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lfa lexus 2020 Related Articles

Lexus Malaysia’s service centres resume operations

Starting 22nd April onwards, selected Lexus Malaysia centres will resume after-sales operations.

One last hurrah for Lexus GS with Eternal Touring Edition

The imminent discontinuation of the Lexus GS is fast approaching in August 2020.

Lexus has sold over 5 million luxury SUVs and crossovers to date

As of the summer of 2020, the company has since sold 5 million SUVs and crossovers globally.The first

Fully-electric 2021 Lexus UX 300e launched in Indonesia; marks ASEAN debut

The 2021 Lexus UX 300e is the Japanese carmakers first all-electric vehicle and its launch in Indonesia

New 2021 Lexus IS: Now in Vietnam and 4 other ASEAN countries, but not Malaysia

Thai-spec car picturedEver since its global debut in June 2020, Lexus has introduced the new 2021 Lexus

Better looking spindle grille? New 2020 Lexus IS leaked ahead of 16 June debut

The new 2020 Lexus IS has leaked onto the internet ahead of its official debut on 16-June.According to

2021 Lexus LM teased, Malaysia launch this week

Over the weekend, Lexus Malaysia teased the imminent arrival of the Lexus LM – its first-ever luxury

Lexus NX updated for Malaysia - now with Android Auto and Apple CarPlay

The 2020 Lexus NX in Malaysia is now fitted with Android Auto and Apple CarPlay as standard.

All-new 2nd gen Lexus NX to debut in mid-2021 with TNGA-K platform

The current Lexus NX made its global debut at the 2014 Beijing Auto Show, before going on sale later

Owning a Lexus UX is easy with Lexus Next Step Plan!

Introducing the Lexus Next Step Plan.What is Lexus Next Step Plan?

View More

Lexus confirms new PHEV model in 2021 – Lexus NX Plug-in Hybrid with 306 PS?

Lexus is ramping up its electrified vehicle line-up with 10 PHEVs, BEVs, and HEVs set to be launched

This Christmas, Lexus wants you to experience Unwrap Amazing

Lexus showrooms nationwide will be hosting an Unwrap Amazing customer experience event this weekend 7

New 2020 Lexus IS debuts, 315 PS 3.5L V6 & new LSS+ but no TNGA

Lexus has finally pulled off the wraps to the new 2020 Lexus IS compact sports sedan.

2020 Lexus LX 570 open for booking in Malaysia, starts from RM 1.2 million

Lexus Malaysia announced the updated 2020 Lexus LX 570 is now available for booking at all authorized

Lexus trademarks new name, next car to be RZ450e?

comes as no surprise, as Lexus did announce that they will be releasing more BEV by 2025.

Review: 2020 Lexus UX 200 2.0L CVT, compact SUV with BMW handling, Lexus refinement

(2020 Lexus UX Price & Specs | Gallery)When the all-new Lexus UX 200 broke covers at the 2018 Geneva

Leaked: Could this be the all-new 2022 Lexus NX?

to a report by Creative311, a Facebook user has posted photos of Lexus’ upcoming luxury SUV.Looking

Consumer Reports: Mazda is more reliable than Toyota and Lexus

now the most reliable car brand in USA, ranking ahead of traditional reliability champions Toyota and Lexus

30 years of Lexus: How it began and what is the meaning of the Lexus name?

First introduced in 1989 with the first generation Lexus LS 400, this year marks the 30th anniversary

10th anniversary of Hiromu Naruse's death; Japan's Master Test Driver

This was one of the cornerstones which Lexus built their cars upon.

New 2020 Lexus LS debuts, now with AI-powered ADAS features

Lexus just took the covers off the new 2020 Lexus LS facelift in Japan, giving its flagship model several

2020 Lexus ES updated in Malaysia - now with Android Auto and Apple CarPlay

Based on Lexus Malaysia’s official website, the Lexus ES’s infotainment system has just been

Refreshed 2020 Lexus LC Coupe, lighter and more comfortable

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Consumer survey: Lexus NX and CT200h are UK’s most reliable cars

, Lexus is UK’s most reliable car brand, ahead of second-place Toyota.Which?

Why Toyota's GR Yaris is the most exciting car from Toyota since the Lexus LFA

of his musings and articles on the motoring world at The Motor Muse.If there is one good thing about 2020

RM 249k 2021 Toyota Harrier vs RM 236k Lexus UX: Why Toyota when you can Lexus?

