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Lexus Background

Toyota introduced the first model Lexus LS 400 in 1989 in L.A. spending nearly a billion and previous 6 years developing this 1990 model. LS 400 won major 

motoring awards from publications including: Automobile Magazine & Wheels Magazine

1990S GROWTH AND EXPANSION

1990, Lexus had $63,534 in annual sales & 121 dealerships.

In 1991, Lexus launched first sports coupe, the SC 400, pictured below.

Lexus becomes the top-selling premium car import in the U.S. By 1999 annual sales of $185,890 & 185 Dealerships.

2000s Continued Growth & Global Reorganization

In 2000, Lexus introduced the IS line. In 2002, all-new GX 470 luxury utility

vehicle unveiled in Florida. In 2005, Lexus completed an organizational

separation from parent company Toyota. They expanded the global launch of the

brand in major world markets such as China with strong sales.

In 2009, Lexus awarded the best selling luxury make in America for the 10th consecutive year.

2010s: Recent developments

In 2010, Lexus focused on adding hybrids and new model derivatives.

In 2011, sales drop due to:

• Tokyo earthquake and Tsunami disrupt production.• Increased Competitions from BMW, Mercedes-Benz, and Audi• 14% sales drop in the U.S. market.• Sales increases of 40% and 27% in Europe and Japan respectively

• A global sales total of 410,000 units.

• In 2012, Debuts the first ever Super Bowl commercial at Super Bowl XLVI.

Regional Operation

Lexus sales operations vary in structure by region:• In Japan: 143

dealerships in the country are owned and operated by Lexus.

• In US: a distinct organization from corporate headquarters, with separately owned and operated Lexus showrooms

Porter’s Competitive Strategy

Porter’s Competitive Strategy

Porter’s Competitive Strategy

LEXUS IS HERE

Motto: “The Passionate Pursuit of Perfection.“ Values• We always have the highest duty of care to the assets

entrusted to us by our valued customer and our Company.• We will provide the very best Vehicle Sales and Service

experience for all our customers and strive to be the benchmark by which all other Motor Vehicle Dealerships will be measured.

• We will do this in a way that will encourage the continuous improvement of our people and our Company.

Philanthropy • Champions for Charity• Lexus Eco Challenge

The Lexus Culture

The Lexus Luxury Products

Sedans

IS – Intelligent Sport

GS – Grand Sport

ES – Executive Sedan

LS – Luxury Sedan

SUVS

RX – Recreational 4x4 GX – Grand 4x4 LX – Luxury 4x4

CONVERTIBLES

IS C – Intelligent Sport Convertible

Hybrids

CT H – Compact Touring Hybrid

RX H – Recreational 4x4 Hybrid

ES H – Executive Sedan Hybrid

GS H – Grand Sport Hybrid

LS H – Luxury Sedan Hybrid

PERFORMANCE

IS F – Intelligent Sedan F-Performance

LFA – Lexus F-Performance Apex

CONCEPT

LF-LC LF-CC

Leader in Customer Service

ESTEEMED DEALERSHIPS

Lexus named most reliable car brand in US at least 14 times.

Technicians graduates from the Lexus Commitment to Perfection Certification program. • Where Lexus and the

National Institute of Automotive Service Excellence require grueling exams and in depth training.

Rigorous application process to be a Lexus dealership. • When the brand was

launched the application process included several face-to-face interviews between the company and each potential dealer. • Only 80 existing

chosen from 1,500 applicants.

Leader in Customer Service

IN-HOUSE SERVICE

Customer waiting lounges and office areas to conduct business in.

Customizable car settings

Free internet service Shuttle services Complimentary car

washes According to their

covenant, "Lexus will treat each customer as we would a guest in our home."

Leader in Customer Service

Lexus loaner vehicles.

Lexus Owner Welcome events.

Exemplary recall service.

Breakfast Club. Lexus National

Service History Database.

Roadside assistance.

ONLINE HELP

Insider BonusLexus offers deals and discounts at partnering hotels, restaurants, golf courses, event services,

and retailers.

Technology

How-to videos and manuals for different models.

Lexus Enform App, plan entire trips and send destinations to Lexus Navigation System—all without a computer.

Safety Connect, stay protected on the road. With your vehicle's embedded cellular and GPS technology, you can be in touch with the Lexus 24/7 response center at the touch of a button. Lexus Insider, complimentary service providing audio casts right to your vehicle. Designed to further enhance your driving experience, provides tips for Lexus technologies, travel highlights, and owner benefits.

Sources Cited: http://www.lexus.com/contact/pdf/KnowledgeCenter_PDFs/HistoryofLexus.pdf http://www.strategy-business.com/article/07103?pg=all http://www.lexus.com/models/ISF/service/index.html http://blogs.hbr.org/taylor/2007/12/more_lessons_from_lexuswhy_it.html http://www.autoweek.com/car-shopping/articles/2011/08/milestones-in-the-his

tory-of-lexus.html https://secure.drivers.lexus.com/lexusdrivers/home.do https://www.google.com/search https://secure.drivers.lexus.com/pub-share/pdf/enform/users_guide.pdf

https://secure.drivers.lexus.com/lexusdrivers/info/my-lexus/resources/lexuslink.do

http://www.prweb.com/releases/2013/1/prweb10331192.htmhttp://pressroom.lexus.com/article_display.cfm?article_id=2078

http://www.lexus.com/contact/faqs/corporate_info4.html http://www.youtube.com/watch?v=eGrSJodRMk8 http://www.forbes.com/sites/matthewdepaula/2013/01/30/the-2014-lexus-is-

is-meant-to-be-more-of-a-movie-star-than-a-runway-model-says-toyota-design-chief-tokuo-fukuichi/2/

http://www.zercustoms.com/photos/Lexus-concept-sketch/Lexus-concept-sketch.jpg.html

THANK YOU

MIS 3300.006 - GROUP 3