Programme MSc Management

Global Strategy and

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Sustainability

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Student Reference Number (SRN) BP0292719

Report/Assignment Title Global Business and Strategy

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Table of Contents

Introduction......................................................................................................................................4
The External And Internal Business Environment..........................................................................5
The PESTEL Model.....................................................................................................................5
Political Factors............................................................................................................................5
Economic Factors.........................................................................................................................6
Social............................................................................................................................................6
Technological Factors..................................................................................................................6
Environmental Factors.................................................................................................................7
Legal Factors................................................................................................................................7
An Examination of Porter’s Five forces..........................................................................................8
Threat of New Entrants................................................................................................................8
Bargaining Power of Suppliers....................................................................................................9
Bargaining Power of Buyers........................................................................................................9
Threat of Substitutes....................................................................................................................9
Competitive Rivalry...................................................................................................................10
Internal Environment Analysis......................................................................................................10
The VRIO Framework...............................................................................................................10
Rare............................................................................................................................................11
Inimitable...................................................................................................................................11
Organized...................................................................................................................................11
Strategy in the Global Environment..............................................................................................12
The Yip Strategy........................................................................................................................12
Dyson’s Market Entry Strategy..................................................................................................13
Corporate Strategy.........................................................................................................................14
Enhancing Supply Chains using Corporate Approaches........................................................14
Recommendations to Improve Dyson’s Supply Chain Management....................................15
Profitability Model for Dyson................................................................................................15
Strategic Purpose - Ethics and CSR...............................................................................................16
Carroll's CSR Pyramid and Dyson's CSR strategy....................................................................16
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Analysis of Stakeholder Theory.................................................................................................17

Ethical Concerns........................................................................................................................18
Recommendations..........................................................................................................................18
Recommendations for Supply Chain Management Efficiency..................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
Appendices....................................................................................................................................23
Appendix 1.................................................................................................................................23

List Of Abbreviations

CSR- Corporate Social Responsibility

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Introduction

Specializing in contemporary home appliances, Dyson is a well-known technology business

with developing ties to Europe, the Middle East, and Africa, suggesting room for strategic

expansion. The company has created a unique niche in the consumer discretionary products

industry, which is valued at over USD 1.3 trillion as of 2022 (Bloomberg, 2023). Some of its

best-selling products include bagless vacuum cleaners, bladeless fans, and hair dryers. Dyson’s

success is well embedded in its commitment to cutting-edge technology and unique product

design backed by a relentless research and development department. Although Dyson is the

leader in innovation and brand recognition, the company faces stiff competition from established

players in the global market like Electrolux, Whirlpool, Samsung and LG Electronics with

14.1%, 10.2%, 7.8% and 5.4% market share (Statista, 2023). Undoubtedly, Europe, Africa, the

Middle East and Asia offer a compelling market, with a significant percentage of population in

these regions reporting a growing middle class with rising disposable incomes category, a factor

indicating a potential for increased consumer spending on premium home appliances like those in

Dyson’s portfolio. These regions also boast increasing urbanization, ultimately creating a demand

for efficient appliances. This demand aligns perfectly with Dyson’s innovative designs.

Moreover, a growing awareness of ethical and environmental issues in these regions presents a

palpable opportunity for Dyson to capitalize on their sustainability and energy efficiency

strategies. Offering key insights from a strategic management perspective, this report aims to

analyze the market potential for Dyson's goods in the Middle East, Europe, and Africa through

external and internal business environment analysis, as well as CSR strategy analysis.
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The External And Internal Business Environment

The PESTEL Model

The PESTEL model is a strategic tool designed to identify and analyze factors in the external

business environment that can impact a firm’s performance in a specific industry. These factors

are categorized into political, economic, social, technological, environmental, and legal factors.

Figure 1: The PESTEL Framework

Source: Paul (2023).

