Corporate Strategy of Dyson - Case Study Example

The Dyson Company By Inside Dyson the distinctive company The Dyson is a private company that is famous for its production of distinctive vacuum cleaners. It is unfortunate that it is not among the firms on the stock market list. The founder of the company and the principle inventor is James Dyson, who has definitely accumulated fortune of approximately 1.5 billion dollars (Carruthers, 2007). Apparently, James Dyson is the sole owner of the entire enterprise and he is fortunately among the few individuals or rather entrepreneurs to appear in the list of the richest internationally through making great amounts of money through their own innovations and inventories. Corporate strategy at the Dyson Company Corporate strategy involves the formulation and implementation of major goals and objectives of the company. The top management of the Dyson Company will do this based on the consideration of resources and assessment of the internal and external environments in which the organization competes. The Dyson Company is active enough in the market region in order to maintain the share of the international market. This is because the Hoover Company that is a major rival or rather competitor is also struggling to be the best in the production and sales of the vacuum products. The Dyson Company through its director James Dyson is planning strategically in order to have the best reputation in the world market of the vacuum products. This will be possible only when there is efficient and effective communication in the firm. Analysis of the current position of the organisation in relation to its environment and competitors This concept gives details on the progress of the Dyson Company in terms of its success and challenges it faces in order to make it maintain the international market dominance. The current position of the Dyson Company is greatly related to the Porters Five Framework Forces that evaluate the market share of the firm. The top management of the company should therefore put more effort in order to maintain the competitive advantage. The Dyson Company operates internationally and it distributes its products in forty-five countries including most competitive markets such as the United States of America, Japan and China. It also does great sales at its home market of the United Kingdom where its headquarters is based thus making it the sole provider of the vacuum products due to the fact that customers are loyal to the quality products from the well-established Dyson Company. In the year 2005 after an effective and efficient analysis of the books of accounts, the profit of the Dyson Company was recorded to be approximately 100 million Euros despite the fact that the company sold fewer vacuum cleaners than their competitors Hoover Company did. Surprisingly, in terms of value rather than the number of units sold in the competitive markets, Dyson Company sells more in the United States of America more than the Hoover Company. There is a stiff competition between the two firms and this made the Dyson Company to sue the Hoover Company for the act of breaking the law by patent infringement. The Dyson Company operates internationally and it distributes its products in forty-five countries including most competitive markets such as the United States of America, Japan and China (Johnson, G. and Scholes, 2009). It also does great sales at its home market of the United Kingdom where its headquarters is based thus making it the sole provider of the vacuum products due to the fact that customers are loyal to the quality products from the well-established Dyson Company. Position of Dyson Company The success of the Dyson Company has not been easy because there are products that are introduced in the market with hopes that they will do well. Unfortunately, the customers did not like some products. For example the Dyson Company once designed an attractive vacuum cleaner that could pick dust as well as drying water from the carpets but customers ignored that offer as they had a mentality that the 3 in 1 product could not multi task at that level. There were also washing machines that did not sell well and withdrawal was necessary in order to maintain the selling levels of the Dyson Company, as the market is too competitive (Carruthers, 2007). Thus clearly indicates that a firm will only thrive in success when it provides quality products and services that are ideal to the customer themselves since they are the core determinants of the success of an enterprise (Johnson, G. and Scholes, 2009) In the international market, the Dyson Company is the best organization that produces vacuum cleaners. It is currently top in the market because it meets the qualities that the customers prefer. This success is facilitated through strategic management and adherence to the SWOT analysis. The SWOT analysis will evaluate both the external and internal environments where the Dyson Company operates. This will help the organization to be aware of the emerging issues in the market. The products of the Dyson Company are always distinctive or rather unique from other products from competitors. The features of the products involve bag less vacuum cleaners, desk fans that have no blades and hand dries that are energy and time efficient for appropriate use in public areas. The Dyson Company is always involved in secrets meetings that nobody can access the information from the discussions. This is a strategy the enables information to be highly classified thus helpful to the organizational structural growth and development. This will take the firm to higher levels because it will create modern products with the modern technology. The evaluation In this case there is the involvement of the 4 Ps namely place, product, price and people. The place is always the geographic position of a commodity that should be in a market where the customers can easily access without any constraints. The product should always be of quality that satisfies the customer needs thus the vacuums cleaners should be of modern technology. The price of the vacuum cleaners should be affordable enough that the low-income earners can also be able to buy and use them. This will trigger great sales that in turn create higher revenue that generates profits to the