Lexus story

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Lexus story

  1. 1. LEXUS STORYBy Group 7Afiz Aboo, Deepa M.K, Rafsal Abdullah, Shalu Mani
  2. 2. TOYOTA• Slow and incremental improvement• Study every detail from every angle• Innovation, Strategic thinking and Operational excellence• Bottom up leadership (Employees are empowered. They don’t wait for managers to direct them)• Lean organizational structure (To remain profitable and sustain growth. They innovate with a focus on customer)
  3. 3. Lexus• Lexus - strategic thinking, innovation and operational excellence- competitive advantage• Lexus arose out of a blend of eastern and western culture.• Strategic motivation behind innovation was to attract younger people into value stream
  4. 4. • Difficult to compete with established brands (BMW and Mercedes)• It was not a company, that customers associated with high end luxury vehicles• They were a major hit in their first year
  5. 5. Why Lexus• More expensive features• Status• Right to be treated like a VIP
  6. 6. Reasons for success• It was well engineered and manufactured -a car of remarkable quality• Exceptional service at dealership• Investment in quality people which led to innovation and competitive advantage• Life time relationship with customers• Lean consumption (understanding what adds value, elimination waste to inc. efficiency and dec. waiting time• Reduced waiting time
  7. 7. Features of Lexus dealership• Car is picked up from customers house• Replacement car• Well furnished waiting room with plasma TV, Refrigerator with complimentary beverages, Wireless internet• Window to repair bay (Clean service areas)• Car is cleaned each time its in shop, even for oil change• Special services such as manicure or massage.
  8. 8. Attracting the dealers• Open recruitment process to competition from top dealerships in market (whether they sold Toyotas or Volvos)• Gave them realistic purview of what is expected (capital investment, customer first, intensive training)
  9. 9. • Capitalization (satellite connection, specific requirements that cost money, service window etc.)• Customer satisfaction levels (top 2% of whatever brand they represented)• Management team (experience in selling luxury products, connections and authenticity to wealthy people)
  10. 10. Developing the dealers• Toyota invested in teaching them how to be Lexus dealer• Selected dealerships with owners who were willing to examine entire business from ground up, who were passionate about the business• Flew them to Japan and trained everyone in dealerships• Specific training programs for every role (how to answer phone or put on hold professionally etc.)
  11. 11. • Lexus vocabulary (customers as guests)• Developed certification programs and online tests (if someone is master certified he gets a subsidized lease to drive a Lexus even if he’s a technician)• Made everyone feel important (invited everyone to store during events etc.)• Identified Key points for each job and developed high level standardized work for each job (everyone were very clear about what they had to do

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