Dyson Market Analysis
A marketing plan for a consumer product, namely, dry cleaner with the potential to expand into light commercial use is envisaged to be prepared on the instructions of the CEO of the Dyson Company. The present paper is an effort in that direction in capacity of vice president of Dyson.
For Dyson company to develop competitive dry cleaners in the market, it should establish a product development team that will help it in researching the dynamics of the industry (Roy, 2016). As such, the institution should conduct different analysis including PESTEL, SWOT, and Porter’s five forces.
PESTEL Analysis
Political
As a British company, getting funds in the country is restricted, which limits the ability of the company to extend its operations, especially in areas, such as research and development. Moreover, other existing legislation including tax laws and imports restriction may limit the enterprise’s ability to acquire modern equipment to manufacture modern vacuum cleaners.
Economic
Dynamic factors, such as the changing growth and interest rates may greatly affect the ability of the institution to make long-term commitments and plans. The high level of uncertainty in the current U.K. market also limits the company’s ability to increase its investments.
Social
Dyson has been successful over the years in maintaining proper relations with its customers both in the domestic and international markets (Dyson, 2018). However, clients’ needs and preferences are constantly changing, and the organization must develop products that satisfy both the needs and wants of their customers. The entity should also uptake its technological products and services in areas, such as sales and production departments.
Technological
Dyson has for many years maintained its position as being most innovative in the industry. This has enabled the institution to not only maintain high sales but also to match the level of competition in the market. However, the company is beginning to lose its control to institutions offering simple and cheaper machines. The company must, therefore, ensure they produce products that match the modern technology and emphasize creativity and innovativeness.
Environmental
The increasing concerns for businesses to adopt environmentally friendly methods of productions have enabled the institution to increase awareness. Considerably, the firm is aiming at producing more energy-sufficient vacuum cleaners. The institution also provides information on how to effectively use their products to help reduce environmental pollution.
Legal
As an international institution, Dyson must comply with the regulations of the different states to enable smooth operations. Some of the rules the firm should comply with include employment policies, trademark registration, safety rules, and patent requirements.
SWOT Analysis
Dyson’s strength lies in the innovative and high-quality products it develops. These commodities use the modern technology with bright colors that enable their customers to choose from the variety. Furthermore, the company offers a warranty of between 3 to 5 years on their products, thus enabling customer confidence (Business Wire, 2018). However, Dyson suffers from different weaknesses including its high pricing strategy. Additionally, some of the firm’s clients have over the years complained about the increasing failure of their washing machine products.
The opportunities for Dyson have been enhanced by its global expansion strategy that has seen the institution open subsidiaries in over 50 countries. The firm can, therefore, exploit the different markets to increase their average sales. Some of the threats encountered by Dyson include the threat of new and innovative companies in the industry and the emergence of cheaper and more effective vacuum cleaners in the market.
Porter’s Five Forces Analysis
Threats of New Entrants
The company has differentiated its various products that have enabled the institution to apply any new technology in the market effectively. This has enabled the company to maintain its high level of competition. However, some new enterprises such as Grey Technology have intensified their use of modern technology in the production process, thus establishing a strong foundation in the market (Dyson, 2018). Additionally, these new entrants are pricing their commodities lower, thereby limiting Dyson’s ability to attract customers.
Threats of Substitute Products
Having the largest market share in the U.K has enabled Dyson to be the leading vacuum cleaner manufacturer in the country for many years. The institution has been successful in the provision of technical support to their loyal customers. However, in the global market, the company faces a high level of rivalry and should limit their rate of penetration in different international markets (Roy, 2016).
Bargaining Power of Customers
Dyson values the different types of customers that it serves. As such, the institution considers clients’ taste and preferences in designing and manufacturing their products. High demand for the vacuum cleaner developed by the institution originates from the need for replacement once the commodity reaches the end of its useful life.
Bargaining Power of Suppliers
Dyson has also empowered it supplies across different spheres to enable them to feel like part of the institution. As such, the firm differentiates inputs and concentrates on satisfying the needs of this population, particularly through enabling prompt payment.
Rivalry among Competitors
The company faces various complications from its competitive environment. The industry is constantly growing, and new entrants offer more affordable and advanced products. This limits the competitiveness of Dyson in the industry. Additionally, this has prompted increased differentiation of the substitutes to enable customers to acquire the products of their choice.
References
Business Wire. (Februrary 15, 2013). Research and Markets: Dyson Group plc-Strategic SWOT Analysis Review: 2013. Retrieved from https://www.businesswire.com/news/home/20130215005635/en/Research-Markets-Dyson-Group-plc—Strategic
Dyson. (2018). Dyson | Dyson for Business | Overview | Dyson. Retrieved from https://www.dyson.com/for-business/dyson-business/dyson-for-business.html
Roy, R. (2016). A story of innovation: The cyclone vacuum cleaner invented by James Dyson. Creative Academic Magazine. doi: http://oro.open.ac.uk/id/eprint/46083