Political Factors

As a globally expanding company, Dyson must carefully consider the diverse political

landscape in Europe, Africa, the Middle East, and Asia. For example, Europe presents a complex
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political landscape due to the European Union and individual member states having different

requirements regarding regulations and trade agreements (European Commission, 2024). In

Africa, political instability and other aspects of governance across the continent can prove

challenging to maneuver, especially regarding establishing and maintaining a consistent

operating environment (World Bank, 2024).

Economic Factors

Some of the economic considerations to consider include the economic development;

including indicators like GDP and consumer spending. In addition, economic growth, inflation

and currency exchange rates in different countries affect the purchasing power of customers and

investment opportunities (Chaudhry et al. 2022). In case of a recession, Dyson could decide to

promote affordable goods or motivate sales. However, in the event of an economic boom there is

a chance for gaining more market share.

Social

The success of Dyson relies heavily on the needs and preference of the customer, and it must

therefore strive to understand the evolving demographics in Europe, Africa, Middle East and

Asia as these shape product design and marketing strategies. According to Çitilci and Akbalık

(2020), demographic trends, consumer preferences and cultural values and norms affect demand

and marketing strategies. Dyson has to incorporate this insight by designing products with eco-

friendly materials and with power efficient products.

Technological Factors

Dyson’s success is largely attributed to innovative technology and engineering in this

field. Therefore, keeping up with shifting dynamics in technology and AI is a necessity. To

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continue being a market leader in the use of new technologies backed by intensive research and

development, the company must remain abreast with consumer preference and cutting-edge

technology for the supply chain.

Environmental Factors

There is a growing trend in various regions towards minimizing carbon footprint through

initiatives such as utilizing renewable energy in facilities. Considering these initiative and

collaborating with communities to achieve environmental sustainability can help strengthen

Dyson's credibility and appeal to socially responsible consumers and investors. This reflects

astute assessment of the rapidly evolving social license to operate in business.

Legal Factors

Dyson must adhere to employment, tax, product safety as well as intellectual property

regulations of the countries they operate in. Some regions, such as Europe, require companies to

conduct extensive certification trials while patent applications have to be constantly filed because

of the changing legal frameworks across borders. In this manner, Dyson could anticipate legal

compliance issues emanating from geopolitical factors through carrying out expert advice and

legal risk assessments.

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An Examination of Porter’s Five forces

Figure 2: Porter's Five Forces

Source: Mind Tools (n.d.).

Threat of New Entrants

The threat of new entrants in the consumer electronics industry is moderate. The industry

demands high initial investment costs in research and development, establishing distribution

channels and brand building. However, the impact of technological disruption and niche players
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poses a threat. The increased rivalry for customers and market share could see some brand

switching. New firms introducing disruptive products simultaneously challenge Dyson's ability

to anticipate changes and stay ahead of the market

Bargaining Power of Suppliers

Given Dyson’s diversified supplier based, the bargaining power of suppliers is moderate

as this reduces dependence on a single supplier. Despite this advantage, the specialized nature of

some raw materials and components price fluctuations could grant some suppliers bargaining

power. In order to mitigate these risks, Dyson must diversify its supply chain and proactively

manage relationships to preclude suppliers from wielding disproportionate bargaining power.

Bargaining Power of Buyers

This segment could be categorized as moderate-to-high as Dyson targets the premium

segment where buyers are less price-sensitive. However, this demographic of consumers expect

constant innovation and high-quality products at affordable prices and a seamless experience. By

not keeping pace with these ever-changing preferences could see Dyson products lose their

market share to their competitors. Dyson must intimately understand shoppers and continuously

reinvent to retain their market share.

Threat of Substitutes

The rapid technological advancement in alternative cleaning solutions like robot vacuums

emerge with competitive functionalities, making this segment “moderate”. Dyson’s focus on

innovation and uniqueness differentiates their products. However, cost-effective substitutes

could pose a threat in the future. Dyson must rush to pioneer such innovations and defend
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categories from emerging substitutes threatening purchase frequency and to ensure that a

sustainable competitive advantage.

