Time To Overhaul Japan's Keiretsu Model

Life turns on a dime, including the economic life of Japan's giant corporations. A decade ago they bestrode the earth, gobbling up market share, terrifying competitors. Armed with a corporate culture that emphasized long-term planning, consensus management, cross-holdings of family companies, life-time employment, and close cooperation with the government, their very success cast doubt on the viability of U.S.-style, market-driven capitalism. Today, Japan's keiretsu are in deep trouble. Japan is ending a lost decade of economic growth with its core business model a wreck and no alternative in sight.

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