LONDON CAMPUS

CASESTUDY

ON

DYSON: A DISTINCTIVE COMPANY

Subject: Sustainable Strategy
Submitted By: Varun Jain - 3962291 Aneez Panakkal Dhayal Jivani Lecturer: Groucutt Jonathan

Case study : Dyson “A Distinctive Company” Q1.) Analyze the strategic capabilities of Dyson? Dyson: threshold resources • engineering design equipment • product supplies • manufacturing space • offices and facilities • appropriate personnel • sufficient customers (installed base) Dyson: threshold competences • • • • • general mgmt skills including distribution & marketing engineering design skills cost control through manufacturing in low-cost locations quality assurance and control the ability to attract customers sufficiently inspired by design to pay premium prices across different markets Dyson: distinctive resources • James Dyson himself • the Dyson brand and strategy of high-end products in an otherwise staid market • an HQ building and related laboratories designed to foster innovation • product portfolio and associated patents • high R&D budget possibly through being privately owned • history company used extensively in PR & advertising • ownership of the manufacturing facilities and hence control over the working conditions of the employees versus other companies that contract out their manufacturing and can be accused of supporting poor labour conditions Dyson: distinctive competences • inspirational leadership around the value of engineering • design engineering skills that transform ideas into viable products • competence to make engineering aesthetically attractive • seamless value chain despite design and manufacturing being in different locations • being one step ahead of competitors attracting early adopter customers and subsequent followers including premium pricing .

” (Varun Jain) . hands-on mgt style I: linked activities within Dyson / path-dependence N: none in sight. always being surprising Q2: Can Dyson’s capabilities be imitated? • • • Focus on truly distinctive! – Apply VRIN V: Many valuable capabilities (even threshold) R: Not products themselves – Competitors have imitated products – But: innovative culture.• never being boring. “IT IS NOT NECESSARY TO BE A INNOVATOR IN THE MARKET . but innovative culture could help to protect in the future • • Q3: departure Sir Dyson? • • • Compare to Apple & Steve Jobs! – Hands-on mgt style without Dyson? – Aura of company that commands price premium without Dyson? – Ultimate source competitive advantage Bring exclusivity to market – customers willing to pay more to be different and ahead of the crowd even regarding an object as mundane as a vacuum cleaner. THE IMPORTANCE IS OF WHAT STARTEGY IS ADOPTED TO SUSTAIN IN THE MARKET.

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