wonderful job helping session Even I paying a fee services I Thank I forever grateful assistance provided a difficult time life. I ! Sincerely, Jane Since I work a Lexus Dealership, I choose "Lexus Corporation" assignment
Impact of Lexus Corporation mission, vision, and stakeholders on its overall success
A company's mission and vision statements provide answers to questions regarding where the company is going, what the company values, and what it does Whitbred, Skalski, Bracken, & Lieberman, 2010.
They both relate to the company's main purpose and they communicate this purpose to the employees, customers, investors, and dealers who are its key stakeholders. A company that has a mission and vision that is clearly communicated, collectively shared, and widely understood perform better and are highly successful. Having a mission and vision statement that the company can refer to, has allowed the company employees who are its primary stakeholders to remain on track and they do not lose sight of the company's core competencies. This has greatly contributed to the company's overall success.
The mission statement for the Lexus Corporation has given all the employees from top managers to the line workers a clear direction. Since everyone knows what the company does, what it is, and where it is going, they can all focus their attention to achieve the company's success. For the Lexus Corporation, their mission statement gives focus, motivates, directs, and excites its employees, customers, and investors, which in turn has provided the necessary ingredients for the company's success. The company is committed to satisfying the customers by offering them high quality, excellent services, and value for their luxury cars. This statement has made sure that the customer who is one of the company's primary stakeholders, is treated with utmost respect and is always given the best quality regarding their choice vehicle. Serving its customers with pride, and respect the company has maintained good customer service as per its mission statement and this has ensured there is repeated sales, and good word of mouth. All this have impacted the success of the company positively.
Satisfied and happy customers will always recommend the company to other people. As the company is always endeavoring to satisfy its customers need and desires it has allowed the primary stakeholders to provide them with repeat sales and positive reviews, which contribute greatly to its success. The investors who believe in the company's innovations and support the company by providing funds for new developments have also contributed to its success since the company would not have managed to innovate without funds. These innovations allow Lexus Corporation to keep up with its rivals and serve its own niche market.
How the five forces of competition impact the Lexus Corporation
The Lexus Corporation competes in the luxury car industry. This market deals with automobiles that give desirable and pleasant features that are above the necessary automobile needs. The automobiles will provide comfort, design, performance, prestige, and status. To make sure it remains competitive the company will need to analyze the five forces of competition which are threats of new entrants, power of customers, threat of substitutes, power of suppliers, and competitive rivalry in the industry Hill & Jones, 2012()
1.0 Threat of new entrants
There is a minimal threat of new entrants to the luxury car industry. This is because of the huge amounts required for establishing manufacturing plants and other needed resources. Another reason for a low threat is the fact that the industry has brand equity. Majority of the customers in the luxury industry are willing to pay premium prices provided they get the brand the like and desire. This makes it difficult for new entrants to establish themselves in the industry as they would need to provide a vehicle that has features not offered by all the others. Well established companies in the automobile industry can enter this market by forming strategic partnerships. Lexus Corporation was formed by Toyota and it is the luxury car arm of Toyota. Having penetrated the market, the company should not overlook the low threats that new entrants can have to the industry.
2.0 Threat of substitutes
In the luxury car market, the threats of substitutes are relative. The other modes of transportation may not be suitable for the customers in this particular market. This is because the customers of the luxury automobiles are looking for specific convenience, utility, value, and independence that other modes of transportation or automobiles do not offer. The closest substitutes would be cheaper practical cars, which would not offer the same level of luxury, comfort, or design that the luxury car has to offer. The threat of substitutes would only affect the Lexus Corporation if another rival company starts to develop cheaper cars that have the same features.
3.0 Power of suppliers
Independent suppliers determine the market pricing for the products. They also affect the distribution and delivery of the products. Suppliers are not only restricted to the customers end, but they also come into play when the company is sourcing for its raw materials. When there are few suppliers the company will be forced to use the few and pay the high price for their materials or services. This will have an overall impact on the production costs and overall pricing for the product.
4.0 Power of customers
Majority of customers in the luxury car industry have vast information regarding the cost of production and overall pricing for the cars. Armed with this information, the customers would bargain so much to ensure that they pay a low price as possible. Though the Lexus brand may have established itself, there are customers will still not be willing to pay high premium prices. Other customers will be going for the brand name, and the price tag will not matter, and this is where the company can concentrate. Giving exclusive features and quality service will give the company a slight advantage.
5.0 Competitive rivalry
Competition is very stiff in the luxury car market. All competitors in this industry are global giants, and they have numerous assets, which allow them to compete at all levels. The competitors produce and allow a customer to customize the car to suit their unique features in case they do not want to purchase the standard car. Lexus Corporation is viewed as the new entrant in the market, and it has to compete with these other giants to ensure it gains a portion of the industry. The company has to keep innovating and advancing faster than its competitors to ensure it leads the pack.
SWOT analysis for Lexus Corporation
The Lexus Corporation strengths are competitiveness and speculation. While majority of its competitors were faced with difficulties when the international motor industry was decreasing, Lexus was able to speculate its brand and saw its profits rise. Lexus Corporation managed to increase its sales by 7.4%. Lexus Corporation has achieved a third spot position in the luxury car market, and it became the second largest carmaker in 2003. With a background of mass production, the company is able to produce and fulfill the demand in the market.
There are problems that come about with being big. The auto market is currently saturated, and the auto makers have to make sure that it is their brands that customers are purchasing. This is one of the weaknesses that Lexus is facing. Another weakness the company has is production. The company needs to continue producing cars to ensure that its plants are not idle, and it can retain its labor and operation costs. Utilizing its larger plants, the company can be able to mass produce vehicles at a lower cost and maintain the same production quality its customers expect.
The opportunities that Lexus has over its rivals are the production of vehicles that are environment friendly. With the current environmental trends, car manufacturers need to produce hybrid cars not only for the normal market, but also for the luxury market. Lexus already has the RX 400h hybrid which it can benchmark itself to create more opportunities. Another opportunity the company has is targeting the urban youth. Capturing and nurturing the youth will provide Lexus with a long-term opportunity growth. This is because the youth will form the brand equity for the company in the future. The youth having grown up driving Lexus cars, will want to continue using the company's cars when they grow up.
Lexus Corporation has been faced with numerous product recalls, and this is one the major threats of the company. Product recalls ruin the brand image and mean that the company will have to fix the customer problems at no cost, which increases costs and affects the company's profits. To mitigate this threat the company needs to develop strict production guidelines, which will check all products before they are released to the market.
Strategies to maximize on competitiveness and profitability
For its corporate strategy, Lexus should continue laying focus on its horizontal growth Lynch, 2006.