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Programme MSc Management with digital marketing

Module Name Global strategy and sustainability
Student Reference BP0292724
Number (SRN)
Assessment Title Business Report
Word Count 1000
Date of submission 7-feb-2024

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Table of Contents
Introduction............................................................................................................................3
Task 1 -The External and Internal Environment.......................................................................3
External Environment Analysis................................................................................................3
Porter's Five Forces............................................................................................................................................3
PESTLE Analysis...................................................................................................................................................4
Internal Environment Analysis.........................................................................................................5
VRIO Framework................................................................................................................................................ 5
Competitive Advantage....................................................................................................................6
Task 2 – Strategy in the Global Environment...........................................................................6
Motives For Dyson’s International Expansion...................................................................................6
Impact on Dyson's Overall Strategy..................................................................................................7
Market diversification:....................................................................................................................................... 7
Innovation.......................................................................................................................................................... 7
Growth............................................................................................................................................................... 7

Strategic Options for Internationalization:..............................................................................7

Ansoff Matrix...................................................................................................................................7
Market Development.........................................................................................................................................7
Diversification.....................................................................................................................................................7
Product Development........................................................................................................................................ 7

Entry Strategies for Dyson.......................................................................................................8

Direct Exporting:.................................................................................................................................................8
Licensing and Franchising:..................................................................................................................................8
Joint Ventures and Strategic Alliances:...............................................................................................................8

CONCLUSION...........................................................................................................................8
References..............................................................................................................................8

LIST OF FIGURES
Figure 1 Dyson logo....................................................................................................................... 3
Figure 2 Porters Five Forces...........................................................................................................4
Figure 3 VRIO Framework..............................................................................................................6
Figure 4 Dyson Ansoff Matrix.........................................................................................................8

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Introduction

Founded in 1991 by Sir James Dyson, Dyson Ltd. is a prominent British firm
specializing in the creation of household appliances, including vacuum cleaners, air
purifiers, and hair dryers. The company is celebrated for its pioneering designs, superior
engineering, and dedication to innovation and quality.

Figure 1: Dyson logo

Task 1 -The External and Internal Environment

As a Management Consultant tasked with guiding Dyson's strategic upgrade for global
expansion into Europe, Africa, the Middle East, and Asia.

External Environment Analysis

Porter's Five Forces

Threat of New Entrants:

In Europe and Asia, high entry barriers due to strict regulations, significant R&D costs,
and strong brand loyalty towards companies like Dyson mitigate this threat (Porter,
1980). However, in Africa and the Middle East, the threat could be higher due to less
saturated markets.

Bargaining Power of Buyers:

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Buyers in developed markets (Europe and parts of Asia) have high bargaining power
due to access to various competitors and price-sensitive options. In contrast, in
emerging markets like Africa and the Middle East, Dyson can leverage brand prestige to
counteract buyer power (Kotler and Keller, 2016).
Bargaining Power of Suppliers:
Dyson's innovative supply chain strategy minimizes the bargaining power of suppliers.
By diversifying its supplier base and investing in in-house technologies, Dyson can
mitigate risks associated with supplier dependency (Choi and Hartley, 1996).
Threat of Substitutes:
Dyson’s focus on innovation and quality, however, creates a value proposition that can
reduce the attractiveness of substitutes (Porter, 1980).
Competitive Rivalry:
In Europe and Asia, Dyson faces competition from established brands like Bosch and
Samsung. The scenario is similar in the Middle East and Africa, where local brands also
pose competition. Dyson's strategy of differentiation through innovation and
sustainability can help it stand out (Porter, 1980).

Figure 2: Porters Five Forces

PESTLE Analysis

Political:

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Regulatory environments in Europe and Asia are stringent, with high standards for
energy efficiency and waste reduction. Dyson needs to navigate these regulations
effectively. Political stability in the Middle East and parts of Africa can be a concern,
requiring robust risk management strategies.
Economic:
Economic conditions vary, with Europe and Asia presenting opportunities in affluent
markets. Conversely, Dyson must consider the economic diversity in Africa and the
Middle East, offering premium products in affluent areas while exploring value offerings
elsewhere.
Social:
Social factors, including the growing emphasis on sustainability and health-conscious
products, play to Dyson's strengths. Customizing products to meet regional cultural
preferences can also provide a competitive edge.
Technological:
Investing in R&D to lead in innovation, especially in AI and IoT for smart home products,
can provide a significant advantage (Schilling, 2015).
Legal:
Compliance with local and international legal standards is paramount. This includes
labor laws, environmental regulations, and intellectual property rights protection, varying
significantly across regions.
Environmental:
Dyson's commitment to sustainability can be a major selling point. Environmental
considerations should influence product development and corporate practices (Hart and
Milstein, 2003).

Internal Environment Analysis

VRIO Framework

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The VRIO framework is applied to methodically assess a firm's internal assets and
capabilities, highlighting how these elements bolster its competitive edge. This analysis
aids in identifying the core competencies that Dyson can leverage for sustainable
growth and expansion into Europe, Africa, the Middle East, and Asia.
Value:
Dyson creates innovative products that stand out and meet customer needs, making the
brand highly valuable in the marketplace.
Rarity:
Dyson's unique technologies, like its powerful digital motors, are rare and set its
products apart from competitors.
Imitability:
Competitors find it tough to copy Dyson's advanced technologies due to its strong
patents and unique design expertise.
Organization:
Dyson is well-organized to leverage its innovations, with a global presence and a culture
that prioritizes rapid development and market introduction of new products.

