The Keiretsu Culture in Japan

1106 WordsMar 7, 20125 Pages
as 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,…show more content…
For example, Wal-Mart has 94.5 percent of its sales in North America. This means that the home region of the triad is still its locus for strategy. It does not have a “global” strategy. In fact, one of the best examples is provided by the automobile industry where auto makers are very much region based. In 2005, there were 30 automotive firms in the list of world’s largest 500 firms. Yet none of these are “global” firms, defined as having at least 20 percent of their sales in each of the three regions of the broad triad of the EU, North America, and Asia. Indeed 23 of the 30 auto and auto parts firms are home-region based, with an average of over 60 percent of their sales as intra-regional. There are a few special cases. There are five bi-regional firms, two auto makers and three parts makers, with over 20 percent of their sales in two parts of the triad and less than 50 percent in any region. In addition DaimlerChrysler and Honda derive more than 50 percent of their revenue from a host region and are labelled “host-region oriented”. These findings counter a number of popular myths about the “archetypal global industry”. Common views included that a global car and a global car firm would soon evolve, that all production would shift to cheap labour regions leaving “hollow corporations” in the
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