Toyota’s production system is built around the philosophy of Kaizen, a Japanese term meaning “continuous improvement.” It emphasizes small, incremental changes made by all employees (from factory workers to managers) to enhance efficiency, quality, and teamwork. Over decades, this approach has become deeply embedded in Toyota’s routines and culture. Why can’t competitors easily copy Toyota’s production system (Kaizen)?

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It requires expensive machinery that most firms cannot afford.

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The market structure discourages new entrants.

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It is deeply rooted in organizational routines, culture, and employee learning that cannot be transferred.

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Toyota’s patents legally prevent imitation.

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Toyota’s production system is built around the philosophy of Kaizen, a Japanese ...

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