Dysons Case Study

2689 WordsJan 11, 201211 Pages
1 Introduction In “Inside Dyson: a distinctive company?”, Shepherd et al. (2011) detail the secret of Dyson’s success, the company specializing in innovative, design-heavy vacuum cleaners and other household appliances. The successes and failures of Dyson’s design efforts (from their successful vacuums to the 3 in 1 vacuums that did not test well with customers) are detailed, as well as their unique perspective on business, which puts quality and innovation over all else. 1 Using frameworks from the chapter, analyse the strategic capabilities of Dyson. The strategic capabilities of Dyson revolve primarily around the a resource-based view of strategy, with a heavy focus on engineering design; they spend a tremendous amount of time developing and engineering prototypes for household products that provide some new trick or twist to the typical device (e.g. vacuum cleaners that provide smooth turning around corners, oscillating fans that “multiply” air). This creates a niche in what can be an overly-saturated market; providing a unique spin on a product can offer tremendous advantages. Combine this with state-of-the-art, sleek design elements and bright, colorful exteriors, and Dyson creates a number of high-end, well-sought after appliances. Dyson invests heavily in Chinese and Asian manufacturing in order to make their products more cheaply, so they can maintain profit margins. This emphasis on design in their organizational planning means not as many products go out, but what they do sell they can sell to a specialized market for higher prices. Given the innovation that is present in Dyson’s business strategy, it is quite clear that their strategic capability is high, though their risks can be high as well, due to the experimental and ‘out there’ nature of their products, which may be too daunting for normal consumers. 2 To what extent do you think any of the

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