Strategies for Firm Positioning: The Case of Lexus (A)
The three caselets in the series "Strategies for Firm Positioning" draw the reader's attention to the concept of firm positioning using Porter's Productivity Frontier. For any firm to stay ahead of the competition and build a product or service portfolio, it needs a clear strategic positioning that distinguishes it from its peers. Strategy literature recommends two generic positioning strategies, namely, cost leadership and differentiation, to achieve competitive advantage. These two strategies are very different from one another. Each strategy requires the firm to make choices about quality, operational excellence, innovation, customer centricity, and so on, which are often orthogonal to the choices made under the other strategy. This case series highlights the contrasts between the two generic strategies. Further, the case series shows what happens when a firm selects a hybrid of the two generic strategies.