Module: Corporate Strategy
Assignment subject: Dyson - a distinctive company
Produce a written report to complete the next:
- Analyse the existing position of the company with regards to its environment and competitors.
- Evaluate the tactical options now available to the company.
- Recommend the proper route forward and the techniques for implementation of your chosen options.
Companys Profile
Dyson Ltd. is a United kingdom, private company founded in 1991 by James Dyson. Headquarter in Malmesbury, Wiltshire, UK. Its a technology company which design and produces floor cleaners, heaters, hands dryers, bladeless lover and bridegroom tools. Dyson Ltd. becomes global company by offering its products in over 50 countries such as Canada, Spain, France, Belgium, Netherlands, and Germany. However, opt to export in competitive marketplaces like USA, China and Japan. Although, Dyson Company survives into competitive markets and the profit of it, commence to go up even more each year.
Part A: Companys Current Position
Dyson is a company which created by a concept to improve vacuum cleaners with no handbags. Couple of years later become one of the biggest reselling company in Britain. Although, that company stood into the market and make a good reputation with its brightly coloured floor cleaners. So, Adam Dyson chooses to broaden his company by exporting to other countries. Firstly, decide to place the production part of floor cleaners to Malaysia and his side dryers to China. As he said, he had a need to follow his opponents to lessen cost creation as margin were being consumed. (Inside Dyson, Jill Shepherd & Simon Fraser). Furthermore, Dyson become a global company by providing its products in over 50 countries, even thought to the countries which participate in a highly competitive market segments, like USA, China and Japan.
However, that company for the very beginning has something different; the creative and unique ideas of James Dyson. So, he attempts to place the company into another market position than his challengers. Dyson Company has its strategy to produce innovative products with bright colours to get easier the group and stick out to the market. Moreover, Dyson promote its products like new, different with a radical change. As the principle executive of the business said Our success is down to the new idea and the work of teams round the world. (Finch, J. 2010).
Internal Evaluation: SWOT Analysis
In addition to PESTEL and Porters 5 Causes analysis, by doing SWOT examination through strengths, weakness, opportunities and hazards can more easily understand the positive and negatives of Dyson. Although, through that analysis the existing position of Dyson is more certainly.
Strength
Innovation: The main strength of the company. James Dyson feels that innovation is a means of life. So, he adopts that notion into his working environment. Company use technology to produce its products and make the peoples life easier. Actually that company turning the ideas to working machines so simple simply by working hands with technology by their side. From bag less floor cleaners to energy conserving and time useful dryers to desk enthusiast with no rotor blades.
Design: Progressive product is good but combine it with a great design makes it better still. Dyson concentrate on the design led marketing. The products are design with shiny colours to gain the interest. Because of the overdue of 1990s floor cleaners became fashion item. (Doole, I & Lowe, R. 2010)
High quality: Because of the innovation and the great design the merchandise of Dyson have high quality. So, each product has 3-5 years warranty which is the longest warrant in the complete industry. (dyson. com)
James Dyson foundation: Adam Dyson by that foundation tries to encourage the teenagers to become design engineers of the future. That base makes him more popular and attracts the interest of people to buy his products. (dyson. com)
Employees: One company to reach your goals must have great employees too. Dyson now has 2. 600 engineers and experts worldwide; some of them are very experienced and some others are fresh. However, Adam Dyson gives the opportunities to everybody because he wants people by his area that are creative and thinkers. (dyson. com)
Research & Development: Dyson Company is based on research and development. The company support that is better to get into R&D somewhat than advertising because R&D is the best way to produce the merchandise with high quality which is subject most. So, without the quality which 's the reason to advert? (times100. com)
Weaknesses
High Prices: is one of the serious weaknesses of the company. Dyson due to the high quality, ground breaking products have quite high prices than the rivals. For example by looking at into online stores, the costs for Dyson is from Ј200 and above against Hoover, Vax which start with the price of Ј80 and above. So, that increase the competition because is rely upon people how much are willing to pay.
Copy patterns: Hoover copies the idea of Dyson about the carrier less vacuum. As a result Dyson sue the Hoover and attack on the court docket about the possession. That, damages a little the image of the business because the products can easily duplicate. However, small companies can grab the idea and produce the same product with lower price, but of course the product quality won't be the same. (Buncombe, A & Arthur, C, 2000)
Washing machine inability: James Dyson following the great success of vacuum cleaners decides to design a new, progressive washing machine. That contrarotator washing machine had not been so successful because made a reduction instead of revenue to the business. Actually, the price tag on the machine was lower than the development cost and the company could not generate profits of it. (Gross, P. 2012) (Western M, R. 2005)
Opportunities
Global extension: Dyson is a company that reselling its products in over 50 countries; so that it becomes a global company. First of all by export globally the profit of Dyson doubled. The business generate a good image brand. The enlargement also really helps to compete easier with the opponents. (Russell, J. 2010). Moreover, China became the most effective growing market in Asia for vacuum; Dyson achieved to endure in a highly competitive market and be successful. (Quaoyi, L. 2013)
Meet customers needs: Dyson mission is simple, find way to everyday problem to help make the life of people easier. By that customers could trust more the business therefore to become loyal.
Economy of scale: Company by 2000, with a rise of sales of Dual Cyclone vacuum cleaner has grown into the marker domination. Dyson sell to UK 100, 000 models per month and turn into the leader on the market of European countries with 20% of the market. (Jones, T. 2002)
Threats
Competitors with high brand electricity: Dyson by coming into the marketplace it must face lot of rivals with already high brand image and vitality. It has to fight hard in order to overcome then because customers are difficult to change their loyalty. A number of the biggest competition are Hoover whos the name of the product become synonymous with the business. Electrolux, which provide an array of vacuum cleaners with different consumption. Furthermore are, Bosch, Miele, Vax and SEB group.
Cheaper carrier less vacuum cleaners: Smallest companies has copy the thought of the bag less vacuum cleaner and sell them in cheaper price. That can attract people because they're going to save money if indeed they buy this one instead of the Dyson. But if Dyson keep carefully the high quality of its products there exists anything to fearful. (Jones, T. 2002)
Micro Environment: Porters 5 Forces
Threat of new entry:
Dyson Company in a short term period achieved a higher income in UK and much more in the global market. That is quite remarkable for an organization with a great deal of competitors with a brandname power. Additionally, Dyson has differentiated its products from its rivals by using innovation and industrial design. (Mangham, C. 2006) So, it concentrates more for the product quality rather than the prices like its competitors. As a result of that, company been successful on the market. However, low cost suppliers start joining the marketplace but because of the high obstacles of entrance, are difficult to defeat a business with a brandname power. That occurs due to the high expenses to create a graphic in a competitive market; they are newcomer plus they do not have the qualified experience to the. Also, the reduced quality with their products cannot ruin the devotion of the clients.
Micro Environment: PESTEL
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