organization. The people are the customers that buy the vacuum cleaners thus the Dyson Company should always cater for their needs. The position of the Dyson Company will be perfect when it sticks to the principle of four Ps because the quality of the goods and services will be standard. This will result to the expansion and increase of the market share and the main aim of profit maximization will be met easily. This is an element of strategic planning that a firm must adhere to in order to maintain a competitive advantage and create a good environment for business. The environment of a business is always made up of internal and external concepts that one prominent economist known as Michael Porter identified as the SWOT analysis. The internal aspects include the Strengths and Weaknesses and the external aspects include the Opportunities and Threats. An analysis for the current situation in the Dyson Company illustrates the following: Strengths The Dyson Company is prestigious and the brand name is well known all over the United States of America consumers thus this makes the consumers to stick to their products. The top management is also having a vast knowledge on the current needs of the consumers making the Dyson Company to produce exactly what the customers’ need. Weaknesses Currently there are flat sales and profits making the revenues to stay low. There are also social responsibility actions that add costs thus reducing focus on the core business. The board of directors should also be experienced enough in order to create growth levels in the organization. Opportunities There is a growing demand for the quality products from the Dyson Company in the international markets. There are also investors who would like to join the enterpriseand this will automatically create a platform for expansion and greater outputs. Surprisingly, in terms of value rather than the number of units sold in the competitive markets, Dyson Company sells more in the United States of America more than the Hoover Company. Threats The major threat is the stiff competition from the Hoover Company that also produces the same products as the Dyson Company. This creates a situation of panic to the development of market shares. Strategic options available for the organization The available strategic option for the Dyson Company is to maintain top secrets in the organization. This is evident in the United Kingdom headquarters where accessing the building and the subsequent areas through thumbprint and even some areas that are out of bounds. There is even development of technologies of sound absorbing panels that will make the conversations a secret. This will create a situation that the competitors will not be able to know the plans of the Dyson Company. Through this method, the Dyson Company is structured upon innovative products that are marketed as strong, designed in well bright colours and majorly the advertisements involve the sole entrepreneur James Dyson thus this adds some advantage to the products due to the desired personality of the entrepreneur (Wireman and Beck, 2011). The products of the Dyson Company are always distinctive or rather, unique from other products from competitors. The features of the products involve bag less vacuum cleaners, desk fans that have no blades and hand dries that are energy and time efficient for appropriate use in public areas. The latest idea from the company that will outdo the competitors entails the production of products that are subject to saving space in the kitchen. The products will in cubical shapes and after use they form a stack that is space conscious thus ideal for fitting even in small places according to the design of the kitchen. Conclusion The Dyson Company has been successful in the market because it serves the interests of the customers. The Dyson is a private company that is famous for its production of distinctive vacuum cleaners. It is unfortunate that it is not among the firms in the stock market list. The founder of the company and the principle inventor is James Dyson who has definitely accumulated fortune of approximately 1.5 billion dollars. Apparently, James Dyson is the sole owner of the entire enterprise and he is fortunately among the few individuals or rather entrepreneurs to appear in the list of the richest internationally through making great amounts of money through their own innovations and inventories. Recommendations The Dyson Company should stick to a proper strategic management that will make the organization sell great volumes. The major factor that this organization should consider is making sure that their products are of the best quality and perform their duties as structured. There should also be creation of vacuum cleaners that are easy to operate so that the illiterate can also operate them with a lot of ease(Wiersema and Beck, 2011). The vacuum cleaners should be time efficient and energy efficient too in order to enhance operational efficiency. The Dyson Company should expand to various countries as it is structured upon innovative products that are marketed as strong, designed in well bright colours and majorly the advertisements involve the sole entrepreneur James Dyson thus this adds some advantage to the products due to the desired personality of the entrepreneur. The marketing strategy in the organization should increase because the products of the Dyson Company are always distinctive or rather unique from other products from competitors. The features of the products involve bag less vacuum cleaners, desk fans that have no blades and hand dries that are energy and time efficient for appropriate use in public areas (Carruthers, 2007). The latest idea from the company that will outdo the competitors entails the production of products that are subject to saving space in the kitchen. The products will in cubical shapes and after use they form a stack that is space conscious thus ideal for fitting even in small places according to the design of the kitchen. These improvements should be sold first in the most developed states. References Carruthers, I. (2006). Dyson. London: Cyan Communications. Carruthers, I. (2007). The domestic engineer.London: Cyan. Carruthers, I. and Pak, S. (2011). Daisunsŭtori.Sŏul: Miraesa. 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