MNGT 5650 MANAGEMENT & STARTEGY, SPRING 1, 2010
Abstract
Kao Corporation is a Japanese manufacturing company. This company is Japan’s largest soap and cosmetic company. They have developed from being a minor player to being number two in the Japanese market in less than ten years and are the sixth largest soap and cosmetic company in the world. The company’s success was due not only to its mastery of technologies nor its efficient marketing and information systems, but to its ability to integrate and enhance all these capabilities through learning. In other words, it recognizes that competitive advantage flows from people’s ability to constantly enhance their knowledge and skills. Kao Corporation is currently a multi-domestic company with operations around the world. However, Kao Corporation has operations in 3 major regions; Asia, Europe and North America. Within each country, Kao Corporation sets ups its operation in the form of Foreign Direct Investments or Joint Ventures.
❖ Introduction
Kao was founded in 1890 as Kao Soap Company, a family run soap manufacturer. The company was built on the basis of a simple strategy; produce soaps equal in quality to imported brands but at more reasonable prices.
1890 Kao Soap Company – “Cleanliness is the foundation of a prosperous society.” 1940 Kao launched the first Japanese laundry detergent 1950 Kao launched dishwashing and household detergents 1960 Kao’s expansion into industrial products whereby the corporation could apply its technologies in fat and oil science, surface and polymer science. 1970-1980 Presidency of Dr. Matura – the company grew rapidly than ever in terms of size, sales and profit with the launching of innovative products and the start of new businesses. 1982-1985 Kao diversified successfully into cosmetics, hygiene and floppy disks.
Kao combines the strengths of a formalized product development system with the