ts. Moreover lower leverage would translate into less interest payments. However, at present, 39.18% of the company’s assets are still financed through borrowings. This is still considered quite high and risky on the shareholders as in a case of liquidation; creditors would be paid first. SWOT Analysis Potential Internal Strength Ability to discover consumers needs Through the use of consumer orientated approach in its marketing strategy, Kao has been successful in satisfy its consumer. With specific efforts undertaken to obtain valuable feedback from consumers, Kao has constantly been able to keep track of changes in the consumer’s taste or needs and as such be the first to satisfy those needs in the market. Combined with Research & Development efforts, Kao is able to capitalise on the opportunities and gain competitive advantage. Superior Research & Development Currently Kao Corporation Research & Development efforts encompass a wide range of fields such as surface science, organic chemistry, polymer science, biological science and material science. At Kao Corporation, Research & Development work is on cutting edge technology which in turn enables Kao to develop new products that provide value and comfort to meet consumer’s needs. Moreover, Research & Development efforts is not only focused on making new products but also considering the product design and the convenience of packages through ergonomic improvements. Strong Sales Force In Japan, Kao Corporation has its own sales company system, which differs from other competitors. Kao develops close relations with the retailers. By co-operating and working together on many issues such as store shelves to make convenient for consumers to choose and purchase products, and also improve logistic efficiency through the use of EDI and ECR. Effective Profit Management Over a 5 year period beginning in 1995, managed to sustain profitable growth. In 1999, the Return on Equity ...
