...head: DYSON VACUUM CLEANER CASE ANALYSIS Dyson Vacuum Cleaner: Shifting from domestic to international marketing with the famous bagless vacuum cleaner International Marketing – Assignment 2 Candidate: Emad AbouElgheit ISM - International School of Management Doctor of Philosophy (Ph.D.) Presented to: Professor Peter Horn 2 February 2012 Word Count: 4,326 1 CASE ANALYSIS - DYSON VACUUM CLEANER 2 Abstract After dominating the local UK market and successfully developing a new market in the US, Dyson, the ambitious vacuum cleaners manufacturer still competes in the mature global market of vacuum cleaners. Adopting a differentiation strategy since its inception, the company aims to take its brand to the next level and to expand into new grounds. This comes in a critical time after a declining market share in its high end vacuum cleaners segment, and withdrawing its innovative and very expensive washing machine from markets. The paper attempts to select the most potential global markets for Dyson to put more marketing investments. The paper suggests those markets to be mostly Scandinavian. The paper also aims to shed the light on the mass distribution strategy adopted in the US market by Dyson. Finally the paper studies the opportunity for Dyson to repeat the huge success of its vacuum cleaner to enter new product category of washing machines. Keywords: Vacuum Cleaners, Dyson, International Marketing, Upright Vacuum, Household Vacuums, Home...
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...head: DYSON VACUUM CLEANER CASE ANALYSIS Dyson Vacuum Cleaner: Shifting from domestic to international marketing with the famous bagless vacuum cleaner International Marketing – Assignment 2 Candidate: Emad AbouElgheit ISM - International School of Management Doctor of Philosophy (Ph.D.) Presented to: Professor Peter Horn 2 February 2012 Word Count: 4,326 1 CASE ANALYSIS - DYSON VACUUM CLEANER 2 Abstract After dominating the local UK market and successfully developing a new market in the US, Dyson, the ambitious vacuum cleaners manufacturer still competes in the mature global market of vacuum cleaners. Adopting a differentiation strategy since its inception, the company aims to take its brand to the next level and to expand into new grounds. This comes in a critical time after a declining market share in its high end vacuum cleaners segment, and withdrawing its innovative and very expensive washing machine from markets. The paper attempts to select the most potential global markets for Dyson to put more marketing investments. The paper suggests those markets to be mostly Scandinavian. The paper also aims to shed the light on the mass distribution strategy adopted in the US market by Dyson. Finally the paper studies the opportunity for Dyson to repeat the huge success of its vacuum cleaner to enter new product category of washing machines. Keywords: Vacuum Cleaners, Dyson, International Marketing, Upright Vacuum, Household Vacuums, Home...
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...M17_HOLL6227_05_SE_C17.qxd 5/20/10 4:06 PM Page 641 CASE STUDY IV.3 Dyson Vacuum Cleaner: shifting from domestic to international marketing with the famous bagless vacuum cleaner The Dyson history It is impossible to separate the very British Dyson vacuum cleaner from its very British inventor. Together they are synonymous with innovation and legal battles against established rivals. James Dyson was born in Norfolk in 1947. He studied furniture design and interior design at the Royal College of Art from 1966 to 1970 and his first product, the Sea Truck, was launched while he was still Courtesy of Dyson. studying. Dyson’s foray into developing vacuum cleaner technology happened by chance. In 1978, while renovating his 300-year-old country house, Dyson became frustrated with the poor performance of his conventional vacuum cleaner. Whenever he went to use it, there was poor suction. One day he thought he would find out what was wrong with the design. He noted that the appliance worked by drawing air through the bag to create suction, but when even a fine layer of dust got inside, it clogged its pores, stopping the airflow and suction. In his usual style of seeking solutions from unexpected sources, Dyson noticed how a nearby sawmill used a cyclone – a 30-foot-high cone that spun dust out of the air by centrifugal force – to expel waste. He reasoned that a vacuum cleaner that could separate dust by cyclonic action and spin it out of the airstream...
