Penetrating The U.S. Market

Japan big three automakers, Honda, Toyota, and Nissan has success plenteousy penetrated into the U.S. luxury gondola market which was exclusively shadowd by American and German automobile companies. Their pricing strategies are critical points to enable them to bold a new market. Meanwhile, their success of strategies may be as a result of utilizing the Chinese warrior, General sunniness Tzus classical warfare theories. First of all, first challenge was do by Honda after they found out an unusual compel of elasticity at the lower end of luxury prejudice range in the mid 1980s. The get was supposed to be elastic, but however, it turned out to be inelastic. This phenomenon revealed a insight strategy can be applied as head teacher as terms competition. This factor coupled with the oil crisis in the 1970s which made American less popular due to heavy gas consumption put Japanese automakers to demand the U.S. luxury car market. Honda, in its new division called Acura, launched both luxury models with affordable price Legend and Integra to meet targeted tract who are unable to afford but seeking to nurture up to bigger cars. In this phase, the Japanese used the sun Tzus prescript I-1 survey the situation, I-2 design the strategy, and I-3 plan the offense.

Further, in clubhouse to accomplish its strategy, Acura kept increasing its number of dealerships to sweep up in target sales, and in the meantime, give room for price talks to satisfy American customers. From abovementioned, Honda applied the principle-II-4, control the situation, and principle II-5, chip power thr ough flexibility. Honda has a first-mover ad! vantage so as to be in accordance with principle II-6, dominate the superiority. Second, Toyota had expect to trade up some customers between nub ages with periodical household income of $100,000 by introducing two versions of Lexus- flagship LS 400 and sports bar ES250. owe to a lack of experience, the retail price that Toyota knack was unreconciled with its image of...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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