Keiretsu is a business term that defines a relationship between two businesses that is equally beneficial. This practice is often used between big businesses, such as corporations or manufacturers. This practice was developed in Japan after World War II. Banks encourage companies at the time to give each other deals on products and services to promote mutual success and, I am sure, improve the economy.
Michael Mann, the entrepreneur who bought seo.com for a newly acquired business, operates his entire investment fund after Keiretsu. He says that the purpose of this practice is to allow each small business that he has acquired to have reduced expenses.
According to Google define (I love this, use it all the time) Keiretsu literally means series or related sequence. I really like this principle. It’s synergy at its finest! Why not make the most of your resources and decrease your expenses?
Chinese business also works after a similar principle. Guanxi, a Cantonese word, is a basic force that drives people to have personal social networks of influence (also from Google define). According to Wikipedia Guanxi is “a state of general understanding between two people: ‘he/she is aware of my wants/needs and will take them into account when deciding her/his course of future actions which concern or could concern me’. Sounds like respect, eh?
Karen E. Klein, Keiretsu for small biz?