Did you know that a company has existed since the time of Prophet Muhammad SAW? Kongō Gumi, a Japanese construction company, was founded in 578 AD, just eight years after the birth of Prophet Muhammad SAW in 571 AD.
The company’s existence for over 1,400 years makes it one of the longest-surviving business entities in human history. But how has it managed to last for so long? What is its secret? Let’s explore this extraordinary story!
The Founding of Kongō Gumi
Kongō Gumi was founded by Shigemitsu Kongō, a Korean carpenter invited to Japan by Prince Shōtoku. His mission was to build Shitennō-ji, the first Buddhist temple in Japan. Since then, Kongō Gumi has grown into a construction company specializing in building and restoring Buddhist temples and Shinto shrines.
Surviving for more than 1,400 years is no easy feat. Many major companies have gone bankrupt after decades or centuries, but Kongō Gumi maintained its existence through 40 generations of family leadership.
Strategies Behind Kongō Gumi’s 1,400-Year Legacy
1. Sustainable Construction Expertise
Kongō Gumi has preserved traditional Japanese construction techniques passed down through generations. Each generation ensures that the next possesses the same level of skill, maintaining high-quality standards.
To this day, Kongō Gumi remains a specialist in restoring Japan’s historical temples, keeping the company relevant despite changing times.
2. Adaptation to Changing Eras
One of Kongō Gumi’s key successes is its ability to adapt. The company expanded beyond temple construction to take on various construction projects as societal needs evolved.
During World War II, for example, Kongō Gumi did not solely focus on building temples but also contributed to government construction projects in Japan. This flexibility allowed the company to survive through different eras.
3. Strong Family Management
Many family businesses fail due to internal conflicts or poor leadership succession. However, Kongō Gumi managed to sustain its business for 40 generations with a strict inheritance system and strong discipline.
4. Well-Managed Finances
For over 1,000 years, Kongō Gumi maintained financial stability by prioritizing long-term investments and avoiding high-risk speculation.
Unfortunately, in the early 2000s, the company took on significant debt to expand its business. This financial burden ultimately led to its acquisition by Takamatsu Construction Group in 2006.
The End of Kongō Gumi’s Independence
Although Kongō Gumi is no longer an independent company, its legacy continues. It now operates as a subsidiary of Takamatsu Construction Group while maintaining its expertise in temple construction and restoration.
This story demonstrates that even the world’s oldest company can face financial challenges if not managed carefully.
Valuable Lessons from Kongō Gumi
From Kongō Gumi’s long journey, we can learn several important lessons:
- Maintaining Quality and Excellence: A company must consistently uphold high-quality products and services to retain customer trust.
- Adaptation is Key: Businesses must remain flexible and capable of adjusting to changing times to stay relevant.
- Effective Family Management: Family businesses should establish a clear succession system to prevent internal conflicts.
- Healthy Financial Management: Even a centuries-old company can face bankruptcy if it lacks a sound financial strategy.
Kongō Gumi is clear proof that a business can survive for over 1,400 years with a combination of tradition, innovation, and strong management. Although it eventually merged with another company, its legacy endures, inspiring the business world.
So, do you think any other company in the world could rival Kongō Gumi’s longevity in the future?
References:
Komparatif.id. (2024). Kongō Gumi: The World’s Oldest Company That Survived for 1,400 Years. Retrieved from https://komparatif.id/kongo-gumi-perusahaan-tertua-di-dunia-1-400-tahun
Etindonesia.com. (2024). The Oldest Continuously Operating Company Has Been Around for Nearly 1,500 Years.Retrieved from https://etindonesia.com/2024/08/27/perusahaan-tertua-di-dunia-yang-terus-menerus-beroperasi-telah-ada-selama-hampir-1-500-tahun
Seide.id. (2024). Introducing Kongō Gumi: A 1,443-Year-Old Construction Company. Retrieved from https://seide.id/perkenalkan-kongo-gumi-perusahaan-jasa-kontruksi-yang-berusia-1443-tahun
Wikipedia. (2024). Kongō Gumi. Retrieved from https://en.wikipedia.org/wiki/Kong%C5%8D_Gumi