Interestingly, the Lexus UX occupies a similar price range to the Harrier (RM 236k - 290k).

From RM 1.15 mil, the 2021 Lexus LM 350 is the rich man's Alphard - now open for booking

Indonesian-spec car pictured.The 2021 Lexus LM 350, a fully-imported (CBU Japan), four-seater MPV (yes

CVT in the 2020 Toyota GR Yaris, wait...what?

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The new 2020 Lexus LC 500 sheds 10 kg, priced from RM 1.25 mil

Making its first debut as a production car in 2017, the Lexus LC 500 is Lexus’s idea of what a

Enjoy up to RM 47k savings when you buy a brand-new Lexus!

UMW Toyota Motor Sdn Bhd (UMWT), the distributor of Toyota and Lexus vehicles in Malaysia have announced

lfa lexus 2020 Post Review

@Kwebbelkop how about these Aston martin V12 vanquish Lexus LFA and shelby gt500 2020 https://t.co/5Ztcid8rqi

i present my 2020 Lexus LFA FD https://t.co/xmVfqTyPOG

Hardcore 2020 #Lexus RC F Track Edition Is Here. Say hello to the most hardcore Lexus since the LFA. #2019detroitautoshow #reveal #sportscar Read: https://t.co/DAmyfREFcD https://t.co/Cr80425rFs

2012 Lexus LFA will be among the “star cars” offered with No Reserve during the 2020 Barrett-Jackson Fall Auction at WestWorld of Scottsdale, October 22-24. https://t.co/vbsY8cZkZp #Lexus #LexusLFA #LFA https://t.co/WBT31QpNSb

Echoes of LFA in the front of the Lexus LS+ Concept. It showcases imminent production (2020) semi-autonomous features to aid safety. https://t.co/DFPfcNushU

2 #Diecast #Model #cars at the #2020 #Diriyah #Classic #CarShow in #Riyadh, #SaudiArabia. #Lexus #LFA and #Chevrolet #Corvette #Z06. #red #white #supercars #smartphonephotography #nofilter #huawei #p30pro #leica #quadcamera #takenwithhuawei #shotonhuawei #capturedonhuawei https://t.co/8UcirYQHM6

The Lexus RC F Track Edition Is the Hardest-Core Lexus Since the LFA - 2019 is shaping up to be quite a good year for Toyota enthusiasts. In addition to the much-publicized return of the Supra, Lexus fiddled with its RC F for the 2020 model year, giving it more power, refineme... https://t.co/n4ZLbsDWnd

The Toyota FT1 concept 2020. After years of Lexus LFA Nurbringring and other Lexus RCF , Toyota finally gives us a modern beauty https://t.co/gwhBWizOkv

2020 Lexus RC F Track Edition is Not an LFA, But at Least It's Trying - https://t.co/mzc3phKP8H https://t.co/ZEuP9xsg39

New lexus LFA 2020 Redesign, Price, Release Date https://t.co/za7eQep1mS https://t.co/GIV1DW7C5J

lfa lexus 2020 Q&A Review

How come people waste their money on Germans car when a Lexus is far better and lasts forever?

Better? No way. Frankly, I’m concerned for Lexus as some of the fit and finish on their lower end models are really starting to feel a lot more like Buick than Toyota and I hope they can change that. I’m a huge Toyota fan, have been since the 1980’s… My first car out of college: This was a cray car in 1986… it was FAST… 55 MPH in second gear (when it was new) and a blast to drive. Now, fast forward to 2018 and I’m making enough money to drive whatever I want. I’ve been in a Toyota Highlander since 2002. Great SUV, comfortable, highly reliable and has enough spunk to keep me happy - that is until I start looking for a new car. Now, what does Toyota sell in 2018 that’s sporty? Here it is: Nada… nothing… no 2018 MR2… No Supra… maybe in 2020… maybe. How much? Starting at $50,000… maybe. Oh, let’s look at Lexus: The Lexus LC, the “poor man’s LFA”… at $92,200: The only record that this car has made was “one of the worst selling cars of 2018”… with 1,979 units sold in the 2018 model year, which is actually GOOD from 2017 sales. The problem? At that price there’s tough competition. So, what about the LFA? Well Lexus only made 500 of them, and lost money selling them for $375,000 - good news is that there are still at least a dozen untitled “NEW” (5 year old) ones sitting on dealer’s lots in the US. You see at that price point, you’re in some really serious performance territory and competing with some world class Italian, German and British cars. So, what is a car guy to do? In 2019 sports SUV’s are all the rage - Even Lamborghini is getting into the game (again). Here’s what I did… Does Lexus sell a 600+ HP / 627 PF of torque wagon? Wish they did, and I wish it was THIS GOOD. 3.3 seconds to 60 MPH… This comfortable and had THIS MANY totally insane features. Now granted, this is the rarest Mercedes-Benz sold in the US, with only 120 units special ordered annually. However, Mercedes knows this and like the LFA, they’re not making a profit building this totally unwarranted performance wagon - but it is FUN AS HELL to drive - and look at the driving experience: Find a LED dashboard like that in a Lexus… PLEASE…. If Lexus made a car this good I’d buy it… but sadly, they do not.

