Dyson : history, strategies and performances

Résumé du document

A new vacuum cleaner appeared due to Dyson, the inventor of the first bagless hoover. The successful British firm decided to outsource its manufacturing department to Malaysia in 2002, which caused many reactions. We will study the history of the company, its strategy and performances taking into account the context of outsourcing and finally, possible recommendations. James Dyson, already had managing experience in an engineering company when he decided to dedicate all his time to inventions in 1974. After the development of various products, he focused his work on the use of centrifugal force for vacuum cleaners, which led to the invention of the G-Force in 1979, the first bagless vacuum cleaner. His self-confidence, his hard-working philosophy and his tenacity brought him to go always further and develop many more efficient products.

Extraits

[...] James Dyson took advantage of the current opportunities offered by globalization. Nowadays, the easy circulation of products, means, information, money and people erases physical frontiers. So most of the companies choose to outsource a part of their activity in countries where labor and land costs are considerably lower. After its job outsourcing, by reducing the costs, Dyson made 102.9 million profits in 2004, which corresponds to a 137% increase, so it reveals that this decision was a financial success for the firm. [...]

[...] We will study the history of the company, its strategy and performances taking into account the context of outsourcing and finally possible recommendations. History: from the first inventions in 1974 to the famous bagless hoover James Dyson already had managing experience in an engineering company when he decided to dedicate all his time to inventions, in 1974. After the development of various products, he focused his work on the use of centrifugal force for vacuum cleaners, which led to the invention of the Force in 1979, the first bagless vacuum cleaners. [...]

[...] For its promotion in the USA, the firm invested $20 m in advertisements, and the famous vacuum cleaner also appeared in the popular TV show Friends. The target seems then to be quite large: 25 years old people and over, who have enough purchasing power. Let's also underline the importance of the father of the firm in its image; James Dyson, a patriotic figure, was nearly a British hero, since he was one of the last ones who resisted to relocation. As he was finally forced to, he became the centre of many polemics. [...]

[...] So the solution could be an association between companies, the Government and Universities in a way to develop diplomas that would create work and avoid unemployment. The companies would have a breeding ground for skilled employees. And the country would remain at the top thanks to a continuous improvement process by exploiting inventiveness and creativity, fighting by the way against a probable overtaking of fast developing countries such as China. Dyson always gave further in the development of new mechanisms and technologies, so he invests without hesitating in this department: in 2004 he spent £40m on Research and Development in Britain. [...]

[...] Of course, they still have to face many challenges. They have already attempted to diversify their ranges, for example with the two-drum washing machine, but it is not a success yet because of its high price. However, it was the same for the bagless vacuum cleaner, and thanks to it, Dyson has now overtaken the so strongly implanted company Hoover, which even gave its name to the hoover So there is probably no reason to worry for the future of Dyson. [...]