Strategic Capabilities Of Dyson Using Analytical Frameworks

Porter’s Five Forces described by Michael Porter in his classic 1979 Harvard Business Review article gave tremendous insight that began a revolution in marketing strategy (President & Fellows of Harvard College, n.d.). The Porter five forces continue to help companies like Dyson compete in competitive industries and aid them in being successful (President & Fellows of Harvard College, n.d.). Well-established rivals in the vacuum industry including Maytag, Hoover, Oreck, Kirby, and Bissell do exist and present a constant threat to the company. However, following an examination of the bargaining power that Dyson have in the market Dyson’s decision to manufacture its products in the Far East allows operating and building costs to be minimized. These choices

In reaction to global pressures Dyson planned to launch itself into international business. This report is written to advise the board of the company on the benefits of using Information Resources and Enterprise system to compete effectively and efficiently thereby having a competitive advantage in the Industry. It will place emphasis on how competitive advantage could be achieved using information resources and technology on the Value chain.

Capabilities: Schmitz (2012) refers to capabilities as “what the organization can do” to effectively utilize its resources. Some examples of Raytheon’s capabilities are Raytheon’s Six Sigma progress, integrated supply chain management, and a variety of technological capabilities. Raytheon’s Six Sigma is “a disciplined, knowledge-based approach designed to increase

The target market for the new Dyson vacuum cleaner will be directed toward Brand Lovers,” technologically stimulated communities, medium to high-income households, women, and people who are concerned about improving the quality of air, dust, and allergen removal. However, Dyson must strive to attract new markets with its technological brand, focus on efficiency, powerful performance, modern design, and productivity to individuals outside of these groups, and to small carpet cleaning businesses within the commercial industry.

Dynacorp adapted functional structure since it was established. The company has three divisions which are engineering, manufacturing and marketing. The precondition of the company’s development is that each division work closely with one another. Whereas one of serious problems is sharing common goals. Manufacturing was complained to be the cause of high costs and delays. They would request for iterations on designs, which holds back engineering to repeat the work that they have done while they have already

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

Competitive strategy, after Porter, came to be defined as the strategy of a business unit which seeks to achieve sustainable Competitive Advantage (SCA). The literature on strategy deems the market-based view (MBV) and the resource –based view (RBV) as two approaches to giving businesses the competitive edge they need to compete in their industries. Aside from having competitive advantage as their ultimate goal, the two approaches are also similar in the sense that they both make use of particular tools and models in their undertakings. They also differ in numerous ways,

In order to identify BMW Group’s internal strengths and weakness, here applied strategic capability which combined three keys of resource: tangible resources, intangible resources, and competences. All of these resources enable a company to attain a sustainable competitive advantage (Dess et al, 2010).

This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA,

The marketplace has been dynamic and competition between companies in the same industry has been increasingly intense (Ranchhod, 2004). Having dynamic capabilities contributes to a company’s “long-term survival or competitive advantage” (Johnson et al., 2008: 84). This is especially essential

Dyson first target countries with high income customers (represented by yellow) like US, Europe and Japan. Currently, Dyson is trying to go into other market segments like Asia and Middle East (represented by orange) which has a growing class of affluent consumers. The company has major branches in US, UK, Canada, Malaysia and Singapore. Dyson’s main competitors are consumer appliance brands like Philips Electronics, General Electric and Panasonic. Unlike most of its competitors, Dyson is relatively small and focuses on only 4 products. For its new product, the bladeless fan, not only is Dyson competing with established brands such as KDK and Mistral, but also portable air conditioning companies such as Daikin and Sanyo.

Founded in Rüsselsheim in 1862, Opel is one of the most technologically advanced vehicle brand in Europe which has a long and rich history. However, after 11 months of effort proved unprofitable, Opel declared to exit Australian market with lower than 10% of the sales target reached(Spinks 2013). This essay aims to give a objective evaluation of Opel’s business activities. To achieve the target, this essay will use the relevant elements in PESTLE framework to critical analyze the external environment, followed by critical evaluation of the business response using evaluation criteria provided.

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

Capabilities mean how the company mixes and utilizes all assets to bring the best product offered. These capabilities summarize in company 4Ps, which are listed as below:

A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.