When you have a project, pour in the necessary resources
Whether a small or an ambitious one, projects which do not have enough ressources allocated are bound to fail
Ten years after the first introduction the premium Lexus line on the US market, the Toyota-owned Japanese premium brand was leading the luxury market with greater sales than Cadillac, Lincoln, BMW and Mercedes-Benz.
The combination of brilliant marketing decisions and implementation had a lot to do with that success; but it is the daring boldness of Toyota’s top Management that had made everything else possible :
For its first Lexus, Toyota gave their 1,400 engineers and 2,300 technicians and blank check. To give some perspective, that was about over a half of number of people assigned to work on the first Boeing 777 jumbo line in the 1990’s.
The first Lexus took six years and one billion dollars to build.
Source : The secrets of Lexus’ success: how Toyota motor went- From zero to sixty in the luxury car market, Columbia Business School, 2005
[Many people] think it means accept failure with dignity and move on. The better, more subtle interpretation is that failure is a manifestation of learning and exploration. If you aren’t experiencing failure, then you are making a far worse mistake: You are being driven by the desire to avoid it. And, for leaders especially, this strategy — trying to avoid failure by out-thinking it — dooms you to fail.
Differentiation between products is driven by the activities of the firm: product design, product performance, quality, branding, advertising, distribution, and so on. The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand. So, Starbucks can charge $3.50 for a cappuccino, Hermès can charge $10,000 for a Birkin bag, and they can do so largely irrespective of input costs.
A company shouldn’t get addicted to being shiny, because shiny doesn’t last.
Any goal can be pursued in a variety of ways. It is the job of strategy to choose the most effective course of action for attaining objectives.