KAO Corporation has thrown open itself and its people to the invigorating force of continuous learning. It recognizes the need to view the company as an educational institution and understands that competitive advantage flows from people's ability to constantly enhance their knowledge and skills. This case study dwells on a set of attributes that differentiate KAO Corporation, a learning organization which not only `learned' but `learnt how to learn', from other companies.

In the early 1980s, KAO became one of the most admired companies in Japan and was regularly rated by Nikkei Business ahead of well-known companies like Canon and Toyota in terms of corporate originality, innovativeness and creativity.

Much of the company's innovativeness in the field of super concentrated detergents and shaped diapers were benchmarks in its field, when compared to its much mightier rivals like P&G and Unilever. It consistently came up with new products ahead of its local competitors such as Lion to emerge as the largest branded and packaged goods company in Japan and second largest in the cosmetics category.

It received the renowned "Nikkei Monozukuri Award" in November 2006 for promoting product development and manufacturing capabilities. The award is given to outstanding companies for research centers and systems in Japan and overseas.

HRM Review Magazine, KAO Corporation, Learning Organization, Product Development, Foreign Technology, Japanese Companies, KAO Echo System, Organizational Capabilities, Information Systems, Product-Market Strategy, Multinational Companies, Global Corporation, Total Quality Management, TQM, Value-added Products, Organizational Structure, Innovative Organization.