Other competitors such as Mercedes Benz and BMW had an established reputation and a loyal group of customers. Some other of their customers however, were willing to explore and look for more quality, better performance and more than anything, great service, making way for Toyota's new opportunity to step into the market.
Toyota was able to innovate through many technological advances in speed, fuel efficiency, safety, aerodynamics, quietness, and overall driving experience. Their innovation though, went beyond driving performance: it was their outstanding service. With the combination of all of these traits, they were able to establish a brand that focused on all the little details that the previous market leaders were ignoring.
Lexus as a brand was given all the care and effort possible by the Toyota management, engineers, and developers. Built with an incredible sense of pride, this new "baby" was relentlessly pursuing perfection as their tagline supported. The brand was widely accepted due to their leadership in technological advance and outstanding service, but in addition to this, Lexus was being more reasonable in pricing standards. They provided a best value for the most premium product, allowing customers better access to the product. At the same time, the value was able to retain itself from second-hand markets with its outstanding service and brand value.
Not only did it make sense to position Lexus as the best luxury car brand, but it was almost the only way to make this company successful. Other factors that made this success story was the dedication placed in this effort and external factors such as the market,...