It is impossible to give a simple explanation of the kind of business
carried out by general trading companies.
The breadth and scope of products handled
by general trading companies and the globally diverse forms of
transaction are unique worldwide.
General Trading Company Business Model Outline
The general trading company business model rests on two axes - trading and business investment.
The foundational business model is trading focusing on trade with overseas parties.
We fully display our functions as a trading company in our domestic and international business transactions. Such functions, which include data on political economics and regions, our global logistics network, various financial services, as well as risk management based on our vast data access and experience, allow us to provide products and services that are suited to our customers' needs.
The other general trading company business model is business investment. We engage in business investment with the aim of enhancing our functions in accordance with customer needs and expanding our business regions utilizing expertise cultivated in our trading business.
Rather than making investments with short-term goals, we decide upon our investments with a long-term viewpoint aiming for the growth and expansion of businesses and markets together with our domestic and overseas partners. After executing such investments, we encourage business growth by dispatching human resources and participating in management in order to promote improved corporate value.
Value Chain Outline
The foundation of trading company activities rests on the value chain (broad definition). Rather than simply supplying materials, products and merchandise, our coordination with related companies and business investments means that we are involved in everything from the development of resources that will be used as raw materials to the formulation and construction of plans for efficient supply systems.
For example, in the automobile value chain, our activities cover everything from developing and procuring raw materials until automobiles are actually delivered to customers. We also offer added value by leveraging our trading company functions in a wide range of regions including even the re-use and recycling of waste matter. This chain of value composed of upstream to downstream corporate activities is referred to as the value chain.