MSC MANAGEMENT

MODULE NAME GLOBAL STRATEGY AND SUSTAINABILITY

DYSON LTD.

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 Table of Contents
Introduction....................................................................................................................................................3
Discussion......................................................................................................................................................4
Task 1 Analysis of External and Internal Market Environment................................................................4
1.1 External Environment Analysis...........................................................................................................4
1.2 Internal Market Analysis......................................................................................................................6
1.3 Dyson competitive Advantage.............................................................................................................7
Task 2: Strategy in Global Environment.......................................................................................................8
2.1 Motive for Dyson’s global expansion..................................................................................................8
2.1.2 Overall impact on firm strategy:...................................................................................................9
2.2 Identifying Strategic option model......................................................................................................9
2.3 Entry Strategy....................................................................................................................................10
Task 3: Corporate Tactics............................................................................................................................10
3.1 Corporate Tactics...............................................................................................................................10
3.2 Model to boost profitability...............................................................................................................11
Task 4: Ethics and CSR...............................................................................................................................12
4.1 Analyze and Evaluate Dyson CSR....................................................................................................12
4.2 Ethical issue face................................................................................................................................13
Conclusion...................................................................................................................................................14
References....................................................................................................................................................15
Appendix......................................................................................................................................................20
Appendix 1: VRIO framework Dyson.....................................................................................................20
Appendix 2: Porter five force For Dyson................................................................................................20
Appendix 3: OLI framework...................................................................................................................20
Appendix 4: Value Chain.........................................................................................................................21
Appendix 5: Ansoff Grid.........................................................................................................................21
Appendix 6: Carroll’s CSR framework...................................................................................................22

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Introduction
In 1991 Dyson Ltd. is a technology based Organization founded by Sir James Dyson in England. It is also
determined that firm is recognized for its innovative household appliances such air purifier, vacuum
cleaners, bladeless fans, and more (Dyson, 2022). According to study of Dyson (2023), it is exhibited that
Dyson has gained international recognition in 2017 by announced its global expansion for its engineering
prowess, commitment to innovation, sleek design aesthetic and expansion. Additionally in 2022 firm
announced revealed its plans to inject an additional $1.5 billion for investment in country expansion like
East Asia, Europe, and more outlined by Dyson, (2023).

The leading breakthrough experienced by Dyson’s is diminishing performance of vacuum. This approach
introduced the bagless vacuum cleaner which identified as industry evolution by facilitating powerful
suction without the need for disposable bags. This innovation coupled with Dyson focus on cyclonic
separations technology, propelled the firm to the competitive edge in the market (Dyson, 2023). The firm
has also ventured into other areas like lighting, dryers, and even electric vehicles aiming to expand its
business in global market and tap competitive edge (Dyson, 2022). The success of the firm cannot limit to
innovative products but also for its vertical integration approach to manufacturing and design. Meanwhile
Dyson also has prioritized sustainability in its operations. This includes initiatives like using recycled
materials in product manufacturing, reparability, and reducing carbon emission in its supply chain (James
Dyson Foundation, 2023).

This report aims to provide an overview of the potential avenues for Dyson’s continued growth and its
commitment to sustainability. In this context the following section of the report delve into various aspects
including internal and external environment, strategy in global environment, corporate tactics, and
strategic purpose aiming to maintain its competitive edge along with contributing to a more sustainable
future.

Discussion

Task 1 Analysis of External and Internal Market Environment

1.1 External Environment Analysis

Market of household appliances recognized diverse market, as it is noted concerned industry is not
limited to coffee machines but also includes electric cookware, vacuum, dryers, fanes and more.
Moreover, with increasing diversity demand for house appliances gradually increases in the global
market. For instance, in 2021 the market size of the home appliances was valued at 646.56 $ billion which

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is projected to grow 720.59 $ billion in 2023 to 1100.4 $ billion by 2031 in global market, exhibited at
CAGR of 5.5 percent (Fig 1; Fortune Business Insights, 2022). It is outlined in their study that during
pandemic in 2020 the sale of household appliance decline 4.65 percent as compared to 2019 because
certain lockdown and restriction of migration. However, with culture of WFH and increasing household
income in 2021 the demand for household appliances is a basic need for the individuals and gradually
increases its demand. At the same time it is also determined that increasing population, rising trend of
urbanization and maturity of the market demand the demand of home appliances high in North America
and Europe, and snowballing in Asia outlined in study of Statistics, (2023).

