Kao Corporation
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...branded and packaged goods company and the second largest cosmetics company in Japan. Originally founded as a soap company, Kao now produces a variety of soaps, detergents, personal care and hygiene items, cosmetics and floppy disks. Kao is a vertically integrated company owning many of its own raw material sources. It has also built its own wholesale sales organization with exclusive distribution rights in Japan. The company credits its remarkable success to its integrated learning capability. The development of Sofina cosmetics exemplifies how the company operates. Any new product must first satisfy five principles: 1.) it must be useful to society; 2.) it must use innovative technology; 3.) it must be of value to consumers; 4.) both the market and the consumers must be understood; and 5.) the product must be compatible with the trade. The product began with an idea: what makes wrinkles appear and how to...
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