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Understanding Markets: Dyson Goes without Blades - Case Study Example

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This paper is an analysis of how the theory demand may relate to the Dyson Air Multiplier. Dyson Air Multiplier fan is a new technology, which works without blades and the company expects it to revolutionize the fan industry. It is safer, easy to clean and above all faster than conventional fans.    …
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Understanding Markets: Dyson Goes without Blades
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Download file to see previous pages Dyson Air Multiplier has got the price as well as income elastic demand. This is because the customers value the product but are reluctant to purchase due to the high price. Thus, if the price of the product falls, we can expect the fan to find great increase in its demand. Likewise, if the income of the potential customers rises, we once again can look for a sharp increase in the demand for the fan and great trouble for the competitors.

Although the fan is a new design and an appealing one, the fan is still only a substitute for the other fans with blades. Moreover, there are other brands among the conventional fans preferred by customers to Dyson Air Multiplier. The fan thus has failed to become a monopoly of a unique kind and has got strong competition to face in the market. Dyson, therefore, has just managed to mitigaite the level of competition.

“I wonder if a Korean would think this kind of fan could kill you...,” says an anonymous customer about such an astonishing fan, Dyson Air Multiplier. Dyson Air Multiplier, a fan invented by Sir James Dyson, works without any blades or grille (Sayid, 2009). The Multiplier is able to blow air at a speed matching that of the conventional fans and it is easy to clean and assemble (Beschizza, 2009). Dyson produces the fan in Wiltshire and currently sells in 19 countries of the world. The company has got the plans to sell it soon in US, UK, Australia and Japan and the sales forecasts indicate that the demand of the fan will remain steady in these countries as well (Liverpool Daily Post).

This report at first assesses the likely demand of Dyson Air Multiplier in the marketplace in the light of economic theory; it then discusses the consumer behavior relating to the fan and price as well as income elasticity and finally looks into the likeliness of the fan creating a monopoly.     ...Download file to see next pagesRead More
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