Dyson's International Business Strategies: Analysis and Planning

Verified

Added on  2023/06/08

|17
|4355
|461
Report
AI Summary
This report provides a detailed analysis of Dyson's international business strategies, examining the various factors that influence its global expansion. It explores different types of international environments and applies corporate strategy tools and techniques in an international context. The report evaluates the risks associated with international trade and uses PESTLE analysis to assess Dyson's market situation, highlighting potential challenges before entering new markets. It also describes international management strategies, utilizing tools like SWOT analysis and Porter's Five Forces to conduct market research and formulate effective strategies. Finally, the report outlines the specific international strategies implemented by Dyson, the tools used in their development, and how these strategies contribute to enhanced performance and profitability in their international endeavors. The report also touches upon the importance of skills such as communication, market research, technology analysis, and decision-making for successful international business ventures.
Document Page
Organizational report
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
EXECUTIVE SUMMARY
In this report give a detail regarding the topic of international business and relate with the
Dyson company who deals with home appliances, and analysis the international business to
making the effective international strategies. In this report it discusses the different types of
international environments and apply some appropriate tools and techniques of corporate
strategies in management in the international context. Along with it evaluate the risk which is
associated with the international trade, and apply the PESTLE analysis on Dyson company
which helps the company to expand their business globally and indicate the market situation that
what things they need to avoid before entering the new market. After this it describe the
strategies of international management and apply some tools and techniques such as SWOT
analysis, Porters five models and so on. It describes that how the company use this tools to doing
research in the market and use this data for making the effective strategies. Lastly it defines that
what international strategies made by the Dyson, company and what tools they used for making
this. This international strategies planning helps the company to enhance their performance and
be more profitable in their international endeavours.
Document Page
Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Literature review..........................................................................................................................1
Analysis and discussion...............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Document Page
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
INTRODUCTION
International business helps people to expand their businesses all over the world and earn
more profit. If Dyson want to expand their business globally, so they need to doing some
research and work before entering into a new market. International business means that doing
trade of good, services, capital, technology and others all over the nation, its relates to those
situations where the company doing their production and distribution if goods and services in
different countries (Andersen, Torp and Linder, 2019). To doing the international businesses
Dyson need to focus on this skill such as good communication and language, doing research and
development of the market an aware the cultural, doing technology and data analysis, finance
and budget of the comply and lastly good in decision- making. If the company focus on this
skills, so it is very helpful for growth of the company and they also increase the brand image.
Along with this report it helps the Dyson company to doing Internationale business plan, so that
they can use this information in proper manner to expand their business international.
MAIN BODY
Literature review
International Business
It refers to the commercial activities which going the beyond of the geographical
boundaries of the company. Many different countries are doing business with other countries to
increase the growth of the company (Andreevna, 2020). Along with many other countries also
doing purchase and sales of good and services, it is not only related to the international trade of
goods and services, but also involve some this activates such as personal, technology, capital and
intellectual property. International business is in three types which are listed below:
Export Trade- In this trade the Dyson company can sale their goods and services to different
countries.
Import Trade- This trade helps the Dyson company to purchase the product and services from
other countries.
Entrepôt trade- In this trade the Dyson company purchase the goods and services for other
countries and re-sale those goods and services to other different countries.
1
Document Page
Dyson plc company is a multinational technology company which was founded by the James
Dyson, it was established in 1991 at Malmesbury, England. Along with this company
manufacturing the household appliances such as air purifier, vacuum cleaner, hand dryers and so
on and their main headquarter was in Singapore. The net income of this company is US$1.9
billion and thousands of number of employees working in this company all over the world.
It is the tool which is used by the marketers to analyse the external environmental factors
and forces that have an impact on an organization, company or an industry, direct and indirect
way. The analysis having a six factors such as political, economic, social, technological, legal
and environmental also. This analysis helps the Dyson company to doing the international
business and support to find the opportunities to expand the company globally. Along with it can
helps the company to know about the impact of factors on the company which can also prepare
us for the possible threats in near future. Dyson always face difficulty for the big corporation
because the interest rate is higher (Catanzaro, Messeghem and Sammut, 2019).
Political Factors-This political factors are related to the government activities which is
uncontrollable it is the tax policies, government restrictions and regulations which can affect the
industry, organisation or a company. As free trade policy is established among different
countries, the Dyson company is the chief operator in UK having its locations abroad also, by
this policy the organisation is benefited in a great way, as it imports foreign products for sale in
their markets at a lower price. But know Dyson company get the advantage by doing the
international businesses because recently Dyson company sign the deal with Japanese company,
which provide fund for the research and development work. This fund supports the company to
doing innovation of new models and ideas, which help to expand their business globally
(Ditkaew, Jermsittiparsert and Kaliappen, 2021). If the Dyson company wants to start their
business in Egypt, so before entering they need to analyse their political factors.
