Question

Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of:_________________________. a. demand conditions.b. competitive intensity in a focal industry.c. related and supporting industries/complementors.d. factor conditions.

Answer 1

Answer:

.c. related and supporting industries/complementors.

Explanation:

Porter's Diamond is an economic system formulated in his book The Competitive Advantage of Nations by Michael Porter.

Frequently, the instrument is used to analyze the external competitive environment which helps businesses evaluate the relative strength and clarify why some companies have become competitive or have regional benefits.

In this model, four variables that include:

• Firm Strategy and Rivalry
• Demand Conditions
• Related and Supporting Industries
• Factor Input Conditions.

Related and supportive industries are the inputs that drive a country's success. For example, Japan's raw material from suppliers of motor parts helps drive the Toyota motor industry's success.