DENSO

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Title: DENSO

Essay Details:

Subject: Business

Author: Vivian L

Date: November 26, 2014

Level: University

Grade: A

Length: 2 / 593

Essay text:

So Toyota initially set DENSO's international strategy However, DENSO started supplying other automakers with parts. Economies of scale are equally important for parts suppliers and assemblers. Toyota has also benefited from Denso's scale economy, which translates into lower costs, yet better quality products. The contradiction is that Denso has attained market power and pricing autonomy by becoming an oligopoly, which has freed it from Toyota's grasp somewhat. It attains this bargaining power through customer diversification, with Toyota's consent. But, Toyota paved the way for DENSO by being the first in many new markets, such as North America, and by supplying needed capital to DENSO...

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