If Lexus decided to build a successor to the LFA, what kind of performance, feature and price are you expecting?

LFA is a Yamaha V10 that is way better than the 2020 Supra which is a Z4 sister outrage! They can still keep that high price range have different trim levels and engine choices let Toyota decide add EV if applicable Keep closer to the current design or better Toyota can do better The Japanese tend to hold back! That is why Euro design is the best and appealing.

Why is a single-clutch transmission used in a Lamborghini Aventador?

It is kind of strange to find a super car these days with an automated manual gearbox or single clutch transmission while every car manufacturer is racing for the best a smoothest dual clutch transmission. It seems that the only supercar these days with a single clutch transmission is the Lamborghini AVENTADOR with all of its variants (SV-S). There are two reason why Lamborghini chose to put a single clutch transmission in the AVENTADOR. The first reason was timing. When Lamborghini wanted to make the AVENTADOR, it was in a time when most dual DCT weren’t good enough to deal with big amount of power the AVENTADOR produces. At that time when the it cam out almost all cars had automated manual gearboxes like the Lexus LFA The second reason why Lamborghini picked SCT over DCT is because of its weight and compactness. The transmission used by Lamborghini is light and small so it can fit in between the passengers. These two qualities were a must in car like the AVENTADOR because it’s already big and heavy in comparison with other super cars. Someone may wonder” well why Lamborghini still uses the same transmission in its facelifted 2017 AVENTADOR S?” Well, the only way for Lamborghini to change the transmission is buy redesigning the whole car and that makes it an all new car. The will not happen until the replacement for the AVENTADOR arrives in 2020 with rumors saying that it will have a 1000bhp hybrid 7L V12 with a DCT. At least that is what we hope for.

If you had an unlimited budget, what 5 vehicles would you buy?

Wow. If only! Well, even with an unlimited budget, I would want Maintenance free or low maintenance High performance Manual transmission preferred (but not required) Can be an everyday car (drive to work, pick up groceries, etc) With just those criterias in mind, here are my choices: 2020 Acura NSX 2012 Lexus LFA 2020 Porsche 911 Carrera 4S 2020 Tesla Model X Performance 2020 Porsche Cayenne

Is it really worth paying 30k more for 2020 Lexus RC F track edition compare to regular Lexus RC F?

It’s a “lightweight, track-focused version” that still weighs in at a portly 3781 pounds. Its braking system is specific to the Track Edition, of which they’re making only 50. So there’s a good chance that the aftermarket will never make pads for it. Every trackday will send you back to the dealer for a $500 set of pads. Are you really going to take this to the track? Seriously? No, this is a car that they probably built to reward their engineers with some interesting work, and for brand-building purposes. Lexus management knew it would result in a spate of magazine and blog articles that keep an aging model in the spotlight. Just today I saw a bus stop kiosk ad, an LCD-screen ad in an airport, and a billboard - all advertising the Track Edition. Do they need to spend all these marketing dollars to find 50 buyers? No. But it can influence how people perceive the Lexus ,brand,. As of today, I perceive the Lexus brand as one that spends too much money on marketing. If this were a Ferrari, then a rare special edition would have the potential to appreciate. For a Lexus? Pretty unlikely. There’s only one Lexus that sells for more than its MSRP, and that’s the $400k LFA supercar. A bit of a different place in history, that car. Buy a regular RC-F, if you’re into that sort of thing, and spend the extra $30k on a real, dedicated track car with coilover suspension and a roll cage. $30k is more than enough to buy an E36 M3 or a C5 Corvette that’s already fully-prepped.

