A Case Study On Dyson Business
Added on - 10 Nov 2020
DYSON CASE STUDYQuestion OneBargaining power of suppliersThe ability to have its own Research and Development team of engineers sets Dyson at an advantageto have control over suppliers as they act as a leader setting pace for what they need. The availabilityof 350 engineers and scientists in the R&D team means huge power.The bargaining power of buyersWith so many options to choose from, the bargaining power of the buyers is high as there are manydifferent companies selling similar products. As such, Dyson has to make its products tailored to suitthe needs of its buyers, providing the best quality and at affordable prices.Threats of new entrants into the market,New entrants in the market is not a big threat to the company as the company is led by strongResearch and Development and thus for new entrants to be a threat they would have to have a verystrong Research and Development team. However, it is important for Dyson to have a strategy fordealing with strong entrants.Threat of substitutesSubstitutes exists in the market from different companies. As identified there are already fivecompetitors with the likes of Electrolux, Miele Hoover, and Excel Dryer. The main threat for thecompany currently is Excel Dryer.Industry rivalryThere already exists a competition rivalry in the industry with other giant companies competing withDyson and at similar scores. However, an increased use of technology and R&D to come up withoutstanding designs like already being implemented in the company through unique design likebagless vacuum and bladeless fan.Question TwoUsing the Organization Resource Audit through the V.R.I.N framework; Dyson has strategiccapabilities as follows:Value -Dyson’s aim is to improve the traditional products and solve issues of their consumersthrough improvement of functionality and new design of the products and thus the Dyson’s intensiveR&D.