• 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...


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.


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.


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. Strategic Management - CARREFOUR CASE ANALYSIS

    (p. C 76) o One important factor in cost management is its sourcing strategy. (p. C 76) o Shared processes and systems increase operational efficiency and the introduction of international product ranges complements its locally sensitive strategy. (p. C 76) o Carrefour also works actively with local governments and nonprofit organizations to protect the environment.

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

    A personal network is "a set of human contacts known to an individual." (en.wikipedia.com) Between individuals, the interactions are made and a set of activities are supported. In other words, it is to make the relationship between individuals mutually beneficial through personal networking which is "the practice of developing and maintaining a personal network."

  1. Jollibee case study

    An even worse case is that in some of the new countries, the franchise could not afford an expensive advertising before they achieved certain level of sales. All these negative are defined as First Mover Disadvantage (Robert M. 2003).

  2. Zara Case Analysis

    Zara's supply chain is very strong and effective for one that goes against most supply chain theories. However, it still incorporates the critical supply chain elements Risk management is a big part of Zara's supply chain and business strategy. Having a large capital investment increases their risk, as does producing and shipping the goods themselves.

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

    sharing on product demand between the organisation and its suppliers, which improves inventory management efficiency through the use of VMI (vendor-managed inventory). The benefits include reduced cost of paper processing and lower inventory holdings. * Reducing costs: SCM systems enables organisation to outsource certain assets, to lower costs through price competition and to offer better service quality.


    and be far more durable than traditional vacuum pumps. Because it is constructed from aluminium, the Kunst 1600 will weigh 5 to 10 pounds less than competing products. Technicians will appreciate the weight savings. Potential customers will be willing to pay a price premium to obtain a vacuum pump with the Kunst brand name on it.

  1. BMW Case Study: Methods of Strategic Development, Competitive Analysis and critical success factors

    Branding now becomes the major driver for differentiaition. BMW's actual rivals, both competing on the same basis of product excellence and cost of ownership - usually very high - was Mercedes Benz, Lexus, Cadillac and Lincoln. For instance BMW model Z4 - a sport car - was competing with Audi TT and Mercedes CLK.

  2. 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".

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