Could you put a 1LR-GUE V10 dual VVT-I engine from a Lexus LFA to the new 2020 Toyota Supra?

I doubt it would fit and why bother? The Supra is damn fast and it’s actually faster than it’s more expensive brother, the BMW Z4. So by buying the Supra, you already made the smarter purchase and that engine swap (if even possible) would cost a fortune and also leave an LFA somewhere without an engine. If it ain’t broke, don’t fix it.

Should I buy a Lexus or Audi?

I'm assuming that you are talking about brand new 2020 vehicles? This article has Audi winning the competition between the 2 brands: ,https://cars.usnews.com/cars-trucks/audi-vs-lexus However, I have my own take on this. My answer is based on a United States perspective, from a current Audi owner, and depends on the following factors: 1. Long Term Reliability (are you keeping the car beyond the warranty period?) 2. Aesthetics/Style - totally subjective, only you know what you like 3. Performance and Handling - some people just like to go fast and want responsive handling. 4. Budget - How much extra cash do you have? I would have also added a preference between a manual or automatic transmission, but as of 2020, neither brand offers a manual transmission option. Long Term Reliability Lexus is your best bet here. I own a 2015 Audi S4, which has surprisingly been reliable, but I'm not kidding myself. If I choose to keep this car a few more years, at some point, I'll need to change the timing chain, and it's going to cost me thousands. No comparable Lexus (GS-F, IS 350, RC-F) is going to cost that much to replace a timing belt. Japanese manufacturers design their cars with the assumption that the belt is a maintenance item that needs to be easily accessed for replacement. The Germans, on the other hand, require that the entire engine be dropped in order for the timing chain to be replaced. But, I digress. Lexus wins here. Aesthetics / Styling This is subjective, as everyone has their own tastes. For more details on this, please see the link I included earlier. On the Lexus side we have these 11 models: 1. 2020 RC F - Sports Coupe 2. 2020 UX - Hybrid SUV 3. 2020 RX - Small. SUV 4. 2020 LCF - Sports Coupe 5. 2020 ES - Sedan 6. 2020 LS - Sedan 7. 2020 NX - Performance SUV 8. 2020 IS - Sports Sedan 9. 2020 GX - Mid size SUV 10. 2020 LX - Large SUV 11. 2020 GS - Large Sedan On the Audi side, we have these 13 models, including 3 with no Lexus equivalent. If you want one of first 3 models, you can stop reading now. Audi is your only option. 1. 2020 R8 - Supercar. (no Lexus super car equivalent, the closest is probably the LFA and they don’t make those anymore. The LC is not a super car). 2. 2020 e-tron GT Electric SUV. (no Lexus equivalent. the UX 300E is not in the US market…yet). 3. 2020 TT - Sports Coupe. (no real Lexus equivalent) 4. 2020 RS3/S3/A3 - Small Sedan 5. 2020 S4/A4 - Midsize Sedan 6. 2020 RS5/S5/A5 - Midsize Coupe 7. 2020 RS6/S6/A6 - Sedan 8. 2020 RS7/S7/A7 - Sportback Sedan 9. 2020 A8 Horch/A8 - Large Sedan 10. 2020 SQ5/Q5 - Midsize SUV 11. 2020 RS Q8 - Performance SUV 12. 2020 Q7 - Large SUV 13. 2020 Q2 - Small SUV Both manufacturers have designed beautiful cars with great exteriors and interiors. Because styling is subjective (outside of the 3 Audis without a corresponding Lexus model that I mentioned), I call this one a tie. Performance / Handling With great all wheel handling of their sedans like the R8, S3, S4, RS5, S5, and even the car-like handling of their SUVs like the SQ5, the Germans take this category. In fact, this category is one that Audis have been recognized for over the past few decades. If you want all wheel drive and superb handling characteristics, Lexus just doesn’t measure up here. Let’s be honest, the Lexus brand is known for comfort and reliability quality first. Performance is NOT the first thing that comes to mind when you say Lexus. However, there are some exceptions. The LC500, RC-F and GS-F models have powerful engines, and can match the horsepower of some of the Audi models. But they can't match the handling. I drive an Audi S4 and I can attest that the Germans win this one. Budget Audis are expensive. Expensive to purchase, expensive to insure, and expensive to maintain. You pay a big price to have the 4 rings and there is no getting around that. Buying a Lexus is not cheap by any means either, but the maintenance costs are much less that those of an Audi. If this is a strict budget to budget comparison that includes budgeting for initial cost, insurance and maintenance (beyond the manufacturer’s warranty), Lexus wins this one. Final, ,Verdict As much as it pains me to say this as an Audi owner, if you are planning on keeping your car more than 5 years and you care about your budget, I would have to say Lexus is your best bet. If you have money to burn and performance is a priority for you then go for the Audi.

