Chapter 2 : Strategic Planning for Competitive Advantage

In chapter 2 they explain what a SWOT analysis is, and what it really means is that it allows the firms to identify their competitive advantage. Competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superor to those of the competition. SWOT is abbreviated for, strength, weekness, opportunities and target. The three types of competitive advantage there are, are (Cost, product/service differnitiation and niche. The facts listed beow is an analysis of the vehicle Lexus IS250

Strengths

:Extremely prestigious in theluxury segment

:Stylish and dynamic design which reduces modernized drag providing swift drive

:Continuous innovation to achieve maximum power from minimum fuel consumption 

:Strong appearance in racing events which builds good customer connection and high profile networks

Weaknesses

:Limited distribution and service network and spare part avaibility 

:Tough competition means limited market share

Opportunity

:Accommodating and expanding automobile market

:Acquire newer customers by increasing market penetration

Threats

:Percived as a costly brand which can lead to limited exposure to potential customers

:Competition from other big automobile giants 

Competition

:BMW

:Infiniti

:Mercedes Benz

:Audi

Lexus has been living up to their mission statement which was to ensure quality and comforbility with the sleekest design. The Lexus IS250 was initally launched out in 2006. During 2006 competition had begun, the Lexus IS250 was ranked the highest selling car in the automobile industry during that time. Their biggest competitor was BMW with the 3'series. The BMW 328i was the second top selling vehicle after the Lexus IS250. The advantage that Lexus had over BMW was their life long guarantee and their history with their cars. BMW were known to break down after 70 thousand miles where as the LExus had extended life whtere it almost lasted over 150 thousand miles.

The 5 p's
Product : Lexus IS250

Place : Worldwide dealerships all around the world. 

Promotion : Lexus has been offering at home service if their cars have broken down - this was very new and vert successful service thy were offering which no company in 2006 was offering. 

Pricing - The Lexus IS250 has been known to be an expnsive car, but then again you pay for what you get, which is quality service, phenomenal drive, sleek design, one of the most long lasting car in the Luxury genre.