Keiretsu is a group of companies that are intertwined in terms of business relationships and stock ownership. An example of an informal business group is the entrepreneur’s association. During the second half of the twentieth century, the keiretsu retained its grip on the Japanese economy.

What is ‘Keiretsu’

A loose agglomeration of businesses that share one or more common denominators is referred to as a kaizen in Japanese. It is not necessary for the firms to own shares in each other’s businesses.

Explaining ‘Keiretsu’

This phrase has been in the headlines from time to time, particularly when it comes to discussions about Silicon Valley. One such example is the strong connection that exists between AOL and Sun Micro. Although the two companies are not shareholders in one other, they collaborate on a variety of initiatives.

Keiretsu FAQ

What is a keiretsu system?

Keiretsu is a Japanese word that refers to a corporate network that is formed of several firms that have close relationships with one another and in some instances own small equity holdings in one another while being operationally independent.

Further Reading