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Dyson Limited is a domestic appliance manufacturing company headquartered in the UK. Their product range includes vacuum cleaners, washing machines and hand driers. The value chain describes the categories of activities within and around the organisation, which together create a product or service. Value chain divides the company’s activities. Therefore, it is a chain of value adding activities, where value ‘is measured by the amount that buyers are willing to pay for a product or service’ (Porter and Millar, 1985).
Dyson can cut down the cost dramatically by the effective management of information system. Information technology is a powerful and efficient tool to reduce the documenting cost and can help in easy accessibility of information in various sections of the organization.
If we look at the case study of Dyson we could say that the value chain of the primary activities of Dyson is that it has got an outbound logistics as it distributes its products around 45 different countries which is concerned with the cyclone technology.
The inbound logistics is where Dyson takes in the raw materials from his suppliers, so that they can rapidly meet their requirements where they are having problems to make the vacuum cleaner as Dyson wants. The outbound logistics which is the distribution of its products is outsourced. Dyson distributes his products for the vacuum channel which has got company-operated markets across the country. The marketing and sales was the one where Dyson`s own image and personal brand remained central to the firms promotion.
Resource Mapping is where the managers often highlight the critical success factors such as better service or reliable deliver. It is also about strategic capability that undertakes to meet such critical factors or they identify capabilities at too generic level. The analysis of Dyson’s internal capabilities suggests that it is valuable, rare, costly to imitate, and organized to exploit opportunities. According to the result of this assessment, Dyson is sustainable as long as it preserves and develops these competitive advantages in the industry, which requires being continuously innovative.
Distinctive capabilities are unique and integrative bundle of firm’s tangible and intangible resources that allow firm to perform distinctive tasks or activities. According to John Kay, there are three Distinctive Capabilities (Architecture, Reputation and Innovation) which a company can possess to create added value and achieve competitive advantage through relationships. In the case study, the distinctive capability of Dyson is the design which is deeply embedded in engineering. Another distinctive capability is the innovation as Dyson product means new, different, a radical change.
These distinctive capabilities of Dyson will not remain distinctive for a long time, as in the case study it could be seen that Dyson`s competitors are trying to make similar products by using the special computerised technology which helps the engineer to develop prototypes and emerging innovative ideas like good robust engineering plan. If we look at the value chain of Dyson we could see that Sir James Dyson is very crucial to the future of the company, because he is the head of the organisation where he controls all the primary and the supportive activities like technology development, procurement, inbound and outbound logistics, and market research that are part of an organisation`s culture.
After analysing the VRIO it also could be seen that Sir James Dyson is very crucial to the company. The analysis of Dyson`s internal capabilities suggest that he has got a brand value, his developed products are rare in the market, it is also costly for the competitors to imitate and organised to exploit opportunities. So, according to the result of assessment it can be said that he is very crucial to the future of the company.
The effect of Dyson leaving or selling the company will have a negative impact on the company because the competitors are following the strategy of Dyson. If this continues then they may lose distinctive competences and they may lose the whole business, because he is the only founder and developer of innovative ideas and engineering model. So, overall it can conclude that leaving Dyson or selling the company may lead the company in an unstable position.
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