Business Operations Analysis of Dyson: A Detailed Report

This report provides a comprehensive analysis of Dyson's business operations, examining the company's strategic decisions, internal analysis, and factors contributing to its success. The report begins with an introduction to Dyson, outlining its nature of business and the challenges it faces. It then defines success within a business context, using the balanced scorecard to evaluate Dyson's performance. The analysis delves into the reasons behind Dyson's success, highlighting innovative products, customer attraction, and investments in technology like robotics and AI. The internal analysis employs value chain and VRIN analyses to assess Dyson's core competencies and competitive advantages. The report also examines the contributions of Dyson's leaders, reviews the strategies employed, and considers the future prospects of the company. Overall, the report provides a detailed overview of Dyson's business operations and its position in the industry.

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ANALYSIS OF BUSINESS OPERATIONS OF DYSON
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1ANALYSIS OF BUSINESS OPERATIONS OF DYSON
Table of Contents
1. Introduction................................................................................................................2
2. Definition of Success.................................................................................................2
3. Reasons for the success of Dyson..............................................................................3
4. Internal analysis of Dyson..........................................................................................5
5. Contribution of the leaders of Dyson.........................................................................8
6. Review of the strategy used by Dyson.....................................................................10
7. Analysis of the future of Dyson...............................................................................12
References....................................................................................................................14

2ANALYSIS OF BUSINESS OPERATIONS OF DYSON
1. Introduction
Dyson Ltd. is a technology based company of British origin that was established in
the United Kingdom in 1991 by Sir James Dyson. The organization mainly operates in the
designing and manufacturing of different household appliances like, air purifiers, vacuum
cleaners, bladeless fans, hair dryers, lights and heaters. Dyson has employed greater than
12000 employees in the operations that are performed in different parts of the world. The
headquarters of Dyson was decided to be moved to Singapore in the year 2019. The main
purpose of shifting the headquarters is related to the ways by which the manufacturing
process can be developed by providing focus to the development of electric vehicles.
The nature of business operations of Dyson Pvt. Ltd. is mainly based on the
development of different electrical appliances and vehicles as well. The organization has
been able to maintain its operations in the industry with the help of a diverse portfolio that
has been formed.
Dyson had faced major levels of challenges based on the ways by which the major
products like, vacuum cleaners that are developed by the organization. The imaginative
processes that are implemented by the organization are based on the ways by which the
leader has been able to gain huge fame in the industry. The customer base of the organization
has been developed in such a manner that has been able to support Dyson to gain high levels
of revenues in the industry in an effective manner (Aghazadeh, 2015).
2. Definition of Success
As discussed by Aguinis, Edwards and Bradley (2017), success can be defined as the
result base on the ways by which something that is achieved by an individual. The high
position that has been developed by an organization in the industry is considered to be an
important factor that is based on success that is gained. The satisfactory methods and

3ANALYSIS OF BUSINESS OPERATIONS OF DYSON
processes that are gained by the individuals are considered to be important factors that are a
part of the success. Success helps the organizations to achieve a high position in the industry
(Ambrosini, Jenkins & Mowbray, 2015).
Balanced score card analysis of Dyson –
The success of Dyson can be maintained with respect to the profitability that has been
gained in the industry. The competitive edge which is formed by the organization is also
considered to be a major indicator of the success levels of Dyson in the domestic as well as
the international market. The organization has been able to gain immense levels of success
with the help of effective resources and the leadership that has been provided by the founder
as well (Barros, Hernangómez & Martin-Cruz, 2016).
My personal opinion of success is the position that is developed by an organization in
the industry in comparison to its major competitors in the industry. The proper development
of a unique position of the organization is considered to be a major factor that has an impact
on the operations and the future strategies based on growth that are developed as well (Basile,
Kaufmann & Savastano, 2018).
The strategy implemented by Dyson is based on the levels of
innovation and innovative products.
The objective of Dyson was the
development of a bag-less vacuum
cleaner.
The success gained by Dyson in the domestic market.
The success gained in the international market areas.
Development of highly innovative
products.

