• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Dyson case study - Value chain, Resource Mapping and VRIO.

Extracts from this document...

Introduction

To: Dyson Date: 25.11.11 From: Sharif 1) 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. The following Diagram shows The Dyson's value chain. Diagram: Information resource effects on Dyson value chain (source: modified from Porter and Millar (1985) 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. ...read more.

Middle

This initial set of four attributes was improved and later presented by Barney in the "VRIO Framework", which includes, also as necessity to gain competitive advantage, the firm's organization in exploiting the competitive potential of its valuable, rare and imitable resources. VRIO Framework Analysis Value One of biggest resources is its brand name. Brand awareness is an asset that possesses intangible value to the firm. Dyson already had many experiences in designing, manufacturing, and selling distinctive vacuum cleaners. Dyson has used these experiences and skills to exploit opportunities for stepping into the vacuum industry. Rareness Dyson`s product design is deeply embedded in engineering and got the capabilities which can function in a radically different way, which makes their products rare compared to competitors. Their unique model, the hand blade hand dryer which can wipe out water in seconds using less energy rather than evaporating as in standard hand dryers. Their resources are rare as Dyson hold the Patents, preventing other companies from using such technologies. Imitability Dyson considers that the combination of design engineering and manufacturing is crucial in developing and the most inimitable competences that can be protected through patents. Dyson is already holding the patents and copyrights in their technologies and designs. ...read more.

Conclusion

4) 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. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Jollibee case study

    This is a strategy that the firm focus more on each specific domestic market, and trying to meet the needs of local customers. It is normally adopted by the companies who are selling brand-name, thereby ensure that local customers are still paying premium price so that to cover the all heavy cost.

  2. A Case Analysis: Starbucks Growth Destroyed Brand Value?

    Having such method in place, the managers of Starbucks then held a clear picture of the qualification of suppliers for making decisions on purchasing from them. * Creation of strategies which contributes to personal networking for dissemination of Starbucks' experiences and brand value.

  1. Zara Case Analysis

    They are able to reduce demand uncertainty by producing small quantities of clothes to test the market. Once a product has been deemed to be viable, Zara can quickly ramp up production of that item and rapidly distribute it to the stores.

  2. Strategic Management-Puma Case study

    Puma is relatively small when compared to the giants like Nike and Adidas. They have less cash in hand when compared to their competitors (From case study). So it is difficult for Puma to invest hugely to enter a new market where it is required.

  1. Strategic Management - CARREFOUR CASE ANALYSIS

    C 77) * The retailer entered a partnership with a local food and retailing conglomerate, the President Group, which held 40 percent of the shares. (p. C 78) * Carrefour introduced a new feature with the creation of cultural centers in two stores in partnership with Korea's leading newspaper.

  2. The business value of Information Systems. Case study: Amazon.com

    ERP systems add value to organisations by: * Integrating customer order information: ERP systems integrate order information, product shipment and invoices in one single system, enabling organisations to improve order tracking, and to coordinate inventory and shipment among different locations simultaneously.

  1. Entrepreneurship Case Study - Bill Gates.

    Thomas Edison said, "Genius is one percent inspiration and 99 percent perspiration." I believe that." 1. CONFIDENCE Bill Gates was always high confident person. He was always confident about getting high success. He stated the reason leaving the University: "There was nothing else I could learn more".

  2. Boeing 787 Dreamliner Case Study

    The MH-47 provides key capabilities to special operations forces. U.S. Air Force KC-46A Tanker Program: The U.S. Air Force selected the Boeing NewGen Tanker to start replacing aging KC-135 aerial refueling tankers. The Air Force designated the new aircraft the KC-46A.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work