Some smaller car makers in Japan like Mazda and Subaru are facing a serious problem that it seems that the car market, at least in Japan, has been occupied by three giants(Toyota, Nissan and Honda). These “second-line” brands are struggling between being purchased and breakdown. However, some companies choose a clever differential strategy which resurges them to some extent. It is essential that they know their companys’ drawbacks clearly and turn the disadvantage into a new chance to make some differences. One example is that Mazda’s decision some years ago not to develop costly hybrid or fully electric power trains in favor of pioneering its “SkyActiv” technology, which greatly improves the efficiency of petrol and diesel engines.
In my point of view, this kind of change is a combination of disruptive innovation and differential strategy. For these smaller car makers, it is their opportunity to find the gap between the high-end products and the special need for the society. Furthermore, targeting the market aboard is also strategy with a lot of risks. It will take time to investigate people’s need in another continent and there is a risk that the high import taxes will enhance the price which may make the production less competitive.
However, if the company is not strong enough to occupy a certain part of market, it is necessary to find out the most appropriate strategy to cater a different customer segment and try to figure out a way to survive in this dilemma.
materials from: http://www.economist.com/news/business/21627722-japans-small-car-firms-are-defying-industrys-get-big-or-die-imperative-lots-oomph
picture from: https://www.google.ca/search?q=mazda&rlz=1C1CHWL_zh-CNCA609CA609&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ei=8qdNVIm-EYWyoQT0u4HQCA&ved=0CAcQ_AUoAg