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Lexus SWOT Analysis

Here is a detailed SWOT analysis of Lexus covering strengths, weaknesses, opportunities and threats.

Published by MBA Skool Team in Automobiles category Read time:

Lexus Strengths

  1. Lexus is extremely prestigious in the luxury segment
  2. Stylish and dynamic design which reduces aerodynamic drag providing swift drive
  3. Motto of Lexus cars is continuous innovation to achieve maximum power from minimum fuel consumption
  4. Wide range of diversified product portfolio
  5. Strong presence of Lexus in racing events which builds good customer connect
  6. Already forayed into hybrid & concept cars which hold tremendous potential

Above are the strengths in the SWOT Analysis of Lexus. The strengths of Lexus looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Lexus Weaknesses

  1. Limited product portfolio of Lexus cars in growing markets
  2. Tough competition means limited market share
  3. Limited distribution & service network and spare part availability

These were the weaknesses in the Lexus SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Lexus Opportunities

  1. Accommodating & expanding automobile market can be tapped by Lexus globally
  2. Leverage the early movers advantage in hybrid & concept car segments
  3. Acquire newer customers by increasing market penetration
  4. More inclination of affluent customers to purchase international brand can boost Lexus sales

Above we covered the opportunities in Lexus SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Lexus Threats

  1. Perceived as a very costly brand which can lead to limited exposure to potential customers
  2. Competition from other big automobile giants can affect Lexus' business
  3. Product innovations and frugal engineering by competitors

The threats in the SWOT Analysis of Lexus are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Lexus SWOT analysis.

About Lexus

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Lexus Overview
Parent Company

Toyota
Category

Sports Car, SUV, Sedan, convertibles
Sector

Automobiles
Tagline/ Slogan

Engineering the impossible; Pursuit of perfection
USP

A dedicated luxury vehicle division by Toyota, Lexus has been manufacturing luxurious and most efficient cars delivering maximum power from minimum fuel usage
Lexus STP
Segmentation

Luxury cars for Elite class
Target Market

Targeted towards extremely affluent customers seeking ultimate luxury
Positioning

Lexus is positioned as a company continuously seeking perfection through adoption of latest and most innovative technologies


This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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