Kao Corporation is a highly innovative and efficient Japanese company
Kao Corporation is a highly innovative and efficient Japanese company that has managed to take on and beat Procter & Gamble in Japan. Two of Kao's revolutionary innovations include disposable diapers with greatly enhanced absorption capabilities and concentrated laundry detergent. However, Kao has had difficulty in establishing the kind of market-sensitive foreign subsidiaries that P&G has built.
a. What competitive advantages might P&G derive from its global network of market-sensitive subsidiaries?
b. What competitive disadvantages does Kao face if it is unable to replicate P&G's global network of subsidiaries?

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