Environmental

Assessment
of Presented by : Shane Wilson

Company
 ABOUT DYSON
• British Technology Company, founded by British Inventor
James Dyson in 1987
• One of the most expensive household appliance brands
• Annual sales of about £1.7 billion. (Tovey, 2017)
• First company to commercially manufacture Bagless
Vacuum Cleaners, with “Cyclonic Separation Technology”
Cyclonic
Separation
Technology
 STRENGTHS
• Technology & Innovation (White, 2018)
• Design (Dickson, 2016)
• High Quality Products (Garun, 2013)
• Research & Development (Aouf, 2018)
• James Dyson Award & Foundation (The James
Dyson Foundation, 2018)
OPPORTUNITIES
• Increasing Demand for Premium Products
(Lancaster, 2017)
• Global Expansion (Lancaster, 2017)
• Economy of Scale
WEAKNESSES
• High Price (Soon, 2018)
• Brand Reach (Cnet, 2017)
• Patent Infringement (Milmo, 2011)
THREATS
• Innovations from competitors (Robert, 2018)
• Competitors with strong brand recognition
and many distribution channels (Robert, 2017)
• Rising Demand of Robotic Vacuum Cleaners
(Business Wire. 2017)
 INTERNAL FACTORS
STRENGTHS (+) WEAKNESSES (–)
S1-Technology & Innovation W1-High Price
TOWS Analysis S2-Design W2-Brand Reach
S3-High Quality Products
tows
S4-James Dyson Award & Foundation
W3-Patent infringement

S5-Research & Development

STRENGTHS (+) / OPPORTUNITIES (+) WEAKNESSES (-) / OPPORTUNITIES (+)
OPPORTUNITIES (+)
STRATEGY STRATEGY
O1-Increasing Demand for
Premium goods
(S1,O2) Innovate with a focus on efficiency
(W3,O2) Cut down on patent infringement cases
EXTERNAL FACTORS

O2-Global Expansion and affordability, to create distribution channels

by penetrating into local competitors market.
in emerging markets.
O3-Economy of Scale
THREATS (–) STRENGTHS (+) / THREATS (–) STRATEGY WEAKNESSES (–) / THREATS (–) STRATEGY
T1-Innovations from
competitors
T2-Competitors with strong (S4,T2) Globally expand the James Dyson
(W3,T1) Gain stronger political & legal ties, to
brand recognition and many Foundation, to improve brand recognition as
reduce stealing of innovations.
distribution channels well as create new distribution channels.
T3-Rising Demand of
Robotic Vacuum Cleaners
 Porter’s 5 forces Low
bargaining
power of Competitors use second hand
Acquires 2 billion parts from suppliers innovation, at more affordable
300 vendors (Marle, 2014)
prices (Business Wire, 2017)

Low threat High threat High threat

of new from from
entrants substitutes
competitors
Huge Capital required, difficulty
in creating distribution channel & Robotic & Automated
supply chain Appliances are becoming
popular. (Business Wire, 2017)
Dyson is an aesthetic Low
lifestyle product, a status bargaining
symbol (Bueno, 2011) power of
customers
 EC favors competitors on Energy Label
Political Regulations (Smith,2011)
£1.9M spent in Legal
expenses (Milmo, 2011)
Manufacturing offshore due
Legal Economic to high costs (Peston, 2011)

PESTEL
ANALYSIS
James Dyson Foundation,
Uses recyclable and encourages innovation and
environment friendly Environmental Social engineering (Aouf, 2017)
materials (Dyson Ltd., 2018)

Automated/robotic household
Technological appliances on the rise (Technavio,
2016)
 RECOMMENDATION
Introduce an Affordable sub-brand with product range having basic
design and components, but similar performance as flagship
products. Doing so, will ensure:
Competes with lower priced competitors

Reaches out to emerging markets & gain market share

Creates Distribution Channels & Improves political ties in these markets

Reduces competitor market share & patent infringement cases

Exposes competitors to the high cost of R&D

 REFERENCES
Aouf, R. S., 2017. Dezeen. [Online]
Available at: https://www.dezeen.com/2017/02/28/james-dyson-open-second-uk-campus-research-development/
[Accessed 25 March 2018].

