Posted by: vanhoff | April 29, 2008

Keiretsu Defined

 

 1.    Definition of Keiretsu: In corporate culture, keiretsu refers to a uniquely Japanese form of corporate organization. A keiretsu is a grouping or family of affiliated companies that form a tight-knit alliance to work toward each other’s mutual success. The keiretsu system is also based on an intimate partnership between government and businesses. There were two types of keiretsu; one horizontal and the other vertical, where the vertical keiretsu illustrated the organization and relationships within a company, while a horizontal keiretsu showed relationships between entities. This division is now blurred.

 

Examples:

1        Mitsubishi: The Mitsubishi keiretsu consists of the Bank of Tokyo-Mitsubishi UFJ that helps finance with the interlocking relationships and shareholdings. Companies under the umbrella of Mitsubishi include: Mitsubishi Corporation, Kirin Brewery, Mitsubishi Electric, Mitsubishi Fuso, Mitsubishi Motors, Nippon Yusen, Nippon Oil, Tokio Marine and Fire Insurance, and Nikon.

2        Mitsui: Financed through Sumitomo Mitsui Bank; Mitsui consists of Fuji Photo Film, Mitsui Real Estate, Mitsukoshi, Suntory, Toshiba, and Toyota. This is a very powerful alliance.

3        Fuyo: A Japanese keiretsu that is financed through the Mizuho Bank, and holds the companies of Canon, Hitachi, Marubeni, Matsuya, Nissan, Ricoh, Tobu Railway, and Yamaha.

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