Home Assignment 2: Dyson

Chaima Ghodbène

Strategic management

Home Assignment 2: Dyson

MSB - Mediterranean School of Business 2019-2020

Home Assignment 2: Dyson

Question 1 : Using frameworks from the chapter, analyze the strategic capabilities

of Dyson.

The strategic capabilities of the company are about their resource-based view of this

strategy while focusing on engineering design. In fact, the company spends lots of time

and energy in order to develop and engineer prototypes for households’ products that

slightly differ from the typical device that is being commercialized. A good example

would be the vacuum cleaner that has a plus compared to traditional vacuum cleaners; it

provides smooth turning around the corners. The products offered by a company are

essentially dedicated to a niche market that is among a saturated one. The design of the

products, as well as their brightness and colorful exteriors are what attracts this niche

market.

In order to make their products cheaper, Dyson invests in the Chinese and Asian

manufacturing which allows them to maintain a profit margin benchmarks. Overall, their

strategic capability is high. Their products might not be dedicated to “normal” consumers,

but they do have a significant niche market.

Question 2 : to what extent do you think any of the capabilities can be imitated by

competitors ?

I think that it is quite difficult to imitate the strategic capabilities of the company because

of their well-established niche market that is mainly there because of the superior design

of the products that the company offers. Dyson is very flexible to change, and they are

focusing on innovation and they are not afraid to test new design of products. Their level

of specialization is what attracts their customers. For other companies, to imitate Dyson,

they will have to hire very well experienced engineering designers and train them to be

flexible to innovation and change.

Home Assignment 2: Dyson

In addition to that, Dyson has placed preventive patents on their product to stop other

companies from imitating their ideas.

Question 3 : which of Dyson’s distinctive capabilities may become threshold

capabilities over time ?

Today, what is allowing Dyson to position itself as a relatively high price company is the

high quality of its product translated in the design and engineering. This is what allow the

company to stand as a distinctive one in the market. However, as time goes on, the

existence of high value specialties will probably become a threshold capability for the

company.

It would certainly not be beneficial for the company to change its business model and go

for increasing volumes and standardize the products because it will probably affect its

reputation and brand image. For that reason, in order for the company to keep its

position , they will always have to invest in innovation and be the first mover in the

market.

Question 4: Bearing in mind your answers to questions 1 and 2 , how crucial is Sir

James Dyson to the future of company ? what might be the effect of his resignation

or the sale of the company ?

James Dyson is a big public figure and a well-known spokesperson for the Dyson

company. The company’s reputation is mainly based on him. The company would

certainly not be the same without him. His creative mindset and innovation seeking are

key elements for the success of the company. Him leaving would probably also mean lost

partnerships and affiliations. At some point, he will certainly leave the floor to others to
Home Assignment 2: Dyson

run out his company. The person in charge will have to maintain his level of creativity

and cherish his values and the values he wants its company to represent.