Collective strategy, which allows small-and medium-sized enterprises (SMEs) to take on orders that a single company with its limited technical resources cannot, does not function in practice. However, Kyoto Shisaku Net (literally, "Kyoto Prototyping Network") is a group of companies that uses collective strategy to aggressively take on projects that other companies turn down for reasons such as "the specifications aren't finalized," "there is no way to estimate the cost of this project," and "common sense tells us that is an impossible request." There are three reasons for the creation of this virtuous circle: 1) In the Kyoto Shisaku Net participation stage, member companies of the Net participate with the understanding that it is a place to practice the "five percent rule," wherein companies devote five percent of their profit and time to new efforts, company growth, and opportunities for innovation. 2) In the prototyping stage, employees are motivated by participating in cutting-edge R&D, and the companies gain knowledge related to R&D. 3) After the prototyping stage, companies accumulate experience by taking on cutting-edge projects and can stop the vicious circle SMEs find themselves wherein they do not have the experience to win orders. In this

The deterioration of corporate performance is inevitable, and generally, corporations choose measures such as curtailing investment and reorganizing personnel. However, in the case of Kyoritsu Electric Corporation, the company's subsequent core strategy was determined amidst deteriorating performance, and aggressive investments were made in human resources, facilities, and M&A, which were deemed good opportunities. These decisions led to industrial adaptations and peripheral expansions using core technology, overseas expansion, and organizational growth in subsequent periods of economic recovery. Furthermore, before experiencing the downturn in performance, the company engaged in activities such as exploring customer-driven ideas, searching for industries with potential technology adaptation, internally retaining funds, securing procurement methods, developing an internal organizational structure, eliminating vertical organizations, and delegating authority. In other words, the company conducted organization building as a "provision" for withstanding such situations. Although Chandler (1962) advocates "structure follows strategy" for periods of organization building after growth in boom periods, the company turned recession into a turning point for growth by choosing a behavior pattern opposite to