Economic Factors- Theses factors include pricing policies, inflation and deflation rates, credit
availability and cost of living. Which can put some impact positive or negative on the company
activity. Different pricing policies of Dyson company among the competitors which effected by
profitability as they are encouraging budget home appliances such as vacuum cleaner, heater and
2
Document Page
others which affect the market share of the company. The current situation of market is not so
good it does not provide the favourable conditions to any company to doing any international
business. So it also affects the Dyson company to doing any international business. According to
the opinion of Katie Alex Stevens, 2019.(GLOBAL EXPANSION: 3 FACTORS TO CONSIDER
BEFORE EXPANDING YOUR BUSINESS INTERNATIONALLY, 2019). Along with when the
Dyson company wants to entering in the forging market, so they need to analysing this factors
because it helps to identify the opportunities and threats of the company. If the Dyson company
expand their business in Egypt, so they need to analyse the market. Along with it supports to
consider some factors when the entering the foreign market such as Gross Domestic product
(GDP), Unemployment rate, inflation and others focus on this factors so it helps to entering the
new market in different countries.
Social Factors-These factors are considered as the one which pays more attention towards the
societal and cultural norms it includes the values and ethics. The Dyson a well-known brand in
the UK and many more countries. it has developed a sense of trust among its customers with
respect to its quality and reliability the trends are updating day by day, fashion sense is also
increasing among the customers, so they are willing to buy latest new innovating product. But
Dyson is not opting new styles, from the majority's perspective. So the interest of consumers is
shifting towards other brands. The reason of success for Dyson company is they keep analysing
the market and people taste and preferences. According to the opinion of Bernard Marr, 2019, If
the Dyson company wants to expand their business in Egypt, so they need to be carful that they
are harm any social factors (The 5 Biggest Global Trends Every Business Must Be Ready For,
2022). Because Egypt people are more aware and concern for the environment, so Dyson
company need to analyse the Egypt country social policies before doing the any business activity
because it is beneficial for the company to achieve their target and gain the trust of new
customers. If the Dyson company need to focus on that they are not doing any such activities
which harm the any social, culture and ethics value.
Technological Factors-This term is related with the changes and up-gradation in the
technologies. As the technologies are updating, and customers are being more techno-friendly,
Dyson has also promoted a self-scanning technology into its stores. Where customers can browse
3
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
and buy the product, along with after the success of vacuum cleaner, the Dyson company start
innovating the new products. Recently Dyson launch the new laser vacuum cleaner for their
customer. According to the opinion of Catherine Capozzi, 2017 says that technology plays a very
important role in international business, it helps the company to increase their production at low
cost and earn more profit (Importance of Technology in International Business, 2022). If the
Dyson company wants to earn more profit and start their business in Egypt so they need to adapt
the advance technology, because technology helps the companies to produce the product for the
less investment. Dyson company always doing some innovation in their product, they doing lots
of research and development the customer taste and preferences and lunch their product
according to their preferences.
Legal Factors-As legislations in a country keeps on changing Dyson keep itself updated in terms
of changing laws and regulations. By promoting training sessions. If the Dyson company wants
to expand their businesses of doing any Internationale business, so they need to aware that they
are harm any legal policies of the different counter-espionage if in case they are not follow the
legal rules and regulation of the countries, so it will the effect the brand image and also face
difficult to doing any businesses actives in different countries (Hongal, Charantimath and Phatak,
2019). If the Dyson company wants to start their company in Egypt, so they need to follow the
all rules and regulations properly otherwise they face difficulty to compete in the market.
Environmental Factors- These are the factors which are mainly concerned with the
environment surrounded by us, and also the ecological factors. The company also make sure that
it aware s the society towards the environment in a positive way by providing eco-friendly
products. They also promote its products by removing harmful products via encouraging Health.
Dyson company always promote the cleanses. According to the opinion of Natalie Olynec,2022,
that it is important for the companies to paying attention to the ESG groups means economic,
social and governance issues (Why all businesses should embrace sustainability, 2022). Because
it is necessary to maintain the rules and regulation related to ESG many companies use the eco-
friendly techniques to save their environment, along with companies are doing some changes in
their packaging, they avoid plastic, a use eco-friendly things for doing packing. This thing helps
to attract the new customer and it helps to compete in new market. Dyson company already focus
4
Document Page
on the cleanse they are more concern about this. But if they want to start their business in Egypt
so, they need to be considerer that they are not doing any such activities which affect their brand
image.
When any company wants to expand their business in foreign, so they need to make a
proper strategic plan which helps to compete with their competitors and provide the right
directions of the company to achieve their target. Internationale strategic management involves
the proper planning to developing the international strategies which helps the company to
provide right direction to expand their business in Internationale market. Along with it is the
ongoing process of the company which compete in an international scenario. The main aim to
making this strategy is to allow the organization to expand the businesses and compete
internationally, this strategic plan is used for innovating the particular international strategies.
Strategic analysis involves the researching and analysing process of an organization, of
the environment which operates and formulate the strategies. This process includes the internal
and external environment a collective the data and utilising for analytical strategic analysis tools.
The tools and techniques used for making strategic analysis such as SWOT analysis, PESTLE
analysis, Porters five forces and further more are using to analysing the internationalism market.
Before making the strategies company need to focus on this key points such as analysing the
strategies level, complete the internal and external analysis (Lee, 2019).
