The Keiretsu Culture In Japan

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ASIAN MARKETS | November 23 2011 | THIS REPORT TALKS ABOUT THE KEIRETSU CULTURE IN JAPAN AND HOW IT IS USED IN MARKETING, CAPITAL AND MANPOWER STRATEGIES. IT ASLO TALKS ABOUT THE AUTOMOBILE INDUSTRY IN THE GLOBALIZED WORLD. | BY: AFREEN KHAN | THE KEIRETSU CULTURE IN JAPAN "Keiretsu" is a Japanese term and translated as "Group". It also interpreted as "partnership" or "alliance". Keiretsu is the renowned Japanese co-operate grouping characterized by cross-share holdings and regular meetings between executives; represent more-or-less closely tied groups of integrated businesses. There are broadly two types of keiretsu, the horizontal (kinyu) type and the vertical, manufacturing keiretsu. In the early 1980s, the top six keiretsu alone directly accounted for about 5 percent of the Japanese labour force and 16 percent of total Japanese corporate sales. This system helped protect Japanese companies from takeovers by foreign investors or companies. It can still serve that purpose and did in 1984, when members of the Mitsubishi Group protected the Mitsubishi-Oil Company from being acquired by Texaco. Together the Sumitomo, Sanwa, Mitsui, Mitsubishi, Fuyo and Dai Ichi Kangyo groups account for roughly one-fourth of Japan's total business assets and revenues. Some of the distinctive characteristics of Japanese keiretsu in the following context are as follows:- * MARKETING: Due to the keiretsu culture adopted by the Japanese companies they have direct link with the consumers via retailers and whole sellers. The Japanese have strong customer relation as they follow customer-led product development which means that they take feedback and recommendations from the customers on their product and thereby make changes according to their suggestions or recommendations. Another keiretsu aspect in marketing was to shift the goal from growth to

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