So you've got a great product. It's great, all the kids love it. It's selling like mad. What do you do? Decrease the supply so you keep the demand up and don't dilute your core. It does make sense to me… but it's still such a tough sell. Our approach is short-term… demand will eventually die so let's sell the crap out of it until everyone has one, then let's sell them two! A long-term plan such as this risks everything… competition, taste, the weather, the price of gas. Do American Executives has the cahonies to take this strategy to their boss nowadays? I think they'd find themselves looking for another job if they did.
A nice narrative about the evolution of Scion and Toyota, found on A VC. Comments welcome!