4ANALYSIS OF BUSINESS OPERATIONS OF DYSON
3. Reasons for the success of Dyson
The major reasons behind the success of Dyson have been the changes that have been
made in the strategies implemented by the organization. The success of the organization is
mainly based on the ways by which it has been able to achieve the objectives that have been
set. Dyson had also been able to gain immense levels of success after major failures that were
seen by the founder and CEO of the organization (Certo et al., 2018). The different factors
that were related to the success of Dyson in the industry are as follows,
 The development of an innovative product like “the bag-less vacuum”. The
organization had started its operations in the 1970 and had been highly
successful in the development of such an innovative product. The founder of
the organization had been able to play a major role in the development of such
an innovative product (Chernev, 2018).
 The customers were attracted towards an innovative and more convenient
product that had been able to replace the heavy vacuum cleaners that were
used at that time.
 The success of the organization was not ensured when it had started its
operations with such a different product. However, the company had gone
through many failures in an effective manner in order to gain massive success
in the industry (Daspit et al., 2017).
 The designs of the product offered by Dyson were mainly described in terms
of the levels of their usefulness rather than the looks. This had been able to
make the customers aware of the ways by which the organization can fulfil
expectations of customers.

5ANALYSIS OF BUSINESS OPERATIONS OF DYSON
 Dyson had made major levels of investments in the robotics based activities.
The robotics that are implemented in the vacuum cleaners have enabled them
to find out the areas in which they need to clean (Durand, Grant & Madsen,
2017).
 AI or artificial intelligence has also been an important part of the ways by
which the product of Dyson have been able to fulfil the expectations and needs
of the consumers within stipulated amounts of time (Engert, Rauter &
Baumgartner, 2016).
4. Internal analysis of Dyson
Value chain analysis of Dyson –
As discussed by Ethiraj, Gambardella and Helfat (2016), the value chain of an
organization is mainly able to form an effective analysis of the business organization and the
ways by which the company can decompose different parts or areas of its operations. The
sources of competitive advantage that can be developed by the organization are taken into
consideration in case of the analysis of the value chain in a detailed manner (Fratričová &
Rudy, 2015). The competitive advantage is further achieved by an organization with the
support that is provided by the activities that it performs and the business operations as well.
The value chain of the organization is thereby made of different activities that are able to
generate value based on lower levels of margins (Gans & Ryall, 2017).
Primary activities –
Inbound logistics – The manufacturing plant of Dyson that is located in a rural area in
west of London is mainly used for the purpose of developing new products that are able to
provide the company high levels of control over the IP rights and the levels of secrecy as
well.

6ANALYSIS OF BUSINESS OPERATIONS OF DYSON
Operations – The operations of Dyson are mainly based on the ways by which hand
dryers, fans and vacuums are moved into the integrated kitchens and different robotic
vacuums. The success of iRobots is also an important factor that is able to play a major role
in the operations of Dyson (Gomes, Barnes & Mahmood, 2016).
Outbound logistics – The manufacturing based activities of the products is carried out
in various countries of the world that include, China and Malaysia. The costs based on
warehousing and labour costs are low in this case and the company is able to reduce the
production based costs and the ultimate prices of the products as well (Grant & Baden-Fuller,
2018).
Sales and marketing – The products that are offered by Dyson are new and quite
different from the washing machines and the vacuum cleaners. The machines are considered
to be quite unique and are also identifiable easily from the bright colour based variations that
have been developed. The products are considered to be highly robust in nature and do not
require high levels of sales support as well (Haines, 2016).
Service and support – The unique designs based on engineering are protected in an
effective manner by the IP rights.
Secondary activities –
Firm infrastructure – The large testing facility of Dyson that is located in Malaysia is
able to operate in an effective manner. The operations of Dyson that has been set in the UK
has been able to employ 1200 different people. Some of these people are experienced, some
have received fresh qualifications and some are able to provide unique ideas (Hanson et al.,
2016).

