It is interesting to compare the model/engine variants Lexus have when compared to the likes of BMW/Audi/Merc.
However it is important to have a grounding in the history of the brand, and where the corporate strategy was initially focussed.
Essentially it stole the market in the USA, by being the best cost leader, leading the way in added value engineering that BMw and MErc had grown complacent in. They rested on their laurels and traded a great deal on brand image. ANd so lexus stole a march on them.
However over the years, the prestige companies reevaluated their supply chains,as did the whole industry, and it became increasingly difficult to secure competitive advantage based on cost leadership--imitation levelling the playing field.
Fortunately for Lexus the SUV was another massively influential and dominating model that established their position.
Obviously there are more factors such as the establishment of Specific dealerships in the USA, CRM above and beyond, reliability etc that were involved, but it is also interesting to note that Europe was almost a sideline consideration in respect of the massive usa market.
The concentration on very few variants gave better reliability/costings etc, but it is well recognised that a big factor in the limited european success was the lack of a diesel engine--hugely popular in europe, but virtually unheard of in the states.
Another factor is, of course, fortress bavaria!
Bmw has diversified its product range from the 1 series to its own suv line-up, its own M division and large model variants, notwithstanding its Mini success, and is regaining its position over Lexus. However its reliability and dealership experience still has some way to go.
With the global downturn in the fortunes of the huge carmakers, the consolidation of modular platforms (eg vectra/saab) and extremely incestuous supplier markets, lexus will have to capitalise on the hybrid technology (beating GM by quite some margin), look at the massive potential in the Indian and Chinese markets, and look at taking on fortress bavaria by offering the europeans what they want (which is a completely distinctive market to the american one).
Suggestions would be a M/AMG/Type R variant for their product line up, and diesel/hybrid extensions to stave off the impending green/oil issues.
Unlike politicians, Lexus/toyota are in a postion to think and act long term in these areas, but they need to gain european credibility, which is only gained by having a far bigger presence.
It certainly makes you wonder if Lexus GB/ Japan actually visit the LOC :D