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...Introduction 3 1) A creator: James Dyson 3 2) Early products by James Dyson 4 3) A new idea 4 4) The $ 2000 vacuum cleaner 4 5) The first Dyson 4 3. Product 5 1) Vacuum cleaners 5 2) Hand Dryer 5 3) Washing Machine 6 4. R&D 7 5. Marketing 7 1) Evolution of Dyson in the market 7 2) Turnover 8 3) Differentiation Strategy 9 4) Focus Strategy 10 5) Cost Strategy 10 6. Innovation 11 1) The innovator’s challenge 11 2) Fast transition from concept to 3D 11 3) Rapid prototypes from design data 12 4) Computer simulation boosts design accuracy 12 5) Protecting their innovations 13 7. Analysis 13 1) Porter’s Five Force Model 13 Existing Rivalry 14 Bargaining Power of Supplier 14 Potential Entrants 14 Threat of Substitutes 14 Bargaining Power of Buyer 15 2) SWOT Analysis 15 Strength 15 Weakness 15 Opportunity 15 Threat 16 1. Abstract In 1978, James Dyson noticed that the air filter of the workshop where the spraying finishing operations on Ballbarrow models was constantly obstructed powder particles (like a vacuum cleaner bag is blocked by dust). He has designed and manufactured industrial cyclone tower, which removed the powder particles by exerting a centrifugal force 100 000 times the force of gravity. The same principle could he operate in a vacuum? James Dyson began to work. Five years and 5,127 prototypes later, the first Dual Cyclone bagless Vacuum cleaner was created. Then a legend of Dyson was come into being. He cooperated...
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...Adam Rostom, group marketing director of Dyson, speaks to Jonathan Bacon about the new motor for growth that will drive the brand’s expansion into China. Marketing Week (MW): Dyson launched in China this month. Why are you targeting this market? Adam Rostom (AR): There are around 400 million households in China but only 3.5 million have vacuum cleaners, so there is a big opportunity for us. We produce compact, energy-efficient machines and we know that type of technology is attractive across the world. Our core proposition is interesting to the Chinese people but there are also certain nuances, where their habits are not as established as they might be in other markets. In the UK, 98.5 per cent of households have vacuum cleaners, but in China that figure is only 1 per cent, so we need to explain to them how our products can be applicable to their lives. MW: What is the brand’s strategy in China? AR: PR is the backbone of our marketing as we find that it is the product reviews and recommendations that carry most weight. We are focusing on Beijing and Shanghai to start with and are launching with a full repertoire of Dyson products, from vacuum cleaners to our hand-dryers and fans. All of these products have their own claims about being superior so getting that across to people in an easily digestible way is a challenge. The Chinese retail space is also intricate and there will be challenges around rolling out across a number of stores quickly. We’re looking to appoint a retail...
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...I. Synopsis: Case: The HOOVER COMPANY, Plaintiff, v. BISSELL INC., Defendant. No. 5:98-CV-1088. United States District Court, N.D. Ohio, Eastern Division. March 19, 1999. A. The Hoover Company History: Hoover vacuum cleaners have markets in the United States and Canada. In addition to vacuum cleaners, Hoover also produces and sells high quality washers and dryers. Maytag acquired The Hoover Company in 1989, providing Maytag an important foothold in the highly competitive international market. The company roots back to 1827, when Henry Hoover established a plant near Canton, OH. 80 years later led to him and his sons selling vacuum cleaners after purchasing rights to an electric suction sweeper, which was invented a year before by a guy named Murray Spangler. In 1908, Hoover bought Spangler’s patent, kept him as a partner and soon named the company Hoover Suction Sweeper Co. Hoover than began marketing the sweeper in stores all throughout the country. By 1921, Hoover had gone global and by 1923, sales reached $23 million. Hoover today specializes in all floor care and is a continued leader in the industry (Hoover: Fundinguniverse, 2006). B. Bissell Inc. Company History In 1876, Melville Bissell began marketing his carpet sweeper invention with revolving brushes. The revolving brushes picked up the dust and dirt and deposited it inside the sweeper housing. Being dependent on the rotation of the wheels to drive the sweeping mechanism, it only removed debris from...
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...Brunel Business School Draft Working Paper: November 2006 Innovation: Basic Concepts and Models By S. N. Nasirpourosgoei and A-M Coles For many firms the development of new products is a major business activity, although Ettlie (2006) points out that many new products are merely copies or imitations of existing ones. The study of innovation is concerned with identifying how firms use their existing knowledge and technical resources to develop goods, processes and services that are significantly novel. Innovation is often seen as a key driver of economic growth for a country and increased firm productivity (Gann, 2003 cited in Abbott and Jeong, 2006). Trott (2005) demonstrates that the industrial revolution of the nineteenth century was fuelled by technological innovations, while Abbott and Jeong (2006) argue that there is now increasing emphasis on the importance of innovation for long-term economic success. At an organisational level, specific benefits include such factors as market growth, reductions in production cost, competitive positioning and opening up of new markets (Slaughter, 1998). For Ettlie the key questions in the study of innovation relate to the way some firms can utilise individual creativity in innovation more successfully than others. Innovation is has become a vital part of business survival and is supported by much academic study into reasons for its success and failure, for example, in 1994 – 1995, 275 books published in the US had the word ‘innovation’...