Figure 1 Market Size of Household appliances 2018-2029

(Source: Fortune Business Insights, 2022)

Thus support of the market size this section of the report studied macro environment (external
environment), using PESTEL framework to enter into a European market a country of UK.

Table 1 PESTEL framework for Dyson to enter into European market

Political The factor of political put great affect on business performance of Dyson. When it
comes to UK, political laws have very easy for Dyson or other company. However in
recent times, Post-Brexit government of UK may experienced some unstable
conditions that affects the Dyson firm performance in context of sales, supply chain
and cost incurred in the production. For instance, Brexit resulting reducing net
population decreasing to 13 percent between 2019-2020 because of restriction
immigration rules (Migration Observatory, 2023). Thus to alleviate risk of instability
Dyson need to assess or revised trade agreements and regulation between UK and EU

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 to enhance their operations (Aditya, 2023).
Economic The factors of economic such as growth rate, rate of interest, and exchange rate can
influence the Dyson business performance in diverse market. For instance, if growth
rate is high in specific nation the market is expected to good for Dyson with increasing
sales and vice versa. In context of EU according to IMF, the annual growth rate of EU
has been second largest economy in the world after USA. In 2024 it has been nearly $
19.35 trillion and gradually increases 26.64 trillion resulting demand of Dyson
products (Ali, 2023).
Social In the current times, customer are aware of what they need so it is vital for Dyson
produce a product that is fulfil the demand of its consumer in term of product quality
as well as customer services. It is found that 72.6 percent population of EU lives in
Urban areas and 41.6 and 31 percent in cities and towns (CESifo Forum, 2019). Thus
considering rate of urbanization in EU, Dyson focuses on innovate its products to
maintain competitive edge.
Technological Dyson is recognized for its innovation to enhance quality life of the customer. Thus to
grasp largest market share of EU i.e. urban areas Dyson keeps adapting innovation of
latest technology to sustain ahead in competitors and gain brand reputation (Migration
Observatory, 2023).
Environment Now days, people are highly concerned about environment. Thereby Dyson committed
to sustainability of promoting eco-friendly products to sustain in competitive market.
For instance in 2023 the carbon emission was estimated 787 tonnes. Thus to sustain its
business Dyson abide EU regulation related to environment to reduce carbon footprints
and promote energy efficient goods (Europe, 2023).
Legal Dyson operates its business in global market, thus compliance with rules and
regulation of different countries is difficult. Adhering to EU consumer protection laws
and regulations, IP address regulation is vital for Dyson to strive success (Aditya,
2023).

1.2 Internal Market Analysis

Table 2 VRIO framework

Valuable  Culture of Dyson is recognized for its innovation consistently developing

cutting edge technology to meet customer needs. Thus constant innovation
force Dyson to holds numerous patent aiming to contribute competitive

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 edge. For instance-in 2019 firm announced intended design and
manufacture EV as innovative products (Dyson, 2023).
Rare  Dyson Cyclone Technology utilized its vacuum cleaner and other products
which considered relative rare in the production (Dyson, 2024).
 Dyson digital motors known for compact size and high efficiency
considered rare resources.
 Dyson engineering expertise focuses on R&D and perceived at rare assets
(James Dyson Foundation, 2023).
Inimitable  Dyson brand identity and reputation difficulty to replicate by competitors
like LG, Whirlpool as they built consistent investment in development of
products, customer experience (Dyson, 2023).
 Firm has strong R&D capabilities including multi disciplinary team,
designers, and proprietary testing facilities. For instance, globally firm has
more than 14000 staff.
 Dyson vertical integration processes of manufacturing such as innovative
manufacturing facilities, SC make it difficult for competitor to replicate its
efficiency and standard quality of products (Dyson, 2023).
Organized to  Dyson has established strategic partnership with suppliers, retailers, and
exploit technology firm to leverage complementary strengths and expand its
market reach (Adankasi, 2023).
 Dyson focuses on counter customer preferences and needs this ensure that
resources are organized to exploit market opportunities effectively
 Dyson invest in attracting and retaining top talent of engineers, marketing,
design team and other areas aiming to drive innovation (Dyson, 2022).

