Keiretsu

The presenter gave a detailed explanation on what the word Keiretsu meant. It is the linkage of
numerous small organizations to form an entire market. This takes place usually through owning
small stakes in each others company. The business strategy was formed in the 1800s by Japanese
government in order to diffuse traditional adversarial relationships between buyer and supplier.
The author contributed to stating the two types of keiretsu, horizontal as well as vertical. Horizontal
is when a group of very large companies that are independent, operate in different industries such
as Mitsubishi. Whereas vertical is formed by one very large company followed by hundreds of
smaller ones.
Based on the authors research, companies that indulge in the art of keiretsu are virtually
untouchable. A strong bond as well as good connections and substantial financial backing has made
companies hard to compete against. But there are ways to which a newly established company can
go head to head according to the findings of Jonathan (2001). The study showed that, although
powerful, it is still possible to challenge keiretsu based companies. He discovered two methods to
which a new company can adopt; first of which would be the intervention of the government.
Through this, companies can make keiretsu companies go the extra mile by challenging them. Paper
works, trade barriers as well as restrictions can be a method used to ensure a challenge. Another
factor is the business solution. This is when all else fails and what is left is to beat the companies at
their own game.