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Business strategy for Lexus and BMW: Competition, strategies, outsourcing

Unit 6: Business and Multi-Business Strategy - Discussion

Topic 1
Visit the websites of two luxury car makers: Lexus and BMW.

These two companies compete in the same strategic group. Browse the sites and look for each company's business-level strategy.

In what ways are the luxury car companies' strategies similar? In what ways are they different? Which company would you say has the competitive advantage? Why?

Unit 7: Implementation - Discussion

Topic 2
Why has outsourcing become a key element in shaping functional tactics for most firms today? Please find a Fortune 1,000 company that uses outsourcing and has been successful at doing so. Support your finding through proper citation.

Solution Preview

In what ways are the luxury car companies' strategies similar? In what ways are they different? Which company would you say has the competitive advantage? Why?

It appears that both Lexus and BMW have chosen to use a 'differentiation' strategy. For both car companies, implementing this nature of strategy means value is afforded to the consumer via unique characteristics and features of its products, rather than by a lower cost. Both Lexus and BMW concentrate on product innovation, and developing the characteristics consumers want, rather than concentrating on the lowest competitive cost. As a 'status' car, both Lexus and BMW can take advantage of this form of strategy (Lexus, 2010) (BMW Group, 2010).

In contrast, for Lexus, their strategy is apparently to petition to the consumer who is environmentally cognizant of the ecologically-friendly ambiance in today's society. Explaining its hybrid philosophies, the Lexus website exhibits consumer advantages ascertained with the purchase of a Lexus; for instance: less detrimental emissions, noise pollution reductions and an increase in fuel economy. For Lexus, jumping on the "go green" bandwagon appears to be their latest strategy ...

Solution Summary

Business strategies for Lexus and BMW. Competition and strategies are examined.

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