Figure 3: VRIO Framework

Competitive Advantage

Dyson stands out in the competitive landscape mainly due to its commitment to
technological advancements, strong brand image, and a widespread distribution

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strategy. The focus on research and development is a cornerstone for Dyson, driving
the creation of innovative and high-performing products that distinguish the brand in a
saturated market. This strategy mirrors that of Apple Inc (Keller, 1993), where ongoing
product development and a focus on user experience maintain its position as an
industry leader. Similarly, Dyson's reputation for quality and innovation aligns with
Tesla's method of leveraging its brand for dominance in the electric vehicle sector
(Musk, 2018). Additionally, Dyson's approach to making its products readily available
through both direct sales and retail partnerships is reminiscent of Amazon's strategy to
enhance consumer access and convenience(Bezos, 2017). By continuously investing in
research, branding, and distribution efforts, Dyson ensures it stays ahead in
technological innovation and market presence.

Task 2 – Strategy in the Global Environment

Dyson’s International Expansion

Dyson's international expansion is strategically motivated by Yip's Drivers of
Globalization, focusing on market seeking, efficiency seeking, and knowledge seeking.
The company aims to tap into new, growing markets across Europe, Africa, the Middle
East, and Asia to broaden its customer base and increase sales (Yip, 1992). Efficiency
seeking drives Dyson to optimize production costs and supply chain efficiencies,
capitalizing on regions offering competitive manufacturing advantages. Additionally, the
pursuit of knowledge, through exposure to diverse markets and consumer preferences,
fuels Dyson's continuous innovation and adaptation of products to meet localized
needs, enhancing its global competitiveness (Yip, 1995).

Impact on Dyson's Overall Strategy

Dyson's international expansion impacts its overall strategy in several ways:

Market diversification: By expanding internationally, Dyson reduces its dependence

on any single market.

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Innovation: Exposure to diverse markets can stimulate innovation by providing new
ideas and challenges.
Growth: International expansion provides opportunities for growth and increased
revenues.

Strategic Options for Internationalization:

Ansoff Matrix
This model presents four different growth strategies. For dyson these strategies are
considered as

Market Development
Dyson could consider this strategy for entering Europe, Africa, the Middle East, and
Asia. This could involve establishing new distribution channels, creating strategic
partnerships, or acquiring local companies.
Diversification
Dyson, known for its innovation, could consider developing new products tailored to the
specific needs and preferences of consumers in these regions.
Product Development
While this strategy may not directly apply to Dyson's internationalisation, it could be
used in conjunction with market development or diversification. For example, Dyson
could make innovations in its present markets, then introduce these product to its new
markets.

Figure 4: Dyson Ansoff Matrix

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Entry Strategies for Dyson

Here are three potential strategies Dyson can apply.

Direct Exporting: Selling directly in target markets allows Dyson to maintain close
customer relationships and control over its sales process, although it requires significant
investment and bears the risk of non-payment(Hollensen, 2019).
Licensing and Franchising: This low-investment approach gives Dyson access to
local markets with reduced risk but limits control over the brand and product quality.
Joint Ventures and Strategic Alliances: Partnering with local firms provides valuable
market insight and shared risks but may lead to management challenges and reliance
on partners(Peng, 2016).

CONCLUSION
This report is based on a case study, To summarize, the strategic exploration for
Dyson's international growth emphasizes the critical need to analyse both external and
internal factors. Utilizing frameworks like Porter's Five Forces and PESTLE helps Dyson
to adeptly assess the challenges and opportunities of entering markets across Europe,
Africa, the Middle East, and Asia. The internal assessment through the VRIO model
reveals Dyson's distinct strengths, which form the foundation of its competitive edge.
Strategic pathways identified through the Ansoff Matrix, such as market development
and diversification, suggest actionable routes for expansion. Additionally, strategies like
direct exporting, licensing, or creating partnerships are pivotal for Dyson's global
outreach. This holistic strategy framework positions Dyson to enhance its innovation
leadership and extend its global footprint effectively.

References

 Ansoff, H.I. (1957) Strategies for Diversification. Harvard Business Review.

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  Porter, M.E. (1980) Competitive Strategy: Techniques for Analyzing Industries
and Competitors. New York, Free Press.

 Hill, C.W.L., Hwang, P. & Kim, W.C. (1990) An eclectic theory of the choice of
international entry mode. Strategic Management Journal.

 Barney, J. (1991) Firm Resources and Sustained Competitive Advantage.

Journal of Management.

 Yip, G.S. (1992) Global Strategy... In a World of Nations? Sloan Management

Review.

 Kogut, B. & Zander, U. (1993) Knowledge of the Firm and the Evolutionary
Theory of the Multinational Corporation. Journal of International Business
Studies.

 Root, F.R. (1994) Entry strategies for international markets. Lexington Books.

 Yip, G.S. (1995) Total Global Strategy: Managing for Worldwide Competitive
Advantage. Prentice Hall.

 Choi, T.Y. & Hartley, J.L. (1996) An exploration of supplier selection practices
across the supply chain. Journal of Operations Management.

 Hart, S.L. & Milstein, M.B. (2003) Creating sustainable value. Academy of
Management Executive.

 Rugman, A.M. & Collinson, S. (2012) International Business. Pearson Education

Ltd.

 Schilling, M.A. (2015) Strategic Management of Technological Innovation.

McGraw-Hill Education.

 Kotler, P. & Keller, K.L. (2016) Marketing Management. Pearson Education.

 Peng, M.W. (2016) Global Business. Cengage Learning.

 Hollensen, S. (2019) Global Marketing. Pearson Education.

 Kotabe, M. & Helsen, K. (2020) Global Marketing Management. Wiley.

 Dyson (2021) About Dyson .

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