If you had a 5 car garage and all the money in the world, what cars would you buy?

*rubs hands* Okee, this should be fun! #1 - Tesla Model S P100D (image - ,2020 Tesla Model S Review, Pricing, and Specs,) Look at that beauty! The perfect sedan, combining performance, utility, and ease of use into one seamless package. #2 - Rivian R1T (image - ,2021 Rivian R1T: What We Know So Far,) Utility and looks combined. The headlights are quirky but I like them. Plus it has some unique storage options which I like. #3 - Austin Mini Cooper My dream classic car. Preferably right hand drive and manual, so I can practice driving stick. (Real men drive stick, y’know ;) ) #4 - Lexus LFA (image - ,Lexus LFA | Lexus F Models | Lexus Canada,) This is an engineering marvel, and a car I would love to drive. It has an engine which, in the words of former Top Gear host Jeremy Clarkson, “…sounds like an animal that’s sad about something. It’s like, ,Ohhh Noooooooo, I’ve got my paw stuck! Ow!…. Ow… Ow…!,” (He says that as he downshifts. It’s hilarious!) #5 - Aston Martin DB5 Another classic. Just look at it. James Bond, anyone?

Why does Lexus seemed not in a rush to developed a direct successor to the LFA?

Lexus lost money building the LFA. They did not make any profit out of it. They merely wanted to prove they can make a supercar. Plus most supercar shoppers tend to want that badge like Ferrari or Lambo The closest thing that will be coming to the LFA is the LCF by 2020 or 2021. With 600 hp

How would I create my own car manufacturing company?

