FINDINGS

The analysis of findings which problem that found in the Dyson industry gives the
company full review about its impact in the market and its viability in the future. According to
a market research report, the household vacuum cleaners market is expected to reach 14.60
billion USD by 2018. This growth is explained (1) by an increasing awareness about the
advantages of using vacuums, especially in the Asia market. The vacuum grease market in the
Asia-Pacific region is the fastest-growing market across the globe (2) . As a result, the global
market for household Vacuum Cleaners is forecast to reach 115.7 million units by 2020 (3) .

Regarding the political environment, Sir James Dyson decided to decentralize the
production line from its base in Malmesbury, to Malaysia for fiscal purposes in 2003.
Consequently, Dysons production costs has decreased by 30%, and the firm has seen its profits
doubling the year after. However, the transfer resulted in the loss of 800 jobs in the United
Kingdom (4). Because of that, Dyson management decide to find several problem that can help
them to analyses their component to being competitive to other electrical appliances company.

There are several problem found in the Dyson industry in order to keep the reputation
of the company in competitive state.

1. EXISTING RIVALRY
As we analysed in marketing part there are many companies in the vacuum cleaner
market, such as Philips, Hoover and so on. Philips is one of the most success companies in the
electricity area. They have a great brand image and they are enjoying big market share in
vacuum cleaner market share in the worldwide. And Philips cannot be ignored all the times,
because they have the ability to defeat Dyson company which is new in the Malaysia industry
in anytime when they are not doing very well.

Compared to Philipss focusing on all the areas in electricity, Hoover put their most
energy in vacuum area. They are one of the oldest companies in the cleaner area. Hoover is
founded in 1908 and Hoover has been Dysons main competitor all the way. Except these two
big companies there are also lots of companies who threat Dyson during its way to success.
2. BARGAINING POWER OF SUPPLIER
Because they are doing lot of experiments to test their product, they need of different
kinds of material. And some of them are really difficult to find. Then the supplier has the
advantage to decide the price for the material. And Dyson need to get more options for their
suppliers. Therefore it will have problem due to over budget on research and development for
certain product. From article that publish on November 21, 2014 author by Tanya Powley state
that the founder of Dyson which Sir James Dyson want to invest 1 billion on research and
development over the next four years as it looks to expand in new product areas which are
vacuum cleaner and bladeless fan.

3. THREAT OF SUBSTITUTES
The technique used in Dyson product is very unique but most other products are in
different design. If the vacuum cleaner with bags have overcome the shortage and still be in
the lower price, they will become a substitute for the Dyson vacuum cleaner with dual cyclones.
Another new design of cleaner is coming around the corner which doesnt need the user to
move it from one to another. They have a great performance in automatic. They will clean the
room by themselves. If this kind of design takes place of the Dysons design Dyson will face a
great threat during the market.

Figure 1: Dyson vacuum with dual cyclones

4. BARGAINING POWER OF BUYER

The prices of Dyson are always one of highest compared other products as we can in
our market such as Lazada. And because the price they have to face some actual facts that they
will lost most of the consumers. However they are in high price strategy to make sure that their
products are the best and it is kind of guaranteeing to their users. Customers buy the products
in high price and at the same time they get a high quality service from the company which is
after sales service.
DISCUSSION

Dysons products are a combination of design and engineering, protected through patents,
making them inimitable. For example, the use of root cyclone and ball technology makes their
vacuums: energy efficient, easy to use, and finally technologically superior over competitors.

For a global view of providing vacum cleaners with efficient usage but innovation and
improvements at its heart . The biggest long term strategy which can help up keep the
phenomena of the continous improvement and room for invenetion is via answering to the fact
that How do you motivate people to continue coming up with the new ideas and parameters
to make them believe in youir goals and values of your company and provided the company
this much big the use of investing the money in right segments is also important aspect which
not only directs the companys way of working but also defines the planning of next working
phase of the company. In recent , company has undergone in doing heavy investments for
building the flow of the engineers into the company by doing a long term plan for the bussiness
which includes the investment which is part of a four-year 1 billion global plan to grow the
business, that includes 50m funding for UK universities and 200m to expand the Dysons
manufacturing bases in Asia (Tovey, November 2014).

The major problem is people in our modern world is a bit late to accept the technology from
the Dyson such vacuum cleaner hand held (cord free) which doesnt use any wire and has
efficient power to clean up the mess. But the technology is require high investment and it will
cause the price of vacuum cleaner become so high in first production. So to settle the problem,
Sir James Dyson has Investing in research and development has fairly managed to increase the
range of innovative machines produced by Dyson, and also their profits. To illustrate, the
launch 32 of the DC58 model hand held vacuum cleaner has result of patentable technologies
such as the cyclone technology captures dirt and microscopic dust in the bin. It makes this
product one of the most powerful handheld vacuums in the market (5). In that year, the increase
in popularity of its handheld vacuums-sales were up 64% in 2014- allowed Dysons profit
increase by 13% per cent from the previous year, hitting 367 Million in 2014 (6).
 In term of advantages in this company, the alternative solution for every problem in
order to keep the company reputation in competitive among the others. The company always
find the new market for their business and make the knowledge sharing between their branches
in all over the country including Malaysia to overcome the problem occurred. Dyson ensures
that the information is shared between all the departments of the company. This ensures the up
to date info and consistency at all level. It also can have sharing session between engineers and
designer to develop and build a technology that can contribute to mankind and company profits.
However, due to high price for their product, they invest on their customer feedback to give a
good after sales service to their users and extended the warranty up to 2 years that can increase
the confident level of their buyers. Information of customer demand and feedback is considered
effectively to provide better customer satisfaction. Then, management of Dyson also has a daily
news bulletin relating to the latest new development and status of company for all employees.

For the Dyson company there have several disadvantage that effect the management of
Dyson to maintain the reputation. Considered that Dyson at the Malmesbury and the already
build their new branch at Malaysia and China, they will lack of face to face discussion about a
new product development. Their engineers have to travel from Malmesbury to Malaysia or
China to finalize the product. It also put their product on the premium prices which is not very
competitive as all the product in the market because people will choose the cheaper one but the
dyson has its own strategies to overcome this problem.
REFERENCES
1 Research, Transparency. 'Global Household Vacuum Cleaners Market Is Expected To Exceed
USD 14 Billion By 2018: Transparency Market Research'. Prnewswire.com. N.p., 2015. Web.
1 Dec. 2015.
2 Prnewswire.com,. 'Vacuum Grease Market Worth 229.7 Million USD By 2020'. N.p., 2015.
Web. 1 Dec.
2015.
3 Marketbytes.blogspot.co.uk,. 'Market Bytes: Global Market For Household Vacuum Cleaners
Is Forecast To Reach US$11.4 Billion And 115.7 Million Units By 2020'. N.p., 2015. Web. 1
Dec. 2015.
4 Gow, David. 'Dyson Profits From Malaysian Move'. the Guardian. N.p., 2003. Web. 1 Dec.
2015.
5 Cordless Vacuum Guide,. 'Dyson DC58 Review'. N.p., 2014. Web. 2 Dec. 2015.
6 Thinking, Fresh. 'Dyson Profits Hit Record High | Fresh Business Thinking'. Fresh Business
Thinking. N.p.,2015. Web. 2 Dec. 2015.