1.3 Dyson competitive Advantage

Table 3 Porter’s five force

Buyer power Customer in EU market has vast choice when it comes to home appliance.
However, Dyson differentiated products, innovative features, and brand image
give some pricing power to firm. However high competition (Bosch, GE, Haier)
gives buyer an option to switch towards alternative brands (Aditya, 2023).
Supplier power Unlike Bosch, Dyson has diversified supplier base into international market, thus
dependency of any single supplier is reduced and limit supplier bargain power.

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 Dyson strong brand value and high purchase volume give leverage in negotiating
favourable terms with suppliers (Prezi, 2023).
Threats of rivalry Home appliance and personal care industry is relatively concentrated as Dyson
faces competition from established brands like Philips, Miele and other brand
(Adamkasi, 2020).
Threats of entrants High investment in R&D, manufacturing facilities, act as barrier for new
competitor.
Dyson strong brand reputation and loyal base of customer in EU make
complexities for new entrants to compete.
Compliance with EU regulation concerning product safety, environment
standard, IP rights posed challenge to new entrants (Visual paradigm, 2023).
Threats of substitute Strong brand loyalty and innovative technology used by Dyson limit
attractiveness of substitute to customer (Micro, 2023).

Task 2: Strategy in Global Environment

2.1 Motive for Dyson’s global expansion

OLI framework of Eclectic paradigm model is a prominent model used to analyze Dyson’s motives for
global expansion into EU. This model recommended that firm engage in FDI when they possess
advantage of ownership (O), counter location specific benefits (L) and internalized these benefits through
internalization advantage (I) outlined by CFI Team, (2023).

a. Ownership benefits: Unlike Bosch a global firm, Dyson possesses various ownership benefits
that make global expansion into EU attractive. This includes its strong brand image for
innovation, technological expertise in products design and engineering, IP rights over its
proprietary tools. These benefits enable Dyson to offer differentiated products with high
perceived value and committed to charge premium cost for its products in EU market (Jafari-
Sadeghi et al. 2021).
b. Location advantage: Unlike GE, for expansion Dyson targeted 72.6 percent population of EU
lives in urban areas as it make attractive (CESifo Forum, 2019). This means maximum customer
based, advanced infrastructure facilitate innovation in Dyson product and increase demand for
home appliances (Dvouletý et al. 2021).

Internalization benefit: By directly investing in EU, Dyson can explore internalize advantage of its
location and ownership specific benefits (Eberhard et al. 2020). This facilitated that Dyson to

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 maintain control over its brand, customers, channels of supplies, and more aiming to increase share of
market, and retail firm profits (Gayatri et al. 2023).

2.1.2 Overall impact on firm strategy:

a. Market Diversification: Entering into EU market diversifies Dyson global presence and
reducing dependence over single market. This reduces risk align with regional economic
fluctuations and political instability (Paul and Feliciano-Cestero, 2022).
b. Revenue Growth: By tapping into EU market, Dyson access new revenue streams and capitalize
on the regions strong customer demand for innovative home appliances. For instance- Targeting
population lives in EU urban areas i.e. 76.2% (Stahl and King, 2020).
c. Innovation and differentiation: Dyson expansion into EU provides opportunities to replicate its
innovation expertise in product design and sustain brand image in technology. This enhances
Dyson competitive edge and reduce alternative of substitute. For instance- Bagless vacuum
cleaner using cyclone separation technology (Simmons and Durkin, 2023).

2.2 Identifying Strategic option model

Ansoff Matrix is a prominent model used for identifying strategic alternatives for internalization. It is
determined by Kyle (2023), Ansoff model recommended four growth tactics based on current and new
market and products. Thus unlike global firm GE, Bosch to enter into EU Dyson, market development
followed by product development is most suitable options.