How about let us start with ,race on Sunday and sell on Monday? ,I think that was the strategy of Bruce McLaren, but others as well like Horacio Pagani with his Zonda. And who doesn’t like an underdog story like how Ford GT40 beat Ferrari six times! in the 60s LeMans? But let’s not skip, we go step by step. Good for you I just reported this topic in our class, and since you A2Aed me you just gave me an idea on how to approach my topic, hence I tackled it with the case of automotive industry, and as a return of you giving me an idea to my report, I will share to you how it went through. And I might show you some slides here. Of course this is not a full-on business plan, just some few ideas, but if you like to be business partners we can arrange things. Haha.. This is based on the book of Michael E. Porter, entitled ,Competitive Strategy: ,Techniques for Analyzing Industries and Competitors,, ,(1998). Particularly on the chapter on ,Entry Into New Business. What to expect when building your own car company? ,If the market forces work perfectly, all will be equally gaining and no one will rise above average returns, that is, we don’t want to have equality as that will hinder us to move further to the top, I guess this is why communism did not work when presented to the capitalists. So let’s be capitalists for now. Entry through internal development,, so we will try to confront the two sources of ,entry barriers, by our own development, something that isn’t in the market yet. More like an innovation either on the product itself or the process of doing it. Hence we will implore the aid of some generic strategies which are the ,cost leadership or cost focus, ,or ,differentiation. In ,cost leadership, we will be the leading company to produce our products cheaply compared to others. This is how Toyota makes its position, making their units cheaper. Toyota gained a advantage by tapping into the concept of ,economies of scale, , ,, that is, by increasing production volume while maintaining the same ,overhead cost, , ,, and thereby spreading the cost of production wider over the number of units they produced. Economies of scale is the reason why a huge business can produce cheaper products over a similar product produced by a smaller production company. For example General Motor’s LS engines are cheaper than a comparable V8 engine from other companies. Though one could argue that LS engines are cheaper because it uses an older simpler technology which also uses smaller number of parts, while that is part of the story, LS engines share at last few components to a different generation of engines. And this engine the same engines that GM puts into their vehicles from trucks to sports car, not to mention, the LS engines fit in most of GMs new and old transmissions so swapping them makes it fairly easy. That greatly cut costs in R&D for different engine platforms, cut costs for tooling, casting, or machining to produce differently designed components. While ,differentiation,, is presenting ourselves to be different from the rest, as Coco Chanel once said: In order to be unforgettable, once must always be different. There are many attempts to differentiate in the automotive industry, but the market is usually in the supercar, high performance area, that only a small insignificant share of the entire automotive market is being attracted. But there is one company that is attempting to push into the mainstream, or maybe this company is making another market. I’m talking about the electric vehicle market—which I will be discussing further in this article. So what are the entry barriers? Structural entry barriers - this is what makes it difficult to enter into the industry because of the technology that is needed in the current market; the already capable incumbents; the demand that is already in the market that is already dominated by some other brands; and consumer tendency to retain the old. Currently, the most nations are pushing for electrifying transportation which demands for the further innovation in the EV or hybrid technology. With the industry that has been dominated by the Internal Combustion Engine (ICE) for more than a century, electric vehicle is a new market. This drive for electrification could shake the down the current Structural Barrier, as not all of the automotive manufacturers have the blueprints for Electric Vehicles. This is how Tesla was able to, push through the structural barrier. Reaction of existing firms - I believe this one is simple to understand, just imagine everyone in a pub already drunk in all the booze they had, and here comes you who all of a sudden banged the door to have a share of the feast. Everyone looks at you… The bartender asks: ,What do you want? ,You then replied with all your proud voice, ,Water! ,Everyone just laughs at you, and they all didn’t take you seriously ignoring you. What if the situation is different? And you just pointed that oldest scotch on the far left-side of the bar without a word, everyone looks at you unaware of your real intentions, just waiting for your words. Finally you said… ,I want that 193*…Hold it right there young lad, ,said the oldest patron of the pub. ,No one should possess that relic. And so you argued, and soon the entire pub joined the commotion. The question is… Can you defend yourself, or at least survive? Let’s see… Pagani and Koenigsegg did focus on differentiation with their Zonda, and CCXR respectively in 2009. And now we have the world’s first megacar from Koenigsegg, the One:1. You see it will take quite a long journey to even introduce a new car that will stun the motoring world. UPDATE July 10, 2020:, And how about a Hypercar that has 4 seats for the family, and with only a three-cylinder hybrid under the bonnet, because you know, fuel consumption. But mind you, Koenigsegg was able to extract 600 HP! that;s 200HP per cylinder. How crazy is that!? Well not really because the electric motor gives it a boost. And this is how Koenigsegg is keeping on track with the market. Koenigsegg Gemera And you must see the technology behind that amazing engine with the free-valve system. That’s only a valve system that’s like a solenoid that’s controlled by a pneumatic system. That’s