The sōgō shōsha's longevity, up until this point, can to a certain extent be attributed to their adeptness in being able to rapidly acclimate themselves to the changes in the business and economic environment over the years. By moving quickly and being flexible, the sōgō shōsha have been able to find new products, new customers and new markets to supply. Through it all though, their role as a trader, supplier and intermediary has remained the core of their business.
Keys to evolving
However, this does not mean their business model has not evolved. From simple middlemen collecting commissions, the sōgō shōsha were able to develop other expertise in information (global network), logistics, finance and risk management that allowed them to diversify their product base and extend their market reach. And by combining these functions they were able to add large-scale project development to their business model mix. Furthermore, by injecting investment into the formula they have been able to integrate their supply chains much further, with value-added operations at certain junctures, and create a new earnings base in the process.