7ANALYSIS OF BUSINESS OPERATIONS OF DYSON
Human resource management – The levels of creativity that exists among the
employees of Dyson are rewarded in an effective way by the organization. The most
important part of the profits of the organization is based on the designs of the products. High
levels of encouragement are provided to the staff in order to process the ideas and to provide
rewards to the ideas as well (Hitt, Ireland & Hoskisson, 2016).
Technology development – The company has provided major levels of focus to the
innovative designs of the products and the development of technologies is able to take more
than half of the total profits that are gained by Dyson in the industry. The prototypes of the
products are tested effectively with the help of innovative designs of the products (Jenkins &
Williamson, 2015).
Procurement – The process of procurement is performed by Dyson near suppliers of
the raw materials that are mainly required for the production process. The manufacturing
based activities in the value chain of the company in Malaysia and that in China is able to
play a major role in profits that are gained (Kasdin, Barnow & Newcomer, 2018).
VRIN analysis of Dyson –
V – Most of the capabilities that have been developed by Dyson are considered to be
highly valuable in nature and is able to include, many different thresholds based capabilities.
R – The products of Dyson cannot be considered as rare as the competitors have
always tried to imitate them. The different capabilities of the organization are however
considered to be quite rare in order to maintain the distinctive culture in an effective way.
The day to day activities that are performed by the managers are affected in a huge manner
by the capabilities that are developed (Lasserre, 2017).

8ANALYSIS OF BUSINESS OPERATIONS OF DYSON
I – The levels of imitability can be considered to be the result of the different linked
activities that are performed within the organization. The competitors are also not able to
make sense of the various activities that are performed within the organization in a linked
way.
N – The prediction based on threats related to substitution of the products is high and
the innovative technologies of Dyson have been able to substitute the conventional and old
technologies that had been implemented in different organizational processes earlier (Lee et
al., 2016).
Core competency of Dyson – Distinctive and threshold are considered to be two
major types of competencies or resources that are able to affect the operations of
organizations. The threshold resources that have been developed by Dyson mainly include,
the suppliers of the raw materials, the manufacturing space, facilities and offices, equipments
based in engineering design, the sufficient customers and the appropriate personnel as well
(McMillan & Overall, 2016). The international distribution network is also considered to be
an important factor that is able to affect the core competencies that are developed by Dyson.
The distinctive resources on the other hand include, the founder of the company, the
headquarters and the laboratory of the organization and the high end brand value of Dyson
that has been developed in the industry. The extensive advertising and PR based activities
that are performed by Dyson are able to play a major role in the operations and levels of
profitability that are gained by the organization as well (Morschett, Schramm-Klein &
Zentes, 2015).
5. Contribution of the leaders of Dyson
The success that has been gained by Dyson in the industry is mainly based on the
effective leadership and innovative thinking process of CEO of the organization. Sir James

9ANALYSIS OF BUSINESS OPERATIONS OF DYSON
Dyson who was an industrial designer and a British inventor had laid the foundation of the
company. Sir James Dyson is mainly known for his invention of “the bag-less vacuum”
cleaner that mainly works on the principle of cyclonic separation. The breakthrough was
mainly received by Dyson after ten years of the invention that was made by him
(Rosenbaum-Elliott, Percy & Pervan, 2015).
The TV advertising based campaigns that had been developed in the UK had been
able to play a major role in the ways by which Dyson has gained a position in the industry.
The slogan that had been able to attract attention of public was “say goodbye to the bag”. The
Dyson Dual Cyclone had been able to become the highest selling vacuum cleaner machine in
the UK. The product was also able to outsell some of the organizations that had previously
rejected the idea that had been developed by Sir James Dyson. Sir James Dyson had stepped
down as the Chairman of the organization in the year 2010 (Slack & Brandon-Jones, 2018).
The founder was further succeeded by the ex-head of an organization like British
Airways Bob Ayling. Sir James Dyson had however retained a major role in the organization
based on increasing the levels of innovation in the products. The leadership that had been
developed in Dyson was considered to be a major factor that had been able to affect the
operations of the organization in a huge manner. The founder of the organization had been
able to play the most significant role in the proper development of the capabilities of the
organization that had been developed in the industry (Steinbach et al., 2017).
Dyson had also been able to involve his children in the operations of the organization
and the position that had been formed in the organization as well. The success that has been
gained by the company in the industry is totally based on the innovative ideas that have been
developed and implemented by the CEO of the organization. Sir James Dyson has been able