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...At a time when lide has rerely benn tougher for manufacturers in the developed world, miele’s strategy for survival is to break almost all the rules. The german company, a global leader in high-quality domestic appliances such as washing machines and vacum cleaners, is renowned for its exavting manufacturing standards and its refusal to move down-market and compete on price. Miele bases nearly all its manufacturing in high-cost Germany and is self-sufficient to a high degree. Rather than outsource to low-cost supliers, it makes 4m electric motors ayear (enough for all its products) in its own plant near cologne. Which it says is essential to maintain its quality standards. Sales last year werw E2.2bn (L1.5bn) The approach commands respect among miele,s industry peers. ‘it is the Rolls-Royece of the industry, with a fantastic position at the top end,’ says Andrea Guerra, chief executive of Merloni, the italian white goods maker. But the domestiic appliance sector is one of europe’s most competitive and inevitably questions are being asked about how long miele can stick to what many see as its old-dashioned ways, before succumbing to lower-costt rivals. In fact, whether miele survives in its current form over the next decade will be an important test case for the whole of european manufacturing. The company sells appliances ranging from dishwashers to coffee machines, most commanding a price premium of up to 70 per cent over the competitors’ wares. It spends 12 per cent of its...
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...INTF 355 International Technology Management Course Book: Paul Trott, Innovation Management and New Product Development, 5.th Ed Learning objectives and Some Discussion Questions for Mid Term Exam • Recognise the importance of innovation • Explain the meaning and nature of innovation management • Provide an introduction to a management approach to innovation • Appreciate the complex nature of the management of innovation within organisations • Describe the changing views of innovation over time • Recognise the role of key individuals within the process • Recognise the need to view innovation as a management process. Discussion questions A number of chapters have several Pause for thought questions to help the student reflect on what they have just read to check their understanding. Examples: Not all firms develop innovative new products, but they still seem to survive. Do they thrive? This question attempts to get the students to recognise that while innovation is important it is possible to survive especially in the short term by focusing on traditional concerns such as minimising costs and generating sales. In the longer term, however, few firms will survive for long without the need to change; and that means introducing new ways of working and new products and services. If two different firms, similar in size, operating in the same industry spend the same on R&D, will their level of innovation be the...
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...Case study notes This case has been updated to include the Apple iPad. Principally this is case explores the issue of licensing and how successful firms can become unsuccessful. It is not a case about Apple and why it has become successful. This case study explores the rise of the Apple Corporation. The Apple iPod is one of the most successful new product launches in recent years, transforming the way the public listens to music, with huge ramifications for major record labels. More than 50 million MP3 players are expected to be sold in 2005; over a third more than last year. Mobile phones have long been regarded as the most credible challengers to MP3 players and iPods. The launch of digital download services via mobile phones illustrates the dramatic speed of convergence between the telecom and media industries, which many observers expect to usher in a new era of growth for mobile phones. Users are willing to pay more for additional services and many analysts predict that mobile phone handsets will eventually emerge as the dominant technology of the age, combining personal organisers, digital music players and games consoles in a single device. Indeed, Microsoft founder Bill Gates has predicted that mobile phones will supersede the iPod as the favoured way of listening to digital music. The launch of the Apple ipad in 2010 makes this case even more topical. This should form the basis of supplementary questions at the end of the case: How will the iPhone succeed? What about...
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...Queen’s University Belfast Queen’s University Management School. MGT2005 OPERATIONS MANAGEMENT Semester 2, 2012 “You don’t have to change. . . Survival is not mandatory.” (Professor William E. Deming) Course Co-ordinator: Dr Yu Xiong Introduction to Operations Management Operations Management (OM) is a functional field of management encompassing the design, operation and improvement of the processes and systems employed in the creation and delivery of an organisation's products and services. Essentially, operations management is concerned with explaining how factories and services work. Managing operations well requires both strategic and tactical skills and is critical to every type of organization, for it is only through effective and efficient utilization of resources that an organization can be successful in the long run. A few common threads pervade the material we cover in this course: First, decision making in operations is highly context dependent. Recognising this is half the battle in managing an operation. The variety of operational contexts obscures the link between particular operational decisions and overall firm profitability. Making this link transparent is essential to making better operational decisions. Variability exists in any operation, and this variability needs to be managed Integration, both across functional areas within a firm, and across firms in the value creation and delivery network, is crucial for superior firm performance...