Competitive Rivalry

Dyson faces intense competition from established players like Whirlpool, Samsung and LG,

and these companies offer a diverse range of products at various price points. Competition from

regional and niche brands in markets such as Europe and Asia could affect the companies

success in the same markets.

Internal Environment Analysis

The VRIO Framework

The VRIO framework can be used to assess a company’s internal resources and capabilities in

order to determine their competitive environment.

Valuable

One of the factors is a valuable domain which focuses key elements that grant a company

competitive advantage. Dyson boasts of a strong brand reputation, advanced technology and

efficient operations. Dyson is recognized for the innovative and high-quality products that help

drive brand loyalty and premium pricing power. According to Dyson (2022), approximately half

of Dyson’s workforce comprises scientists and engineers, making their research and

development a major advantage.

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Rare

Dyson is known for its unique technological capabilities, strong distribution network, and a

highly skilled workforce. The company possess distinctive expertise in product design and

applied engineering and patents resulting from their massive R&D investments.

Inimitable

Although there exists similar products on the market, Dyson is driven by an intense innovation

culture, which makes it difficult for competitors to consistently match their rate of technological

advancement. In combination with proprietary knowledge, their technologies and manufacturing

processes are protected by patents.

Organized

Dyson’s strong leadership, effective resource allocation and strong organizational culture aids

the company to maintain a leading position in the consumer discretionary products industry. The

company allocates resources efficiently towards research and development, marketing and

production to support strategic goals. These resources and capabilities help create a strong

foundation for competitive advantage.

Overall, despite their uniqueness, companies like SharkNinja and Miele share similar resources

and capabilities including a focus on high-quality, premium products, advanced technology in

their appliances, and strong brand recognition. To maintain it’s a competitive advantage, Dyson

should continuously invest in R&D to stay ahead in innovation, explore new product categories

and markets for growth, and further strengthen the brand image through impactful marketing and

customer service.
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Strategy in the Global Environment

The Yip Strategy

Yip (1995) identified four factors that are driving globalization: market, competitive, cost, and

government forces. This is shown in the following figure;

Figure 3: A brief overview of Yips International strategy

Source: Google images

Competitive and market forces have contributed to Dyson’s growth as the company expands

into countries with a strong demand for efficient, time-saving, and innovative tools for everyday

practical use such as the US and UK. Thus, new market possibilities are a strong motivator,

coupled with the commitment to make the best products to outperform rivals. Market drivers

include the amplification of consumer demands and preferences, the standardization of markets,
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and the establishment of transferable markets for standardized goods (Mintzberg, Ahlstrand and

Lampel, 1998).

Dyson’s Market Entry Strategy

Dyson employs a hybrid strategy consisting of direct or indirect entry and market adaptation.

Depending on the market, Dyson can set up local subsidiaries or forge partnerships with

distributors and retailers. The decision is primarily based on factors like market complexity,

regulatory considerations, and existing infrastructure. In some cases, Dyson adjusts product

designs to suit local preferences.

Dyson has three viable entry strategies that it may use to enter the lucrative markets of

Europe, Africa, Middle East and Asia.

 Dyson may enter the four regions by forming strategic alliances with distributors and

retailers, capitalizing on its innovative products and well-known brand to gain market

share. In order to capitalize on the increasing middle class and strong demand for

high-end home appliances, Dyson should pursue a direct sales strategy in the

continent's major cities.

 Dyson can leverage e-commerce to expand into new markets, using the established

supply chain. In order to reach a wide range of consumer segments throughout the

regions, Dyson can use a multi-channel distribution strategy in that combines online

sales platforms with physical locations.

 Strategic partnerships, which focuses on an outside-in perspective can help the

company solve the paradox of markets and resources. Partnering with other businesses
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can help Dyson save costs; for example, partnering with international shipping

companies can help solve the logistics challenge.

