Browse Definitions:
Definition

keiretsu

Keiretsu is a business network composed of manufacturers, supply chain partners, distributors and financiers who remain financially independent but work closely together to ensure each other’s success.

In Japanese, the word keiretsu means “group.” In business, the word is often used as a synonym for partnership, alliance or extended enterprise. The formation of a keiretsu allows a manufacturer to establish stable, long-term partnerships, which in turn helps them to stay lean and focus on core business requirements.

Keiretsu are often established to share best practices and improve risk management by lowering unknown variables. In Japan, for example, companies belonging to a keiretsu often hold a large amount of each other's stock to prevent the threat of hostile takeovers. The close relationships that a keiretsu provides may also be used to stabilize a supply chain, protect proprietary technology and discourage partners from disclosing information about each other to competitors.

The stability a keiretsu provides, however, can sometimes be a liability and prevent the manufacturer from responding quickly to changes in the economy, culture or technology. Keiretsu can also lead to closed markets and monopolies that control every step in an economic chain, which in some countries can result in legal sanctions.

This was last updated in March 2012

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

SearchSecurity

  • evil maid attack

    An evil maid attack is a security exploit that targets a computing device that has been shut down and left unattended.  An evil ...

  • Common Body of Knowledge (CBK)

    In security, Common Body of Knowledge (CBK) is a comprehensive framework of all the relevant subjects a security professional ...

  • rootkit

    A rootkit is a program or, more often, a collection of software tools that gives a threat actor remote access to and control over...

SearchHealthIT

  • value-based healthcare

    Value-based healthcare, also known as value-based care, is a payment model that rewards healthcare providers for providing ...

  • health informatics

    Health informatics is the practice of acquiring, studying and managing health data and applying medical concepts in conjunction ...

  • clinical trial

    A clinical trial, also known as a clinical research study, is a protocol to evaluate the effects and efficacy of experimental ...

SearchDisasterRecovery

  • crisis communication

    Crisis communication is a method of corresponding with people and organizations during a disruptive event to provide them with ...

  • Zerto

    Zerto is a storage software vendor that specializes in enterprise-class business continuity and disaster recovery in virtual and ...

  • crisis management plan (CMP)

    A crisis management plan (CMP) is a document that outlines the processes an organization will use to respond to a critical ...

SearchStorage

  • SSD write cycle

    An SSD write cycle is the process of programming data to a NAND flash memory chip in a solid-state storage device.

  • data storage

    Data storage is the collective methods and technologies that capture and retain digital information on electromagnetic, optical ...

  • hard disk

    A hard disk is part of a unit -- often called a disk drive, hard drive or hard disk drive -- that stores and provides relatively ...

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close