CASE STUDY: DYSON VACUUM CLEANER
Shifting from domestic to international marketing with the famous bagless vacuum cleaner
Professor Barbara Knup
Erick N. Shirimpumu (std no.28365) Dechen Peldon (std no. 27042)
Doris Dzomu (std no. 30298)
Kamal Masoud (std no. 26605)
Rachal Utuga (std no. 29963)
Kleves Alimerko (std no. 29623)
Table of contents
II.Questions and Answers5
III. Opportunity and Competitiveness of Dyson Airblade10
IV. Conclusions and recommendations13
Dyson is a pioneer company which invented the bagless vacuum cleaner. It is one of the world’s leading companies in vacuum cleaner industry. The company has diversified its business into other areas as washing machine and hand dryers.
This report analyses the new markets Dyson Company should enter and expand by allocating more resources in order to develop them into future growth markets. It also highlights Dyson’s long term strategy for high price products and evaluates the distribution strategy in the U.S market. It also includes the new Dyson Airblade hand-dryer and future success in the market.
Dyson should increase their presence in the current and new market due to the fact that Europe is still a potential market and Dyson should expand in Western Europe and move to Eastern Europe because they both provide a favorable environment for doing business.
Changing their marketing strategy and promote their product through mass media would have more impact in increasing their customers and creating more awareness of the brand. Reduce the price of air blade product since customers are not willing to pay more for the brand when the value of this product is almost the same as that of their competitors.
The strength of the company is in upstream activities and in order to be successful Dyson should merge with other companies which have core competencies in downstream activities for promotion and distribution of their product.
Traditional vacuum cleaners are used for cleaning dirt and dust, using suction force by drawing air through the bag of vacuum cleaner. As the competition in the vacuum cleaner industry grew, the features, overall quality and performance of vacuum has improved and become more affordable. People have more choices now than ever before, and they have their own preferences on various brands and types. Today, in developed countries we find domestic vacuum cleaners, mostly in homes with carpet floors. This is a result of many engineering advances in vacuum cleaner technology over the years. Dyson is the pioneer company who invented the bagless vacuum cleaner. It is one of the world’s leading companies in vacuum cleaner industry with its strength in technology and innovation. James Dyson, the creator of Dyson Company, introduced innovative vacuum cleaner which replaced the suction technology with cyclonic system and eliminated the need for the both bag and filter. However, as big vacuum cleaner manufactures refused his technology, Dyson decided to develop his own manufacturing company (including R & D) by the earned money from a Japanese company, which was interested in his innovation. The rest of the money was spent on patent protection.
Dyson was able to continue developing the new models and ideas in his vacuum cleaner plant and got steady increase of market share worldwide. In recent years, Dyson has expended into the air blade hand-dryer and the washing machine industry. In this report we shall analyze Dyson Company’s internationalization of Vacuum cleaner, which markets should they enter and the expectations of their future growth. It will also highlight Dyson’s long term strategy for high price products and whether they can continue to use their present...