Corporate Strategy

Dyson’s efficient supply chain management system enables the business to quickly adapt to

changes in consumer demand, launch novel products onto the market, and maintain a competitive

edge. However, in order to maintain its competitiveness in the global market and carry on with its

expansion, Dyson needs to constantly improve its global supply chain. This section explores how

corporate strategies such as strategic alliances, outsourcing, vertical together with horizontal

integration, and integration may enhance Dyson's supply chain.

Enhancing Supply Chains using Corporate Approaches

The following approaches may be applied in improving supply chains;

1. Horizontal Integration:

By purchasing or combining with businesses in complementary industries, Dyson can enhance

its supply chain horizontally. Purchasing logistics firms or components makers, for instance,

might simplify processes and lessen reliance on outside vendors.

2. Vertical Integration:

This refers to the ownership or management of various phases of the supply chain, starting from

the procurement of raw materials and ending with distribution. Dyson may vertically incorporate

and increase its control over expenses and delivery schedules together with product standards by

acquiring distributors or suppliers.

3. Outsourcing:
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Through the recruiting of distributors or suppliers, Dyson may take a vertical integration

approach with the aim of improving its control over costs together with delivery times together

with quality standards.

4. Strategic Alliances:

By forming strategic connections with distributors and suppliers and logistical partners, Dyson

can improve the efficiency in its supply chain sector. By combining its experience and

technology together with its vast resources, Dyson is able to better control inventory, shorten lead

times and manage to promptly fulfill its consumer tastes and preferences.

Recommendations to Improve Dyson’s Supply Chain Management

Dyson can benefit from a combination of vertical, horizontal, and outsources strategies. The

company needs to leverage AI and Robotics to increase transparency and productivity in the

supply chon.

Profitability Model for Dyson

Porter's Value Chain Analysis is a valuable model that Dyson can use to boost profitability.

The major and supporting operations in a company's value chain are identified through this

approach that seeks to maximize their effectiveness alongside profitability of the company.

Main Activities:

Dyson ought to focus on enhancing its operations, marketing, sales, as well as the inbound

and outbound logistics. Through the optimization of these operations, Dyson can immensely

reduce expenses, raise customer satisfaction and at the same time increase the quality of the

product.
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Availability of infrastructure, technological development, procurement, and human resource

management include examples of support activities which are vital to the success of primary

operations. To increase total operational effectiveness and profitability, Dyson can spend money

on infrastructural improvements, staff training, and innovative technologies.

Strategic Purpose - Ethics and CSR

As an industry leader in the consumer electronics industry, Dyson’s CSR strategy is founded

on environmental stability, ethical labor practices and nurturing future engineers. Over the course

of its operations, the company aims to minimize waster, source responsibly and use renewable

energy while complying with legal requirements. Despite this commitment, there exists

opportunities where the company can deepen supply chain sustainability and engage with local

communities for a more impactful CSR approach. Using Carroll's CSR Pyramid and stakeholder

theory, this CSR analysis seeks to assess Dyson's CSR strategy, pinpoint moral dilemmas, and

offer suggestions for development.

Carroll's CSR Pyramid and Dyson's CSR strategy

Four components are included in Carroll's CSR Pyramid: philanthropic, legal, ethical, and

economic duties (Carroll, 1997). The pyramid proposes a hierarchical structure of CSR, with the

base representing the most basic needs and the peak representing philanthropic activities.

Dyson’s CSR strategy focuses on three key pillars: environmental sustainability, ethical labor

practices and inspiring future engineers (Dyson, 2022).

Dyson has ethical issues regarding labor practices, transparency, and sustainability. The

organization must intensify its endeavors towards environmental sustainability by mitigating its

carbon emissions across its supply chain and operational processes. Upholding ethical standards

requires transparency regarding sourcing procedures, working conditions, and product

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ingredients. A philanthropist's duty is to give back to the community. Through its charitable

endeavors, Dyson participates in philanthropic endeavors; yet there is room for growth and more

profound engagement with the areas in which it operates.

