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Explain the Keiretsu Inter-Structure, and Discuss Why It Is No Longer the Case That the Keiretsus Are a Source of Competitive Advantage.

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Explain the Keiretsu Inter-Structure, and Discuss Why It Is No Longer the Case That the Keiretsus Are a Source of Competitive Advantage.
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Topic: Explain the Keiretsu inter-structure, and discuss why it is no longer the case that the keiretsus are a source of competitive advantage.

This topic deserves our special attention on Asian business groups because they are closely identified with the region’s industrialisation and subsequent economic growth. They are well known by various names, such as Korea’s Chaebol, China’s Qiye Jituan, and especially Japan’s Kereitsu that we will explain according to its impact within inter-firm structure and also discuss why it is no longer the case that the keiretsus are a source of competitive advantage. We have firstly to know that the keiretsu has played a pivotal role in the economic success in Japan and it has already been mentioned that the state supported the former of cartels as one element of industrial policy. Following this idea, in order to achieve economic growth, Japan also actively supported the re-formation of industrial groups from parts of the Zaibatsu, as well as the diversification into several news areas of the economy, such as inter firm-structure. To have a well-defined cohesion in our plan, we going to explain, firstly and briefly, the precedence of industrial financial change and the beginning of Japan’s keiretsu, secondly the keiretsu inter-firm governance and structure, finally the case of keiretsus’ problems as source of competitive advantage.

Keiretsu has a long history. During the decades leading up to Japan wartime economy, the Zaibatsu, a group of firm played an important role of Japanese economy. This group bank helped to raise capital that was used in expansion projects. In others words, generally during this period, banks consolidated, increasing the power of Zaibatsu related to banks. After post- war II, seriously damaged by the effects of the war, Japan tried to set out to establish its industries while the occupation forces endeavoured to abolish the Zaibatsu organisational structure in an attempt to undermine

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