Global Strategy and Sustainability Sample
Introduction
This report aims to explore Dyson’s growth opportunities and sustainability of the growth for the market of Europe, Africa, the Middle East, and Asia. The report is made to provide input to the CEO of Dyson to upgrade the strategies in the market of Europe, Africa, the Middle East, and Asia. For this purpose, the external and internal environment of the organization has been analyzed using PESTLE, VRIO, and Porter Five Forces. The strategy for the global market has been developed using the Bartlett and Ghoshal matrix, Ansoff matrix, and market entry strategy.
Task 1– The External and Internal Environment
PESTLE Analysis
Political
Political instability is a significant factor that can disrupt the operations of a company (Eghbali and Sayehmiri, 2021). In regards to the regions of Africa, and Middle East Asia, it is quite considering for Dyson. The process of upgrading strategies needs to consider the political scenario of the countries.
Economic
Due to economic issues like inflation, the currency rate fluctuates across the economies (Belanová, 2023). It is highly considerable in the market of Africa and Middle East Asia. The cost of importing is affected by the context and impacts the competitiveness of the company.
Social
The consumer of modern times prefers to have sustainable, healthy, and technology driven living (Rao and Min, 2018). It is quite considerable for Dyson to adopt for developing products and remain competitive in the market.
Technological
Dyson is involved in investing heavily in research and development activities which can help Dyson explore new opportunities in the market (Lu, et al., 2022). However, the landscape of technology is quite evolving and it can be challenging for Dyson to stay competitive in the market.
Legal
Intellectual property is a significant legal aspect for Dyson as it can protect its innovations through the use of trademarks or patents. It can help the organization protect itself from copying competitors as well as maintain a competitive advantage.
Environmental
The environmental regulations are becoming stringent and it is important for the organization to comply with the regulations of operating countries and avoid penalties or fines.
VRIO Analysis
Valuable
The innovative design, quality, and reliability of Dyson are the factors that create value for the business (Kim, et al., 2021). The organization consistently focuses on incorporating new features and technologies that help in superior performance and user experience.
Rare
The key aspects of the production process are maintained by Dyson. It involves research and development, and manufacturing processes that help to maintain quality and innovation. This control over production helps the organization to maintain rarity in business.
Imitate
The technology used in the company and manufacturing process are the factors that are quite challenging to imitate other organizations (
).
Organized
The control over production, agile and flexible culture, and strong leadership of the company are key reasons behind the organized process in the company.
Porter Five Forces
Bargaining power of suppliers
The bargaining power of suppliers is low as Dyson majorly controls the production process in the company.
Bargaining power of buyers
The bargaining power of buyers is moderate as Dyson customers have options to buy from other companies with low switching costs. However, Dyson is a reliable company that attracts customers.
Threats of substitute
The threat of substitutes is quite strong as the development of technology is encouraging new and substitute products to enter the market.
Threats of new entrants
The threat of new entrants is quite low. This is because operating a business in a sector with huge investment and capturing a reputation like Dyson is quite difficult.
Competitive rivalry
The competitive rivalry in the sector is quite high with the presence of companies like Shark Ninja, iRobot, and Electrolux.
Critical evaluation of the competitive advantage
Dyson has a competitive advantage in the sector due to the brand reputation it has gained over time. In order to maintain its competitive advantage, Dyson focuses on maintaining quality and innovation in its products through research and development activities.
Task 2 – Strategy in the Global Environment
Critical evaluation of motives for Dyson’s expansion
Figure 1: Bartlett and Ghoshal Matrix Source: (Bartlett and Ghoshal, 2017)
In order to evaluate the motives of Dyson’s expansion. The Bartlett and Ghoshal Matrix has been considered here. Based on the model, it can be said that the motive of Dyson falls in the category of multi domestic. This is because the organization has high pressure for local responsiveness where the organization needs to focus on the needs of Middle East Asian and African markets. These markets involve different needs which creates an opportunity for Dyson to develop new products and capture the market (Bartlett and Ghoshal, 2017). Due to the high pressure of low responsiveness, the pressure of global integration is low as the focus on the local market relieves Dyson to focus on global integration.
Identification of strategic options
In regards to entering the market of Europe, Africa, and Middle East Asia, Dyson needs to focus on certain areas. The Ansoff matrix has been considered here to explore the strategic options. Based on the Ansoff matrix, it can be said that market development and diversification are the key strategies that need to be focused on. With the consideration of market development, the organization can enter new markets with existing products. Diversification can be considered as entering a new market with new products that suit the demand of new markets.
Market Entry Strategies
In order to enter the markets of Europe, Africa, and Middle East Asia, Dyson can consider direct sales and indirect sales market entry strategies. The organization can consider direct sales to sale products through its website (Watson IV, et al, 2018). Indirect sales can be considered for providing dealerships and sale the products through dealers.
Conclusion
It is concluded that Dyson is a reputed company in the home appliance sector. The organization has been operating the business with a reputation for a long time. The factors like growth of urbanization and the advancement of technology create opportunities for the company. For entering the market of Europe, Africa, and Middle East Asia, Dyson can consider adopting market development and diversification strategies.
References
Bartlett, C.A. and Ghoshal, S., 2017. Managing across borders: New organizational responses. In International Business (pp. 307-317). Routledge.
Belanová, K., 2023. How Increased Inflation Affects Businesses. SAR Journal-Science and Research, 6(1), pp.3-8.
Eghbali, A. and Sayehmiri, A., 2021. Investigating the Theoretical Relationship Between Political Instability and Political Business Cycle in an Oil Country. International Political Economy Studies, 4(1), pp.375-392.
Kim, J., Jeong, B., Kim, D., Kim, J., Jeong, B. and Kim, D., 2021. Is Innovation Design-or Technology-Driven? Dyson. Patent Analytics: Transforming IP Strategy into Intelligence, pp.117-126.
Lu, Q., Guo, Q. and Zeng, W., 2022. Optimization scheduling of home appliances in smart home: A model based on a niche technology with sharing mechanism. International Journal of Electrical Power & Energy Systems, 141, p.108126.
Rao, N.D. and Min, J., 2018. Decent living standards: material prerequisites for human wellbeing. Social indicators research, 138, pp.225-244.
Watson IV, G.F., Weaven, S., Perkins, H., Sardana, D. and Palmatier, R.W., 2018. International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing, 26(1), pp.30-60.
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