Business Report - How to enter the Asian market with the Dyson Airblade™

Résumé du document

Dyson Ltd. is already exporting its products successfully to 49 countries with an increased turnover of 23% within the last year (The Telegraph, 2010). As a marketing consultancy we would like to present to you possibilities to stretch out to new interesting markets to keep on with this story of success. According to The Telegraph twice as much profits is attributed to Dyson's international expansion in the last years. ‘The company, which recently developed the Airblade hand dryer, has pointed out that its high results in 2009 were due to international expansion and multi-million-pound investment in research and development' (The Telegraph, 2010).

Analyzing the business environment by considering the external macro-economic factors as well as evaluating Dyson's internal company potential, we can show you a way to enter the interesting market of South Korea for the Dyson Airblade™. As Dyson is already selling the Hand dryer successfully in Japan it also plans to expand in China and India. (The Telegraph, 2010) This shows that an expansion to Asian countries is reasonable and the right investment.

Due to its market leadership in UK, USA, Canada, Australia, France, Belgium, Spain, Switzerland, Ireland and New Zealand (GfK, 2010) and recent successful business figures, Dyson can rely on a strong financial basis. Through investing a remarkable amount of profits into the company to ensure a high range of innovation and expansion of the company , the management board has decided to grow internationally. Also the recent raise in debts by £350m to finance the expansion plans underlines the management's strong wish to act globally. We would like to identify the best opportunities to reach this objective. On the basis of the onion model we will analyze the wider dynamic marketing environment Dyson is dealing with. We will pay special attention to those factors, which affect Dyson immensely. Developing a strategy to deal with those influences we will show opportunities and risks when entering a new market.

It is a challenge for Dyson to enter a new market, as it has some really large competitors such as whirlpool or Electrolux. In order to succeed, Dyson has to play on its core capacities and competences to create a diversification. These innovations seemed to work in Japan, which is the only Asian country where you can find their products for the moment. Dyson's product bases itself on style and innovations as well as a different market target than its competitors. One of its main strategies is to create stylish expensive goods. The main question to ask before any implantation is; will there be any of the target market in South Korea? To answer those questions, a market research has been made for this assignment.

Extraits

[...] Compare to New Zealand who is the first, United States is the 19th, and France is the 24th Environmental factors The Environmental factor is becoming more and more important. It includes the weather and climate change, which can impact on companies. What Dyson have to care about is more for the protection of the environment. The aim is to reduce the impact of human activities. Products don't have to pollute the water or the air. They have to be recyclable. [...]

[...] Higher interest rates may deter investment because it costs more to borrow, a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency, inflation may provoke higher wage demands from employees and raise costs, and higher national income growth may boost demand for a firm's products. Nowadays, Asia is in the centre, economically and politically speaking. The growth rate in Asia and especially in China increased a lot: since 1980, and maintain it at per year. Many currencies exist in Asia as you can see in the following graph. The Chinese Yuan maintains to be the more used in international trade. However, some other currencies will show out during the next years. [...]

[...] It uses 80% less energy than a normal air hand dryer. So it's very efficient. It also has a very high level of hygiene, with a HEPA filter that eliminates 99% of bacteria from the air that is used. The Dyson hand dryer is the only one to be certified in hygiene by the independent public health specialist NSF international. In comparison to other products that take more then half a minute drying hands and where bacteria are not removed Dyson has created the best solution. [...]

[...] One hand drier costs around 1,200 so that mean they will gain 900,000 $ Partners In Asian market Dyson can cooperate with some health organisations, like they worked with the NSF (National Sanitation Foundation) in United States. As a result of this partnership they were the first who got the certified hand dryer under Protocol P335, which including hygienic and health standards. This certificate gave more quality to the product in customers' eyes. Airblade is more ecological than paper towels or normal warm hand dryer and therefore ECO organisations can also be potential partners of the company. Furthermore for Dyson it will be appropriate to start partnership with hospitals, hotels chains, restaurants, airports, truck stations etc. [...]

[...] The export restrictions are the limitations on some products. This permits to the government to assure the country security, the public interest and the economy protection. As most of the Asian countries are increasing a lot with international trade, countries don't have export restrictions that can stop the Dyson exportation. Moreover Asian countries do not have any problem with the United Kingdom, so no reason to put barriers Market Entry Mode for South Korea To enter a market 3 essential questions have to be answered in advance: If you want to act internationally? [...]