Penetrating The U.S. Market

Japan big three automakers, Honda, Toyota, and Nissan has success exuberanty penetrated into the U.S. luxury elevator car market which was exclusively predominated by American and German automobile companies. Their pricing strategies are critical points to enable them to abrupt 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 carry of elasticity at the lower end of luxury terms range in the mid 1980s. The accept was supposed to be elastic, but however, it turned out to be inelastic. This phenomenon revealed a gustatory sensation strategy can be applied as heading as outlay 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 divi sion called Acura, launched dickens luxury models with affordable price Legend and Integra to meet targeted luck who are unable to afford but seeking to contribute up to bigger cars. In this phase, the Japanese used the cheerfulness Tzus commandment 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 support 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, an d principle II-5, chip power through flexib! ility. Honda has a first-mover advantage so as to be in accordance with principle II-6, dominate the superiority. Second, Toyota had expect to trade up some customers between center of attention ages with periodical household income of $100,000 by introducing two versions of Lexus- flagship LS 400 and sports sedan ES250. owe to a lack of experience, the retail price that Toyota put down 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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