Upward Stretch

Companies at the lower end of the market might want to enter the higher end. They may be attracted by faster growth rate or higher margins at the higher end, or they may simply want to position themselves as full-line manufacturers. Sometimes companies stretch upward in order to add prestige to their current products. In stretching its product line upward, Toyota opted to produce two even more expensive models under the Lexus brand, to compete against BMW 5 and 7 series vehicles as equivalent Mercedes models.