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...short-term the move to China was not good as it meant large cash outflows due to the redundancy payments, and the job cuts in the UK made Burberry receive an unethical, negative brand image and reputation, reducing sales and profits. Although in the long-term Burberry is likely to benefit from greater sales and so more profits, particularly due to lower labour costs, but this depends on the rate at which labour costs are rising in China relative to that of the UK, and how high the shipping costs are of the goods from China to the UK. Dyson: Dyson's very innovative bladeless fan was the result of 4 expensive years of R&D carrying large costs. Despite the technology being patented, there are a number of Chinese firms violating the IP rights by illegally copying the successful designs and producing cheap replicas. Consequently Dyson spent £3.5m pursuing often futile legal cases in Chinese court, increasing costs and reducing profits. Also Dyson suffered a loss of sales and market...
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...9780199203055_001_030_CH01.qxd 11/1/07 15:14 Page 1 Introduction: ‘business’ and its ‘environment’ Paul Wetherly and Dorron Otter Contents The approach of this book—themes and issues 2 What is business? 4 Business and the problem of scarcity 5 The private sector—on closer inspection 7 28 Review and discussion questions 29 Assignments 30 Further reading 30 4 The private sector of business Case study: ‘UK plc’ Other sectors of business—the public sector and the third sector 10 Online resources 30 A simple model of business in its environment— transforming inputs into outputs 13 References 30 Conceptualizing the environment of business 15 Interaction between business and the environment—responding, influencing and choosing 17 The nature of the internal environment 20 Types of organization structure 21 Environmental analysis 24 Summary 27 01 9780199203055_001_030_CH01.qxd 2 X 11/1/07 15:14 Page 2 Introduction Learning objectives When you have completed this chapter you will able to: l Recognize different uses of the term business, and understand the different forms of business in terms of, for example, private, public and not-for-profit organizations l Describe the complexity of the external environment in which business operates and explain the idea of environmental uniqueness l Understand the nature of the...
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...Environment 4.1. Investment Climate in Saudi Arabia 4.2. Overview of the Retail Industry in Saudi Arabia 4.3. Saudi Domestic Electrical Appliances Sector 4.4. Key Drivers for Saudi Domestic Electrical Appliance Industry 4.5. Saudi Domestic Electrical Appliance Industry – Major Trends and Forecast 4.6. Conclusion 27 27 33 40 43 55 56 5. Al-Hayat International Holding Co: Strategic Planning 5.1. Stakeholder analysis 5.2. Vision 5.3. Mission 5.4. Strategic Objectives 5.5. USP 58 58 58 58 58 58 6. The Business Plan 6.1. Product and Portfolio Analysis 6.2. Market Segmentation, Targeting and Positioning 6.3. Sales Propositions 6.4. Distribution: Strategic Options 6.5. Pricing: Strategic Options 6.6. Logistics: Strategic Options 6.7. The Marketing Milestones and the Roadmap 6.8. Promotional Strategy 60 60 61 62 62 63 64 65 66 September 22, 2008 2 Feasibility Study and Business Plan – Al Hayat 6.9. Appointment of a Business Development Company 6.10. Value Added Services...
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...Management Quality and Competitiveness Christoph H. Loch Stephen E. Chick Arnd Huchzermeier ● Management Quality and Competitiveness Lessons from the Industrial Excellence Award Prof. Dr. Christoph H. Loch INSEAD Boulevard de Constance 77305 Fontainebleau Cedex France christoph.loch@insead.edu Prof. Dr. Arnd Huchzermeier WHU-Otto Beisheim School of Management Burgplatz 2 56179 Vallendar Germany ah@whu.edu Prof. Stephen E. Chick INSEAD Boulevard de Constance 77305 Fontainebleau Cedex France stephen.chick@insead.edu ISBN 978-3-540-79183-6 e-ISBN 978-3-540-79184-3 Library of Congress Control Number: 2008925414 © 2008 Springer-Verlag Berlin Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and...
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