A. Market Development: It is an option where firm entered into new market with current product.
To entering into EU market Dyson offered current range of innovative home appliances
(Chintalapati, 2020).
a. Strategic approach- Dyson could tailor its marketing tactics and channel of distribution to
cater need of EU customer. This may involve adapting product design, features, and pricing
to align with EU market trends (Clarissia, 2022).
b. Implementation- Dyson can establish intricate connection with EU retailers; online platform
and SC to expand its market reach and enhance brand visibility (Cinthya and Rustiadi, 2022).
B. Product Development: Involves introducing new product or established variation to existing
market. For Dyson it could be developing products specifically tailored to the EU market or
introducing new products lines to complement its existing offerings (Băbeanu, 2022).
a. Strategic Approach: Dyson can leverage its expertise in innovation and technology to develop
products that counter specific needs and preferences of EU consumer. This may considered
introducing products with features optimized for EU homes, like compact designs, or specialized
attachments for different floor types (Czinkota et al. 2021).

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 b. Implementation: Dyson can conduct market research to identify gaps or unmet needs in the EU
market and prioritize product developments efforts accordingly. Collaborating with EU design
firms, engineers, consumer teams can aids Dyson ensure that new products resonate with EU
consumer preferences (Annmarie, 2021).

2.3 Entry Strategy

1. Direct Exporting: Unlike Bosh, Dyson opt for direct exporting by selling its products directly to
consumer in EU countries from its current manufacturing facilities or channels of distribution
(Vissak et al. 2020).
Implementation- Dyson can establish alliance with distribution firms to handle shipping and
distribution logistics. It can also set up localized online stores or leverage E-commerce platforms
to reach EU consumer directly (Ece and Göksel, 2020).

2. Joint Venture: Dyson can form a JV with a local partner (GE, Bosch) in EU, combining resources,
expertise and market knowledge to formulate presence in the region (Paul, 2020).

Implementation- Dyson can determine a reputable EU firm with a strong supplier channels, brand
presence, or market expertise to alliance (Katsikeas et al. 2020).

2. Wholly-Owned Subsidiary- Establish wholly-owned subsidiaries in EU countries, maintaining

full control over operations, tactics (Mboma et al. 2021).

Implementation- Dyson set up subsidiary offices, facilities of manufacturing or channels of

distribution in EU market. It can hire local talent to many daily operations (Tien et al. 2020).

Task 3: Corporate Tactics

3.1 Corporate Tactics

A. Horizontal integration- Acquiring or merging with companies (BSH group, SEC Group) operating at
same level of SC to expand share of market, reduce competition (Clarissia, 2020).

Benefits- increase control over critical input or technologies, Economics of scale

Challenge- Regulatory Hurdles, culture difference challenge (Aguilera et al. 2021).

B. Vertical Integration- Acquiring or merging with companies (Haier, Whirlpool) operating at different
levels to the SC either upstream or downstream to gain control over inputs, processes, and distribution
channels (Hernande and Menon, 2021).

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Benefits- Greater control over quality, cost, and delivery times of critical inputs or processes; reduce
dependency on external supplier, capturing additional values, margin along the SC.

Challenges- require capital investment, operational complexities and risk associated with handling
integration activities across multiple stages (Kraus, 2020).

C. Outsourcing: Contracting out certain firm functions, processes or activities of third party aiming
to reduce cost, enhance efficiency
Benefits- Cost saving, operational efficiencies, flexibility (Paul, 2020).
Challenge- Loss of control over outsource process, dependency on external vendors,
D. Strategic alliance- Engage collaborative partnership between two or more firms to attain shared
goals, like market expansion, development of technology

Benefits- Access specialized skills, shared risk, and cost, accelerate innovation

Challenge- Conflict (Cinthya and Rustiadi, 2020).

Thus Dyson ltd could combine of following corporate tactic to enhance its global SC, depending on its
strategic priorities, resources, and market conditions.

