Dysons'Change at Fasilane

Topics: Management, Strategic management, Change management Pages: 7 (2289 words) Published: January 31, 2013
SUBMISION DATE: 14/09/2012

Inside Dyson Case Study Questions
Dyson is a private company that engages in the development, design, and manufacture of high-performance appliances for different uses. Products from the company are used in many sectors but the company is well known in the manufacture of vacuum cleaners. Coupled with the production of high quality products and private ownership, the Dyson registers supernormal profits from the sale of its products. The Global network and international presence of the company enables it to enjoy substantive market shares in most of competitive markets such as the USA, UK, and China. The success of Dyson can be attributed to unique and strong strategic capabilities that enhance its competitive advantage. The strategic capabilities of Dyson can be analyzed through an evaluation of its value chain, dynamic capabilities, core competencies, and unique resources (Ferguson, 2009). Strategic Capabilities

Dyson Technology Innovation and R&D
Dyson’s foundation is built on a distinctive engineering design and innovation with enormous investments in Research and Development. Dyson technology entails engineering and re-engineering of prototypes through the process of thinking, testing, breaking, and questioning (making-breaking-making-breaking-and-making) until the engineering ideas are transformed into creative products. Dyson’s engineers are willing to ‘take the road less travelled’ even if it looks less sensible in order to transform innovative ideas into products. Patents protect the majority of products from the company and hence, the company has an upper hand in utilizing its resources. A clear example of patented technology is the Ball Technology, which facilitates steering thereby improving maneuverability and the Root Cyclone technology that is powerful in separating dust from the air. Global Networks

Dyson operates in more than 45 countries in the world including competitive markets such as Japan, USA, and China. The transfer of manufacturing operations to low cost regions such as Malaysia and Nanjing in China enables the company to minimize its cost margins while at the same time increasing the company’s profit generating capabilities and hiring capabilities (Ellram, and Feitzinger, 2007; Michael, Ireland, & Hoskisson, 2010). This strategic capability enables it compete with rival firms located in high-cost regions such as the UK and US. Iconic Leadership and Secrecy

Undeniably, Dyson owes its success to Sir James Dyson, who has an influential figure throughout the inception of the company to its current success story. Majority of company-wide decisions and innovations have been based on his creativity and vision. The company’s brand is tied to his image and it has remained a central brand in promotional activities. Furthermore, Sir James Dyson finances majority of engineering designs and collaborations for the company. Other than providing iconic leadership, Sir James Dyson has been very influential in maintaining the highest secrecy levels on operational matters and the company’s success stories. Distribution Channel, premium products, and value chain

Dyson has one of the best online retail stores, which is responsible for most of distribution functions for the company. Customers are also willing to pay premium prices for products from the company. Additionally, the location of manufacturing facilities is not critical in reducing costs but also in locating the testing facility near to the suppliers. This enhances UK’s value chain and as well, it increases the potential competitive advantage for the company. This strategic capability is competent in theory for it provides resource and customer value...
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