Keiretsu is a Japanese term for a business network made up of various companies, including manufacturers, supply chain partners, distributors, and sometimes financiers.
Keiretsus work together, have a close relationship and sometimes take small shares in each other while remaining operationally independent.
Keiretsus rose to prominence after World War II and the destruction of the Japanese zaibatsu.
Horizontal keiretsu is an association of various companies headed by a bank that provides them with financing.
Vertical keiretsu means that manufacturers, suppliers and distributors come together to reduce costs and increase efficiency.