Japan Corporate History & Strategy

General trading companies (sogo shosha) are a uniquely Japanese business model originating from Meiji-era trading houses, reshaped through postwar zaibatsu dissolution. The 'Big Five'—Mitsubishi Corporation, Mitsui & Co., ITOCHU, Sumitomo Corporation, and Marubeni—each generate tens of billions in revenue. Originally focused on trading (trade intermediation), they shifted from the 1980s to business investment, transforming into 'integrated business companies' that own and operate subsidiaries across resources, energy, food, infrastructure, and finance. Warren Buffett's Berkshire Hathaway acquiring stakes in all five in 2020 drew international attention, driving share prices to historic levels. Each company's competitive advantage lies in its network, talent, and risk management capabilities, though commodity price volatility and monetizing non-resource businesses remain shared management challenges.