Analysis of Stakeholder Theory

Stakeholder theory places a strong emphasis on taking into account the interests of all parties

impacted by a company's decisions, not just the shareholders. Customers, staff members,

suppliers, investors, and communities are some of Dyson's stakeholders. In order to properly

handle stakeholders' issues, the corporation should give priority to stakeholder interaction

(Freeman, 1984).

Consumers anticipate sustainable, high-quality products. To satisfy customers, Dyson needs to

make investments in environmentally friendly technology and guarantee product longevity. Fair

pay, secure working conditions, and chances for professional advancement are what employees

want. To promote a healthy work atmosphere, Dyson should prioritize diversity efforts, training

programs, and employee welfare.

A vital part of Dyson's supply chain is its suppliers. The business should support fair trade

ideals, verify supplier compliance, and implement ethical sourcing procedures. In addition,

investors demand transparency, ethical conduct, and long-term profitability. In this case, Dyson

needs to fortify its CSR approach by enhancing supply chain transparency and carrying out

frequent audits in order to attract moral investors. Stricter ethical sourcing guidelines and

cooperation with suppliers regarding worker rights are required for such an undertaking. The

communities that Dyson's operations impact should also be included and supported. The

company should support local economies, engage in community development programs, and

contribute to environmental preservation.

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Ethical Concerns

Environmental Sustainability: Dyson needs to promptly respond to concerns about the

impact of its operations on the environment. The company should invest in clean energy, design

its products to be as energy-efficient as possible, and implement recycling programs for its

products.

Labor Practices: The labor practices used in Dyson's supply chain raise ethical questions.

The business should enforce labor laws, carry out routine audits, and teach suppliers on moral

business conduct. It is essential to implement equitable salaries and guarantee safe working

conditions.

Transparency: When there is a lack of transparency, stakeholders may become mistrustful.

By providing details on sourcing, production procedures, and environmental activities, Dyson

should increase openness. Transparency can be increased by routinely communicating with

stakeholders via reports and participation forums.

Recommendations

Recommendations for Supply Chain Management Efficiency

Invest in Technology:

To expedite production processes, enhance product quality, and shorten lead times, Dyson

should make investments in automation and cutting-edge technology (Porter, M. E. 1985).

Optimize Inventory Management:

Dyson can reduce inventory carrying costs while maintaining product availability by putting in

place cutting-edge inventory management systems and demand forecasting strategies (Simchi-

Levi, Kaminsky & Simchi-Levi 2007).

Emphasis on Customer Experience:

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Dyson may foster repeat business and brand loyalty by placing a high priority on customer

experience and satisfaction. This will ultimately enhance profitability (Hitt, Ireland & Hoskisson

2011).

Conclusion

Undoubtedly, Dyson navigates a complex internal and external environment but it strong

brand, innovative focus, and efficient operations provide a solid foundation for sustainable

growth. Competition, economic fluctuations, and technological advancements require constant

adaptation, and thus requires a global expansion strategy that demonstrates a commitment to

market analysis, operational flexibility, and global learning. While exploring these factors, Dyson

can venture into new markets and continue to fulfill their CSR commitments, focusing on

environmental sustainability, ethical labor practices, and nurturing future engineers. By

consistently innovating, adapting to market dynamics, and staying true to their values, Dyson can

maintain its position as a leader in the consumer discretionary products industry.

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Appendices

Appendix 1

Slide 1: Title
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Slide 2: Presentation Agenda

Slide 3: Using Mendelow’s Matrix to Map Dysons Stakeholders

 26

Slide 4: Internal Stakeholder Analysis

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Slide 5: External Stakeholder Analysis

Slide 6: Recommendations for improving stakeholder engagement

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Slide 7: References
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