Analysis of how Dyson manages innovation. Coursework

INNOVATION AT DYSON LIMITED
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Innovation at Dyson Limited
Introduction
Dyson Ltd is a British technology company founded in 1991 by Sir James Dyson. The company designs and manufactures domestic appliances including vacuum cleaners, air purifiers, hair dryers, bladeless fans, and heaters. The firm boosts of over 12,000 employees operating in their subsidiaries around the world. It has performed consistently well as indicated in its revenues and net income. In 2018, its revenue was £4.4 billion with a net income of £1.1 billion (Holst 2020). The company has offices in the UK, Malaysia, and Singapore. Since its establishment, the company has always made its vacuum cleaners and washing machines in Amesbury Wiltshire. However, after 2002, the company transferred its production to Malaysia. The company has continued to explore other ways of reducing its operation costs to maximize its profitability. The company operated in Malaysia for 10 years and in 2013, it launched a $360 million plant in Tuas with an ability to produce up to 4 million digital motors annually (E&T editorial Staff, 2018). In January 2019, the company announced plans to move its headquarters to Singapore, being its fastest growing market. The company has been very strategic in making its decisions. All of the actions are carefully planned and calculated to ensure that it captures the market and remains to be the market leader in whatever country it venture.
Industry Analysis
The UK household appliance operators deal with the distribution of household equipment that include laundry appliances, cooking equipment and television sets among others. Because of the dependence of the sector on the downstream retail industry, the UK consumers and the general economic status are the major determinants of the trends within the industry. While the sector is relatively stable, the weak housing market in the last five years running through 2019-2020 saw the revenue reduce at a compound annual rate of 0.95 to £12.3 billion (IBISWorld, 2020). The housing market directly affects the market demand for the household appliances and hence the trend of the sector in the coming years will also play a key role in determining the trend in the sales of household appliances. On a global scale, the household appliance sector is expected to grow for the next five years. This growth is attributed to the stabilization of housing prices as a result of the projected stability in economy. Product innovation and advancement are likely to increase and lead to portfolio extension and product premiumization (Maida 2019).with the stabilization of housing prices and the economy, the only possible disruption is likely to occur from the high competition among the manufacturers of home appliances, which will be fueled by technological advances and the changing consumer preferences. Some of the expected changes as a result of innovation that is likely to disrupt the industry includes introduction of some improved features, better designs and performance.
According Technavio, the projected increased adoption of the more advanced products will have a positive impact on ...