3.2 Model to boost profitability

Value chain:

A. Primary activities
a. Inbound- Dyson purchase its elements from supplier in East Asia in better terms aiming to
manage inventory with reducing freight cost (CFI Team, 2023).
b. Operations- Dyson R&D invests advanced software to reduce cost of product design. This
software is prototype model aids to optimize process.
c. Outbound- Enhancing channel of distribution and implement efficient order fulfilment
process to reduce cost of transportation (Katie and Wesley, 2024).
d. Marketing sales- Dyson products sales occur both E-commerce and retail stores in operating
courtiers. Marketing campaign of Dyson is more informative to educate customer about
products feature aiming to influence decision of purchase (Donny, 2022).
e. Service- Dyson offered after sale service like proactive maintenance program, timely
customer service via investing CRM aiming to boost customer satisfaction (Meredith, 2023).
B. Support Activities:
a. Procurement: Strait of Malacca has a port series that aids Dyson to save transportation cost

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 b. Technology development: invest into R&D drive innovation in products aids Dyson access
competitive edge (CFI Team, 2023).
c. HRM: Dyson has strong multidisciplinary team and firm also invested into staff growth and
development to retain to talent aiming to boost firm productivity (Dock, 2023).
d. Infrastructure: Firm invested into infrastructure facilities like opening manufacturing plan,
distribution channels, service centres to enhance workflow efficiency (Abby, 2023).

Task 4: Ethics and CSR

4.1 Analyze and Evaluate Dyson CSR

Carroll CSR pyramid framework

a. Economic Responsibilities- like Bosch, Dyson serves its economic responsibilities of generating
revenue by selling innovative products through investing in R&D (Dyson, 2023).
b. Legal responsibilities- Dyson complies with regulatory framework of countries in which they
operations. This emphasizes product safety, environment regulation, IP rights and more (Dyson,
2024).
c. Ethical Responsibilities-Dyson replicates transparency, fairness, and integrity in their business
approach. Example- Firm purchase ethical sourcing material, fair treatment to its staff, honest
marketing, and using recycling products in manufacturing process to reduce emission (Dyson Co,
2022).
d. Philanthropic- Firm supporting various social and environment cause through donation,
community initiatives. Example- Engaged in STEM program aiming to commit investing in
future talent (Liang and Yoon, 2023).

Stakeholder Theory

The aforementioned theory plays vital role aiming to serves need of all firm stakeholder to strive
long-term success. The following suggestions

a. Conducting regular stakeholder consultation via survey, feedback, meeting to identify interest and
needs of all stakeholders employees, customer, government (Hoffmann-Burdzińska et al. 2020).
b. Dyson should conduct materiality assessment to determine most significant social, governance
and environment risk related to business aiming to improvise its CSR efforts to attain
sustainability goals (Prabhakar, 2020).
c. Dyson should adopt integrating reporting practice by facilitate transparency into financial
performance (Ma, 2021).

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4.2 Ethical issue face
Carroll CSR pyramid framework

Philanthropic- As manufacturer of home appliance, Dyson face environmental issue of emit carbon
footprint, depletion of resource (Dyson, 2023).

Recommendation- Prioritize sustainable eco-friendly products, set target for reduce carbon footprint,
invest renewable energy

Legal- Lack of transparency in the SC including supplier relationship, sourcing practice, lead ethical risk
if human right abuse, corruption.

Recommendation- Enhance reporting, conduct due diligence, collaborate with stakeholders (Dyson co.
2023).

Conclusion
Study of report it is found that Dyson counter fails performance of vacuum cleaning business. Meanwhile
to sustain its brand firm diversify its core strength into innovation and facilitate sustainability practice. It
is also concluded that Dyson also experienced impressive performance in EU market through Adherence
of regulation and invest in R&D. Moreover, to enter into EU market firm studied external and internal
market, corporate strategy and more.

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Appendix

Appendix 1: VRIO framework Dyson

(Source: https://freepestelanalysis.com/vrio-analysis-of-dyson/#google_vignette)

Appendix 2: Porter five force For Dyson

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 (Source: https://www.ukessays.com/essays/business/dyson-a-distinctive-company.php)

Appendix 3: OLI framework

(Source: https://www.business-to-you.com/choosing-the-right-entry-mode-strategy/#google_vignette)

Appendix 4: Value Chain

(Source: https://www.zendesk.com/blog/value-chain-analysis/)

Appendix 5: Ansoff Grid

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 (Source: https://corporatefinanceinstitute.com/resources/management/ansoff-matrix/)

Appendix 6: Carroll’s CSR framework

(Source: https://www.mindtools.com/avhp0vj/carrolls-pyramid-of-corporate-social-responsibility)

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