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Daimyo are Japanese lords with large landholdings and a private samurai army, who paid no taxes to the government. The daimyo controlled the samurai, who protected the daimyo, and therefore are higher than them on the pyramid.
Just like England in Medieval times, Japan also had a feudal system. It was structured very similarly to the English setup with a few changes of names and positions. The most powerful positions in society were the Emperor, Shogun, Daimyo and Samurai.