Toyota's risky strategy

I've been reading Daniel Esty's Green to Gold, a book on creating value with good environmental strategy. In contrast to Ford's decision to lower cost and quality to remain competitive (see my post on Gov. K's incredible hulk), in the early 90's Toyota made the risky decision to focus on energy efficiency and build the Prius, a gas-electric hybrid car. Here's what the book had to say about how Toyota became the now #2 auto manufacturer in the world:

"Toyota saw the Green Wave coming and responded. The company promoted value innovation and ended up with a breakthrough product that enhanced profits and sustained shareholder value. That's what EcoAdvantage is all about."