When Toyota launched Lexus cars and Lexus dealers, no one realized Lexus the concept would become a paradigm shift more powerful than simply Lexus cars. But to this day the concept of Lexus is still lost on consumers, competitors, industry analysts, and academics. Lexus no longer represents cars it represents Toyota’s execution of passionately pursuing perfection. As a concept Lexus is not limited to cars and SUVs it can apply to anything. In fact we are constantly searching for a Lexus in any various industry, we find them by recognizing the pattern that goes with the concept.

A Short History of Toyota
The story of Toyota is almost a fable these days. The company was founded by a family with the name Toyoda, but named Toyota because it was determined to be more appealing to customers. So even then, at the very beginning Toyota was customer oriented (according to the story). Eventually Toyota became known among consumers for making highly reliable cars that represented a great value because they were reasonably priced. Across the industry however Toyota became known for its Toyota Production System (TPS) which companies continue to try and copy today in a form known as Lean Manufacturing.

The Auto Market Before Lexus
In 1989 Toyota introduced a luxury brand – Lexus, and the car market has never been the same. Prior to this the various automobile manufacturers all had their core markets. Ford and GM span the globe, but made larger sized cars with powerful engines, and along with Dodge owned the full size truck market. The German brands BMW, Mercedes, and Audi represented luxury, the cars of the rich and famous, status symbols. Japanese cars were allotted the lower end of the auto food change. Teenagers, first time buyers, anyone who couldn’t afford real cars were target consumers for the Japanese manufacturers. Japanese cars were not considered as luxury competitors regardless of their features and amenities. The Toyota Cressida was first and foremost a Toyota despite its engine, interior, and standard features. A similar fate was bestowed upon Mazda’s Millenia and anything brought to market by Honda or Nissan as well.

Enter the Rebranded Dragon
Recognizing that they could not escape the image consumers had of them, Japanese manufacturers decided to launch brands in the USA that appeared to be separate companies. To the average customer Lexus and Infiniti were two new car companies competing in the luxury segment. In fact, to this day, Lexus cars are not sold and the brand does not exist in the Japanese market, they are Toyotas. The effect was that it was not Toyota battling Mercedes or Nissan against BMW, this is important because it is doubtful the Japanese manufacturers would ever have won in that comparison. Think about it, would you ever warm up to the idea of buying a Toyota for the price of a Mercedes? Even today that doesn’t seem to make sense.


The Astounding Feats that are Lexus
What is being called a concept may be more aptly described as a paradigm shift. From its introduction Lexus has logged up one astounding feat after another. Along the way it has re-written the rules of competition and engagement in the auto industry. Here are merely some of the noteworthy accomplishments:
Quality – From it’s first year Lexus has dominated the JD Power Awards for Quality.
Sales – As sales continue to rise, none of the sales are from Toyota its parent company. In other words there is no cannibalization, Lexus is taking share from other companies.
Products – What started as a two model lineup continues to grow and today includes SUVs and now a performance sedan.
Image – Lexus completely escaped Toyota, there are undoubtedly millions who don’t know the Lexus is owned and made by Toyota to this day.
Reputation – Even more than the autos, Lexus has become synonymous with worry free ownership across the entire process. Dealerships go above and beyond to accommodate a customers every whim. When a wife wants a new car that she that will rid her of maintenance nuisances the shopping begins and ends at the Lexus dealer.
Branding – Lexus puts their cars and dealers everywhere a luxury shopper would be. Turn on Golf, there’s Lexus. Turn on Tennis, there’s Lexus.