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BUSN11075 Business Creativity University of the West of Scotland

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University of the West of Scotland

BUSN11075 Business Creativity University of the West of Scotland

Whenever people talk about companies who came with brilliant ideas and creations in this
century, Dyson has to be among them. Dyson is one among the most innovative company in the
world who did what seems impossible to other companies, being innovative made Dyson very
popular and successfully in the vacuum cleaner industry. However it is important to discuss
about the type of innovation that made Dyson successful, was it Incremental or radical?
This report will critically appraise the literature review of innovation, it will also discuss case
brief of Dyson and Situation analysis covering Dyson’s organizational, industry and global
context. Furthermore, this report will assess whether Dyson success and achievement has been
based on incremental or radically innovation approach. Last but not least it will recommend the
most suitable and effective innovation type that a small engineering company in Tanzania can
use to be successfully, this recommendation will base on the lessons that has been learned from
Dyson case.
The case study presented is all about the achievements of James Dyson, how his innovation and
creativity led him to be a multi billionaire personal. Dyson knew that to get the Lion’s Share of
the market he has to come up with something innovative & creative and in doing so he brought
many radical and incremental innovations. His first innovation was the solution of the problem
that figured out with his vacuum that loses suction after the pores in dirt bags get filled with dust
particles and to overcome this he came up with cyclone technology which later he patented so
that others can’t copy it. Dyson brought many incremental innovations to its existing products
with the passage of time but mostly he is well renowned for Vacuum Cleaners because that was
his first and foremost innovation that completely brought revolution to the market. The research
and development at Dyson has always been creative, from the beginning their core focus is upon
uniqueness and creativity and in doing so over the years they have come up with many
innovative products like Robot Vacuums, Handheld Vacuums, Dyson Supersonic hairdryer,
Dyson Airblade, Dyson Air Multiplier and many other models of vacuum cleaners. Dyson’s
products have always come with high prices because of its quality and uniqueness and the
products are worth the price.
Global context
PEST model is applied to describe global context of Dyson organization. Since Dyson’s product
portfolio is diversified, including, vacuum cleaner, washing machine, fans and robot devices, this
model should deal with general technological home appliances. PEST is comprised of Political,
Economic, Social and Technological factors (Abdullah and Shamsher, 2011).
 Political factor: As measured by World Bank, average political stability index in 2015 in
the world is -0.04 in the range from -2.5 to 2.5 (The Global Economy, 2016). Hence,
political situation in the world remains controversial. Despite this, enforcement of
intellectual property rights is strong in the world to assist Dyson to protect its unique
technology (Gurry, 2012).
 Economic factor: Economic growth in the world reached 2.659% in 2015 and kept stable
after the financial crisis with the reduction from 4.372% in 2010 to 2.445% in 2012
(Appendix 1). Additionally, world population is distributed via 56% of low income, 13%
of middle income, 9% of upper-middle income and 7% of high income (Appendix 2).
Hence, premium products of Dyson only serve these 29% of world population (from
middle-income level above).
 Social factor: Gender difference could not determine the classification of roles on
housework and women are more equal to men in business activities, hence, the use of
convenient technology for home appliances is highly demanded (Auspurg et al., 2017).
Additionally, people are more concerned with differentiation than low cost.
 Technological factor: this time is technological age. Regarding home appliances, smart
technology such as automation and energy efficiency are emphasized (Morrison, 2015;
Atha et al., 2016).
Industry context
Porter’s five forces model is utilized to describe industry context around Dyson. It includes
threat of new entrant and substitutes, bargaining power of buyers and suppliers along with rivalry
with existing companies (Sumpio, 2013)


BUSN11075 Business Creativity University of the West of Scotland

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