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Analysis IN THE Lexus Company Marketing Essay

Lexus is the blissful luxury vehicle section of Japan automaker Toyota Motor unit Corporation. First presented in 1989 in america, where Lexus has positioned as the highest-selling maker of luxury cars, as of 2006 Lexus vehicles are sold in 68 countries and territories worldwide. In 2005, the department launched in Japan, becoming the first Japanese luxury car marque to be presented in its market. The Lexus marque has since debuted in additional export market segments within the division's ongoing global extension.

Net export

Introduction stage

Standardised stage


Development stage



Introduction stage

During the past due 1980s, Lexus vehicles have been consistently produced in Japan with processing centered in the Chubu and Kyushu regions and in particular at Toyota's Tahara, Aichi, Chubu and Miyata, Fukuoka, Kyushu crops by Toyota Engine Corporation right away of the procedure. Toyota created Lexus as a fresh brand and section in order to put Toyota to enter the luxury car segment. Toyota possessed no experience in producing such high-end vehicles, with their related increase in quality requirements. In order to balance weight in a front-wheel drive vehicle, the engine motor is aligned east to western alternatively than north to south as with rear-wheel drive vehicles. Such an east-west or transverse axis engine unit design required an exceptionally narrow and brief gearbox for the automatic transmission.

With no experience producing programmed transmissions at that time in late 1980s and early on, Toyota lacked the internal expertise to create such a organic and abnormal design with time to meet its product introduction deadlines. Instead, Toyota contracted the gearbox design to another distributor, Aisin Seiki. As part of the agreement, Aisin Seiki looked after resident staff at Toyota to meet daily with body and engine designers as changes were being made. Not merely was original product performance successful but over time Toyota was able to dominate key functions through learning.


Development stage

Toyota most widely known secret weapon is its great and unorthodox system of developing, which it pioneered through the midsection of twentieth century as an alternative to traditional mass production. In 1989, Lexus was broadly praised for its quietness, well-appointed and ergonomic interior, engine performance, construction, aerodynamics, fuel economy, and value although it was criticized by some auto columnists for derivative styling and a suspension regarded as too diminishing of managing for ride comfort. The Toyota Production System (TPS) has allowed the production of high-quality, reliable cars at a lower production cost. This technique also has made Toyota nimble in response to fluctuating market demand and in a position to produce vehicles fast to match the orders coming in from retailers.

The first design was extremely expensive for Toyota to create, particularly considering that Toyota was worried about maintaining a reasonable quality level and recognizing a superior quality rating. To achieve these goals, Toyota's design relied on the utilization of a huge number of individual parts for encouragement and here were hardly any outside suppliers who might have completed the work for Toyota better value. To aid learning and stability, Toyota maintained an individual project manager within the first two Lexus product development projects. Over time, Toyota understood significant reductions in expense alongside continuing quality improvements in terms of design and part ease.

Standardisation / maturity stage

Assembly of the first Lexus built outside the country, the Ontario, Canada produced Lexus RX 330, started in 2003. Carrying out a corporate and business reorganization from 2001 to 2005, Lexus performs its own design, executive, and processing centers, solely responsible for the division's vehicles. In 2005, Lexus completed a complete organizational separation from mother or father company Toyota, with dedicated design, executive, training, and manufacturing centers working exclusively for the department. This effort coincided with Lexus introduction in its market of Japan and an expanded global start of the brand in major world major sales markets to THE UNITED STATES, Europe and Asia.

Toyota renowned logistics management system in addition has been a significant operational benefit for the company, enabling it to monitor inventory levels for parts and raw materials as well as finished products, and keep those levels low. This marketing of resources in the development of cars allows Toyota to maintain a strong cash flow position. In mixture, these systems keep Toyota competitive in their functional charges for market penetration as Toyota will take significantly less time to add a new car compared with many of its global opponents, it can act in response better to changes in customer needs for higher demand in Lexus creation.

Barriers to Trade

Most of the united states in nationwide would ever before choose to use a quota as a obstacles for trading in automobile industry whenever a tariff has the added good thing about raising income. Tariff is a tax on imports, which is gathered by the government and which increases the price of the nice to the consumer. Also called duties or transfer duties, tariffs usually aim first to limit imports and second to improve revenue. The major reason is the fact that quotas allow the region that uses them to choose the number to be imported and let the price go where it'll. A tariff adjusts the purchase price, but leaves the post-tariff amount to market makes. Therefore, it is less predictable and correct when compared to a quota.

The aftereffect of tariffs and quotas is the same which is to limit imports and protect domestic producers from overseas competition. A tariff boosts the price of the foreign good beyond the market equilibrium price which reduces the demand for and eventually the way to obtain the international good. A quota restricts the resource to a certain quantity, which raises the price beyond the market equilibrium level and thus diminishes demand.

Tariffs come in various forms, mostly depending on motivation, or alternatively the stated motivation. For example, a tariff may be levied to be able to bring the price tag on the imported good up to the level of the domestically produced good. This so-called scientific tariff which for an economist is anything but has the explained goal of equalizing the purchase price between foreign and domestic producers. On this game, the consumer loses.

For example, the "Buy Japanese" mentality has lessen the import of overseas product through tariff in order to support domestic producer from international automobiles competition resulting in the preconceived notion that most foreign products are substandard in quality of producing.

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