Dyson Case Study Analysis Psychology



You know the feeling when some everyday product lets you down. You wish someone couldsolve the problem. James Dyson does that. He is a man who likes to make things work better.With his research team he has developed products that have achieved sales of over $10 billionworldwide.In 1978, while vacuuming his home, James Dyson realized his bag vacuum cleaner wasconstantly losing suction power. He noticed how dust quickly clogged the pores of the bag and blocked the airflow, so that suction dropped rapidly. He set to work to solve this problem. Fiveyears and 5,127 prototypes later, the world's first cyclonic bagless vacuum cleaner arrived.James Dyson offered his invention to major manufacturers. One by one they turned him down,apparently not interested in new technology. They seemed determined to continue selling bags,worth $500 million every year. Later, Hoover's vice president for Europe, Mike Rutter, said onU.K. national TV, "I do regret that Hoover as a company did not take the product technology off Dyson; it would have lain on the shelf and not been used."

Thinking about the issue of core competency and strategic capability, whatis the secret of James Dyson’s competitive advantages?Early inventions

TheSea Truck , Dyson's first product, was launched in 1970 whilst he was at the Royal College of Art. Sales of the Sea Truck amount to $500 million. His next product, theBallbarrow, was amodified version of awheelbarrowusing a ball to replace the wheel. Dyson remained with the

Page 1: Introduction

The Dyson Dual CycloneTM is the first breakthrough in vacuum cleaner technology since 1901. In 1979, James Dyson noticed that his bag vacuum cleaner only picked up dirt properly with a new bag and that it lost suction rapidly as the bag filled. The vacuum cleaner bag needs to collect the dust, but allow air to pass through via tiny pores, in order to maintain airflow and therefore suction. In...
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Page 2: Investments

Dyson firmly believes that a company’s profits should be invested back into research and development, rather than continuing to sell an ordinary product only on the strength of the way it is advertised or marketed. For example, spending money on a new advertising campaign may be quite a good way to encourage a lot of people to buy something very quickly, but if they discover that the product...
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Page 3: Developing a new Dyson

After the success of the DC01 upright and DC02 cylinder cleaner, Dyson wanted to maintain its market leading position with more, innovative products. The Ansoff matrix below shows that a company should keep changing both in its target market and in its products. Existing products can be introduced to new markets, overseas for example, or a new product can be developed which will appeal to a new...
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Page 4: Engineering development

Using the information from consumers, as well as their own experiences and ideas, Dyson in-house design engineers aimed to ensure every detail of the DC03 made vacuuming better for the consumer. All three models in the range are based on Dual CycloneTM technology, but the DC03 upright builds upon DC01 upright and DC02 cylinder models and further improves the design of a vacuum cleaner. The...
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Page 5: Patents

A patent gives the patent owner the right to stop someone else making or selling the patented product. If the patent covers a part of a machine like a vacuum cleaner, then the patent gives the owner the right to stop other people making or selling any vacuum cleaner including that part. The monopoly can last for up to 20 years from the date of filing the patent application. Without a patent to...
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Page 6: Conclusion

Dyson’s investment for the long-term continues even after the product has been sold to a customer. There is support readily available for Dyson customers if they need advice or help with their vacuum cleaner. Dyson makes every effort to ensure that customer care creates the minimum of fuss and expense for the consumer – it is a key part of Dyson philosophy to invest time in treating...
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