10ANALYSIS OF BUSINESS OPERATIONS OF DYSON
to play the most significant role in the ways by which the organization has maintained its
position in the industry (Slack & Brandon-Jones, 2018).
The profitability and operations of Dyson have been based on the levels of innovation
that are implemented in the products and uniqueness of the products as well. The innovative
culture of the organization is considered to be highly important for the ways by which Dyson
has maintained its position in the industry for a longer period of time. The engineering of the
products and their innovativeness can also be considered to be major factors that have been
able to affect the ways by which Dyson has maintained its profitable operations in the
industry for longer periods of time (Kasdin, Barnow & Newcomer, 2018).
6. Review of the strategy used by Dyson
Competitive strategy of Dyson – The competitive strategy that has been developed by
Dyson is mainly based on the levels of innovation that have been implemented in the
operations of the organization. The organization has aimed at gaining competitive advantage
in the industry with the help of high value that can be provided to the customers. The
resources that have been developed and are held by the organization are able to play a key
role in the operations of Dyson (Hanson et al., 2016). The innovative spirit of the founder of
the organization has been able to play a major role in the ways by which Dyson has been able
to face the competition that exists in the industry. Innovation is considered to be highly
important for the firms so that they are able to maintain their position in the respective
industries. The development of an effective competitive strategy is also considered to be
important for the ways by which Dyson aims at maintaining its position (Gomes, Barnes &
Mahmood, 2016). The recognition that has been developed by the brand of Dyson is
considered to be a major factor that is a part of the competitive strategy of the organization in
the industry. The marketing activities that are performed by Dyson are also highly innovative

11ANALYSIS OF BUSINESS OPERATIONS OF DYSON
in nature and is able to help the organization so that it is able to become a leader in the
industry. The levels of innovativeness of the strategies that have been implemented by Dyson
are mainly based on the ideas that have been implemented by the founder (Barros,
Hernangómez & Martin-Cruz, 2016).
Growth strategy of Dyson – The growth of Dyson is mainly based on the ways by
which generic strategies can be implemented by the organization in order to maintain its
position in the industry. Innovation is the most important part of the generic strategy based on
growth that has been implemented by Dyson. The strategies based on pricing of the products
of Dyson are considered to be highly important for the ways by which different operations of
the organization are maintained (Tonelli & Cristoni, 2018). The economic conditions in
different countries have an impact on the development and implementation of effective
strategies. The levels of uncertainty that exist in the economic condition are considered to be
an important factor that has an impact on the costs based on production and the prices of the
products as well (Trigeorgis & Reuer, 2017).
The Ansoff growth matrix can be used in order to analyse the ways by which growth
strategies have been developed and implemented by the organizations. The type of growth
strategy that is implemented by organizations is considered to be important for the ways by
which organizational operations can be developed. Dyson has developed and implemented
many different strategies in order to ensure growth in the market. The organization has taken
the decision to enter new areas or markets in order to increase the organizational operations
in different parts of the world (Wheelen et al., 2017). The strategy based on market
development has been thereby implemented by Dyson in order to increase the levels of
revenues and profitability in the industry. The strategy based on proper development of the
products is thereby related to formation of different market segments that can provide high
levels of profitability to the organization. The successful operations of Dyson are thereby