Ansoff matrix- It refers to planning of model which provides the base for the seniors and the top
management level to perform effectively towards the direction of achieving goals by increasing
the growth also. This model helps the organisations to be aware about the prevailing risks, and
understanding about the growth strategies of an organisation.
Four Corner Analysis- This tools helps the company to accesses the competitor’s objective and
their changes. This technique evaluates the competitor actives such as what strategies they use
and determine the competitor’s reaction for the change in environment.
5
Document Page
Dyson is the leading company in the house hold products and currently the operates the
competitive businesses environment. So they need to make some international strategies
planning expand their business and remain the competitive in the market. Along with Dyson
need to analysing the market and attract the new costumers to make a international strategies
planning which are listed below:
Industry attractiveness- This vertical axis of the GE matrix helps to indicate how difficult or
easy it is for the company to compete in the market and earn more profit for the organisation.
When the company wants to appraise the attractiveness and analysts should look at how an
industry will change in long run rather in the near future, because more profitable firm means
more attractiveness.
Competitive strength- This horizontal axis of the competitive strength of the company units,
which can be divided into three parts – high, medium, low. These variables help to indicate how
strong, in terms of computation, a particular firm unit has a sustainable competitive advantage or
not. If the company have sustainable competitive advantage, then how long it will be sustained
and it's all about the future ability to compete of one single company within the specific
organisation.
Analysis and discussion
Expansion of Dyson to the international market will be a possibility by which it is able sell
its product in new markets by presenting its uniqueness. By promoting the product in front of the
new customers, company will find a new source for its revenue generation, which automatically
enhance the profit earning opportunity for the company. If Dyson expands boundaries of its
business on international level, then new investors from different nations wants to invest their
fund in the company. It also helps the company to cover those loses, which it bears in their own
domestic market. Company will able to find new skilled labour who will have potential to give a
good start to the new business establishment in these international market. But before setting up
business in international markets, company must take a look on the policies of the government
for the overseas businesses and procedure for registration of the company and much more.
Company should also consider the customer's behaviour and trends which are currently
following by the marketers in other nations. After following all these steps company can develop
6
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
proper plans and promotional techniques for the business which will going to settle in the
international market (Nagel and Aviles, 2021).
There are various methods by which Dyson can take its step to enter in Egypt market is
discussed below-
Exporting- For any business organisation who wants to enter in international market then
exporting business will be the simplest option. Exporting is the process of transferring
domestic product to the international. If the Dyson company wants to enter in the market
of Egypt and expand their business internationally, so they need to adapt exporting
system to promote their products and increase their sales. It is very common method
mostly internation companies use this method to expand their business globally. So it the
direct method to doing a quick start in Egypt.
Licensing- In this method company or manufacturing industry get the license to operate
its business in the country by which the licences have been issued. With use of licensing
people get involved in running their own business. Licensing is the second best method
that Dyson company can use to enter in Egypt market, Because in this method the
company having a right to start their business in their countries and directly compete in
the market. Along with it also helps the Dyson company to build their image easily
because, people start knowing their company.
Partnering and strategic alliance- Companies also use the method of doing partnership
with local businessman of different nations to enter in their markets. Making strategic
alliance is related to the concept in which two or more business entity make a contract
stating the condition they will work for given period of time in order to achieve the
common goal which has been set by them. Dyson company also have another option to
start their business in Egypt, that they can doing partnership with other company. This
method give more beneficial for the Dyson company because, it helps to knowing better
the condition of the market or strength and weakness of the market.
7
Document Page
Dyson can choose any of the method which have been discussed above for its expansion in the
international market. But exporting could be great choice for the company as it is already
mentioned as the easiest way to expand the business in different countries. Many other countries
also accept this method of expansion, as it allows the companies to reach through new consumers
and offer their products to them. Other benefit of selecting exporting as the best method for
international business is that it also enhances the economic growth and value of the currency in
the domestic country. If Dyson feels that their product is not much effective in United Kingdom,
then by exporting they can represent their brand to the new market and also achieve the
competitive advantage in the international markets. Government of various countries also
provide funds to those companies who want to establish their business in the exporting. Through
exporting Dyson will able to get the market with no boundaries, and get various sources from
where profit can be raised (Orra, 2021).
Benefits of International Trade
Currently, many organisations are trying to spread their business in the international
market which helps in issuing vast quantity of different goods to the customers in the country
and helps improving their standard of living. International trade helps in assigning and utilising
the resources in the best possible way which reduces the wastage of resources by the companies.
More employment opportunities have generated because of the company's expansion in the
international trade and formation of new industries in these market. It also helps company is
improving the image and good will of the brand in the foreign countries. If the Dyson company
doing their business in Egypt so it is very beneficial for their growth. They get the positive
outlook which is supported by the foreign direct investment, along with the Egypt government
provide investment and loans to Dyson company to start their business in their country. Egypt is
the great place to start their business, because they having a demand of the vacuum cleaner.
Disadvantages of international trade
There are several drawbacks for the companies which are expanding their business in the
international market like problems in understanding the languages of the local labour or
consumers, which may result in improper management for conveying company's message to
their target audience. Imposition of custom and duties by the government of the country may
8
chevron_up_icon
1 out of 17
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]