innovation, right there! And then there was this Honda Civic in 1977, and Mini Minor Morris in 1959 which took advantage of the petrol crisis of their times. This is cost leadership. UPDATE July 10, 2020:, In here is Honda again, taking advantage of the current needs of the market. Due to the world’s government call for greener innovations to help the environment, Electric Vehicles are gaining traction. Hence, Honda being clever as ever, introduced to the world a Honda Urban EV concept, which is very reminiscent of their 1st Gen Honda Civic. This could be the Honda Civic of the EV Era. Image source: Japanese Nostalgic Car. While entering through internal development, it may be possible that there may be some mishaps on the considerations as a factor for an entry decision. We should expect for: A significant amount of investment and start-up losses, and assumption of market prices, that is we need to be competitive with our prices so that people will still buy us. We can’t price high, unless we have the right to do so; The effect of our new capacity, should we introduce ourselves having a new capacity, our new technology or innovation; # 2 may affect the distribution of the market share thus we should expect a retaliation or at least a reaction from the existing firms. Case in point, let’s look at Ferruccio Lamborghini. You know his story, he was a pilot and then he retired after the world war, having enough fortune he entered into tractor manufacturing. He owned a Farrari but was disappointed at some aspects, he pointed it out to Enzo Ferrari himself but was dismissed. He got pissed and built his own car. The first car was named 350GT but it was later renamed to 400GT. I’m not sure why though… He sold 13 cars at a loss, but he was able to enter the game. And it was a successful bet. And now we ask… Will retaliation occur? ,Internal entry will most likely to be disruptive and provoke retaliation, targeting especially on risky industry entries. These are the kinds of industries where retaliation will most likely occur: Slow Growth – because it will further divide market share Commodity or Commodity-Like Products – no brand loyalties hence competition is quite tight, as there is always competition High Fixed Costs – an entrant will add to the cost. What cost? Opportunity cost, as some customers might transfer therefore an existing firm would loose the customer whom would have been thiers High Industry Concentration – entrant is very noticeable; in fragmented industry retaliation may not be quite severe Industries that have incumbents who attach high strategic importance to their position in the business And you should look out for the attitudes of the incumbent management - how did they react before when there was a new entrant? In the car industry, will retaliation occur?, It might depend on who you are and what you can do. Remember the pub metaphor I pointed out before? Again race on Sunday, sell on Monday. ,You get the idea. How to get in, and what to look for? ,Look for the weaker entry points and attack there. And we identify the target industries for internal entry. If an industry is stable (equilibrium), the expected profits could not break the structural barrier, thus an advantage is needed. Targets should have: Disequilibrium industry - the competition is favoured to some or few. This maybe a newly emerged industry, or the entry barriers are only still rising, or the industry players are poorly informed of their situation. this usually happens on small industries. Expected slow and ineffectual retaliation from existing firms - compete with firms whom you know are not really agressive Incumbents’ cost of effective retaliation outweighs the benefits, that is, if the existing firms think that dealing with you is just a wast of resources The entrant can exploit conventional wisdom. Usually they would say: ,we make cars this way so why change?, So to work on our advantage we introduce an innovation. Existing firms’ cost of responding are great given the need to protect their existing businesses, that is, big boys don’t play with babies anymore. But what happened when Toyota tried to play around? 2010 Toyota Prius Hybrid, but it was mostly frowned and mostly doesn’t appeal the petrolhead market with its looks. The other big car companies did not retaliate or it wasn’t really obvious or it wasn’t at all directed to this move by Toyota. Honda had a hybrid too, right? There is a paternal dominant firm or tight group of longstanding leaders. Case in point, considering our car industry… We can expect a slow and ineffectual retaliation from the existing firms. Like The giants. Lower entry cost firm than others - see if getting in is reasonably cheap or at least affordable Distinctive ability to influence the industry structure - if you strongly believe that you can change the game why not. Look at Elton Musk. Positive effects on firm’s existing business - suppose you have an existing business, entering into another industry may be more feasible if the entry is a complementary to your existing business. Example, you have a bakery, you may want to enter into a flour milling business, this is want we call the ,backward vertical integration,, backward because you backed up in the process chain from bakery to flour milling, but if you entered into distribution of the bread from your bakery and entered into retailing that is ,forward vertical integration. Generic Concepts for Entry Reduce Product Cost Buy in with Low Price Offer a Superior Product, Broadly Defined Discover a New Niche Introduce a Marketing Innovation Use Piggybacked Distribution – funded by other business networks Guess who did numbers 3 to 6? UPDATE JULY 10, 2020: ,Talk about innovation and diversification, in the 30th of May 2020 SpaceX did it’s first ever crew launch to space. Another thing to note, and to future readers:, In December of the year 2019, a new strain of corona virus capable of infecting humans was detected in Wuhan Province of China. This virus can prove to be fatal to those whoever are already immune compromised, and has caused the whole world to cease most of it’s economic activities. And that, greatly, hugely affected the automotive industry, where they are compelled by the