Bueno, B., 2011. The Cult Branding Company. [Online]

Available at: http://cultbranding.com/ceo/the-power-of-brand-lovers-dyson-vacuum-cleaners/
[Accessed 25 March 2018].
Business Wire, 2017. Business Wire. [Online]
Available at: https://www.businesswire.com/news/home/20170501005731/en/Global-Household-Vacuum-Cleaner-Market-2017-2021-BISSELL
[Accessed 25 March 2018].

Cnet, 2017. Cnet. [Online]

Available at: https://www.cnet.com/topics/vacuum-cleaners/best-vacuum-cleaners/
[Accessed 25 March 2018].
Dickson, A., 2016. The Guardian. [Online]
Available at: https://www.theguardian.com/culture/2016/may/24/interview-james-dyson-vacuum-cleaner
[Accessed 24 March 2018].

Dyson Ltd., 2018. Dyson Company. [Online]

Available at: https://www.dyson.com/inside-dyson/community/responsible-sourcing.html
[Accessed 25 March 2018].

Garun, N., 2013. Digital Trends. [Online]

Available at: https://www.digitaltrends.com/home/a-look-behind-the-scenes-at-how-dyson-beat-the-crap-out-of-vacuums/
[Accessed 27 March 2018].

Gibbs, S., 2015. The Guardian. [Online]

Available at: https://www.theguardian.com/technology/2015/mar/16/dyson-invests-15m-in-technology-that-may-double-smartphone-battery-life
[Accessed 25 March 2018].
Lancaster, C., 2017. Stylus. [Online]
Available at: https://www.stylus.com/kmnksn
[Accessed 25 March 2018].

Marle, G. v., 2014. The Load Star. [Online]

Available at: https://theloadstar.co.uk/dyson-building-supply-chain-control-tower/
[Accessed 25 March 2018].
 REFERENCES
Milmo, D., 2011. The Guardian. [Online]
Available at: https://www.theguardian.com/business/2011/dec/04/dyson-intellectual-property-rights-china
[Accessed 25 March 2018].
Peston, R., 2011. BBC. [Online]
Available at: http://www.bbc.com/news/business-14556246
[Accessed 25 March 2018].
Robert, 2017. Home Vacuum Zone. [Online]
Available at: https://homevacuumzone.com/hoover-vs-dyson-latest-models-compare/
[Accessed 25 March 2018].
Robert, 2018. Home Vacuum Zone. [Online]
Available at: https://homevacuumzone.com/shark-versus-dyson-vacuum-best/
[Accessed 25 March 2018].
Smith, O., 2017. Express. [Online]
Available at: https://www.express.co.uk/news/uk/803675/Dyson-European-Commission-Juncker-EU-regulations
[Accessed 25 March 2018].
Soon, A., 2018. Singapore Hardware Zone. [Online]
Available at: https://www.hardwarezone.com.sg/review-i-used-s999-dyson-v8-vacuum-cleaner-month-what-i-learned/so-good-so-expensive
[Accessed 25 March 2018].
Technavio, 2016. Technavio. [Online]
Available at: https://www.technavio.com/blog/innovations-household-appliances-market
[Accessed 25 March 2018].
The Economic Times, 2018. The Economic Times. [Online]
Available at: https://economictimes.indiatimes.com/industry/cons-products/durables/dyson-to-invest-rs-1300-crore-in-
india/articleshow/62929564.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[Accessed 25 March 2018].
The James Dyson Foundation, 2018. The James Dyson Foundation. [Online]
Available at: http://www.jamesdysonfoundation.com/about-us/
[Accessed 28 March 2018].
Tovey, A., 2017. The Telegraph. [Online]
Available at: https://www.telegraph.co.uk/business/2017/02/28/dyson-increase-uk-base-tenfold-buys-ex-raf-base-satisfy-expansion/
[Accessed 25 March 2018].
White, J., 2018. WIRED. [Online]
Available at: http://www.wired.co.uk/article/dyson-cyclone-v10
[Accessed 01 April 2018].