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.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • computer worm

    A computer worm is a type of malicious software program whose primary function is to infect other computers while remaining ...

  • Single Sign-On (SSO)

    Single sign-on (SSO) is a session and user authentication service that permits a user to use one set of login credentials (e.g., ...

  • Certified Information Systems Auditor (CISA)

    Certified Information Systems Auditor (CISA) is a certification issued by ISACA to people in charge of ensuring that an ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • VRAM (video RAM)

    VRAM (video RAM) is a reference to any type of random access memory (RAM) used to store image data for a computer display.

  • Kilo, mega, giga, tera, peta, exa, zetta and all that

    Kilo, mega, giga, tera, peta, exa, zetta are among the list of prefixes used to denote the quantity of something, such as a byte ...

  • flash memory

    Flash memory, also known as flash storage, is a type of nonvolatile memory that erases data in units called blocks.

Close