circumstances of cease production altogether. As the world was seemingly put to a great bus stop. Companies, especially those related to the transport industry, particularly airline companies had already declared bankruptcy. Despite the pandemic, some automotive manufacturing companies, such as GM, Ford, PSA (Peugeot, Citroën, DS, Opel and Vauxhall brands), Renault, as well as Formula 1 teams such as Mercedes-Benz, among others, helped in producing the much needed materials during the pandemic. These materials included face masks of all things, ventilators, and other medical equipment. Often retaliation is not too quick in the realm of the car industry, most especially in a particular segment. We can take advantage of that. UPDATE JULY 10, 2020: ,And then finally here it is, Porsche, after giving the world the concept for the Taycan in 2015, it was finally put to production and introduced to the market in 2020. That’s about 8 years after Tesla released the Model S in 2012. And as of this writing, it’s too early to tell whether Porsche was able to split the market, or not. UPDATE JUNE 22, 2021: ,Was is right for Porsche to wait that long before releasing the Taycan? As ,The Art of War of Sun Tzu ,said: When you come to a hill or a bank, occupy the sunny side, with the slope on your right rear. Thus you will at once act for the benefit of your soldiers and utilize the natural advantages of the ground. (IX:13) That means, if you’re going to fall back be sure to get the high ground, and do it with clear vision and step back on your best footing. It is advantageous to go up and have an overview of the enemy, see where they are coming from, and what their logistics are. On the competitive perspective, Porsche took a step back on what they know and further improve form there. Porsche had been racing in Le Mans, but since their relaese of the 918 hybrid, they stepped further with their game with 919 Hybrid. Using the knowledge gained from motor racing helped them—not only them but many other manufacturers—to develop their products, and innovate on their systems. Motor racing is a proving ground for these innovation. And the Porsche 919 proved to be very competitive, winning the World Endurance Championship in 2015, 2016, and 2017. Another advantage of Porsche for not hasting the release of their Taycan, and as Sun Tzu said: When an invading force crosses a river in its onward march, do not advance to meet it in mid-stream. It will be best to let half the army get across, and then deliver your attack. (IX:4) Porsche had to enjoy watching Teslas driving on the roads and closely studying them. And indeed they saw a disadvantageous traits of Tesla’s cars. Aside from panel gaps, and few other flimsy bits and pieces, their battery management isn’t quite on the longevity side. Tesla is going all out—but what do you expect from a new entrant, they have to be flamboyant and attract many eyes. Tesla’s systems allowed the batteries to be fully charged as well as fully drained, this causes some unexpected reduction of the battery’s life span and in turn reducing its range in the long run. Porsche saw it, and devised a system that will put their Taycan on a low power mode when the battery is on it’s critical level. So that driver is warned and is advised to charge as soon as possible while still having the ability to move the car. That, and few other things to help promote the longevity of their battery life. It’s not only Porsche who learned about better battery management, so did Peugeot, Renault, Volkswagen, and other manufacturers who are just developing their EVs learned that lesson. But then again, Elon Musk have a very interesting marketing style. For one, his company/companies doesn’t have a formal marketing division, he does all of it with publicity. So doing all those stuff even if it makes a little sacrifice on the longevity of his products pays off. It’s already 2021 now, and Tesla had already made a mark. I can tell you that this company is pushing for innovation, at some point leading in most of the innovation like self-driving or autopilot for example. It seems Elon Musk doesn’t bother too much about competition with the big auto manufacturers, but he is pushing everyone towards his vision. The bottom line is you only need few things as what Karl Marx considered as the most important resource in economics. LAND - ,as you need the plant to build your cars, and to fit your facilities , LABOR - ,as you need people to help you, but especially you need the brains of these people too , CAPITAL ,- well you know that part. Now you might say, ,Ah! It’s too complicated, I’ll never make it,. How about we… Enter Into the Industry Through Acquisition. The floor price created by the seller’s alternative of keeping the business is low - it’s simply as if you think you can make it still run better than the previous management and you think you can do it cheaper that they did it before, why not? The market for companies is imperfect and does not eliminate the above-average returns through the bidding process - This is when you play the game of risk taking, whether or not you would trust your abilities to buy the existing business at a cheaper price and make it profitable after few years The buyer has a unique ability to operate the acquired business - if you think you can turn this around, you may. Irrational Bidders - so a business is for sale, there are bidders but you can hire some, pay them to bid low so you can finally cut them all out. Or simply you can buy out the smaller irrelevant bidders. Didn’t we say acquisition? Well some purpose of acquisition is to explore a possibility without compromising the already established brand name. For example, Toyota, they are already known for cheap reliable cars, but they might like to explore creating a supercar, can they do that? That’s why they have Lexus, and they had the LFA, but mostly Lexus is an entry level luxury car. Also there’s GM, their variety is pretty wide from performance Chevies to Isuzu trucks. Or BMW, from driver Bimmers, to fun Mini, to luxurious Royce. So it’s up to you which strategy or combination you will implore. Hope you learned something, at least.

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