Toyota Motor Corporation introduced its luxury car under the brand Lexus in 1989 in the United States, where it became a strong competitor to Mercedes, BMW, Cadillac and Lincoln. Toyota's strategy of creating an upmarket brand through Lexus was a classic case of product positioning. The brand's core value proposition was to provide a luxury experience through engine performance and reliability, and product design, branding, and customer service. The Lexus subsidiary forked away from the rest of the organization, had a separate P&L account, clear mandate, and individual reporting lines, and did not share resources with any of the company's other divisions. Lexus's product development teams relied on data and feedback from a market research team working only for the Lexus division, and they created a niche by offering different marketing and after-sales services than Toyota. The product development team made a conscious decision not to go Japanese with the marketing campaign. Toyota wanted Lexus to be a global brand, and its tagline "the relentless pursuit of perfection" hinted at its Japanese roots. Lexus's national account was subdivided into regional accounts with dedicated customer relationship teams. The teams carefully chose and designed the local dealerships that would exclusively sell Lexus models, and sponsored opera performances, jazz concerts, fashion shows, and wine tasting events. Market research also shed light on the consumer behavior of luxury automobile buyers. Lexus management tackled this issue in three ways: by introducing improvements in the new models, by keeping in constant touch with existing customers, and by creating a certified pre-owned vehicle sales program.

How do the following theories relate and connect Lexus?

1. Business Strategy
2. Cost Management
3. Differentiation Strategy
4. Blue Ocean Strategy
5. Innovation Strategy