Question

Several other keiretsu have formed, bringing new configurations to the basic forms. Vertical keiretsu are hierarchical alliances between _______ and __________?

1) Companies and suppliers
2) Companies and customers
3) Companies and competitors
4) Companies and government

Answer 1

Vertical keiretsu are alliances between companies and their suppliers aimed at streamlining the production process through vertical integration.

Step-by-step explanation:

Vertical keiretsu are hierarchical alliances between companies and suppliers. This type of merger, known as vertical integration, involves companies at different stages of the production process combining forces. The aim of this integration is to protect against the loss of suppliers, streamline production, and control more steps of a product's lifecycle, from raw materials to final delivery.

Keiretsu, a term of Japanese origin, represents a unique business arrangement where companies with interlocking business relationships and shareholdings form a collaborative group. In a vertical keiretsu, the hierarchy is arranged with a central, often larger company, at the top and smaller suppliers or producers at various lower levels, forming a pyramid-like structure that encompasses all stages of a product's development and distribution.