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Could differences in the sticker prices of the luxury-car market be used as a proxy for...

Could differences in the sticker prices of the luxury-car market be used as a proxy for measuring the strength of Toyota’s best-cost strategy?

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Yes, the differences in the sticker prices of the luxury-car market can be used as a proxy for measuring the strength of Toyota’s best-cost strategy.

Toyota’s best-cost strategy is to provide customers more value for money. To do this Toyota offers its luxury cars and upscale and premium cars at a cost that is lower than that of rival luxury cars like BMW, Audi etc. Toyota targets its cars at value conscious buyers. At the luxury end segment of automobiles product differentiation is the market norm and still there are a large number of value conscious buyers. Toyota has taken a firm grip of that segment of the market that prefers high quality product at an average price or at a slightly higher price (but not hefty price). Toyota uses the best cost provider strategy for its Lexus line of luxury cars and the higher the difference in sticker price of the luxury-car market the stronger is Toyota’s best-cost strategy.

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