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Midterm

COMM 210 Study Guide - Roomba, Hair Dryer, Space Heater

4 Pages
83 Views
Fall 2016

Department
Commerce
Course Code
COMM 210
Professor
Guy Barbeau
Study Guide
Midterm

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Midterm 210
Dyson
1) Chandler:
Dyson follows Bombardier (based on an invention, international, related
diversification).
Economies of scale
Economies of scope: The technology Dyson develops means they’ll inevitably
spread into other products. They can use the same resources to create a variety of
products.
First mover: Dyson became a company known for its quality, high-end vacuums
that competitors rushed to emulate.
Related diversification: expansion into other product markets hand dryers, fans,
hair dryers, etc.
- Pure Cool combines a fan, a space heater and an air purifier
- Supersonic is a high tech hair dryer that marks the company’s entry into the health
and beauty markets
- Intent to become a first mover in the battery development industry
Innovation: while Dyson is not a first mover in the health and beauty markets, the
innovation behind the Supersonic can make them such. Dyson is also investing $3
billion in research for the 40 new products it has under development.
- 360 Eye, a robot vacuum that spent 17 years in development
2) Greiner: Growth is not inevitable. The company does not focus on growth and is
happy with its size
3) Barney:
Valuable: The value of resources can change due to technology, but because Dyson
innovates all of its technology, it is always at a competitive advantage. This new
technology is what allows Dyson to exploit growth and expansion opportunities.
The technology it creates can be applied to other products, and used to create other
products.
Rare: Dyson became a company known for its quality, high-end vacuums that
competitors rushed to emulate. Because Dyson is a first mover in high quality and
high tech household products, its challengers do not possess the same resources and
capabilities to produce such products.
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Description
Midterm 210 Dyson 1) Chandler: Dyson follows Bombardier (based on an invention, international, related diversification). Economies of scale Economies of scope: The technology Dyson develops “means they’ll inevitably spread into other products”. They can use the same resources to create a variety of products. First mover: Dyson became a company known for its “quality, high-end vacuums that competitors rushed to emulate”. Related diversification: expansion into other product markets – hand dryers, fans, hair dryers, etc. - Pure Cool combines a fan, a space heater and an air purifier - Supersonic is a high tech hair dryer that marks the company’s entry into the health and beauty markets - Intent to become a first mover in the battery development industry Innovation: while Dyson is not a first mover in the health and beauty markets, the innovation behind the Supersonic can make them such. Dyson is also investing $3 billion in research for the 40 new products it has under development. - 360 Eye, a robot vacuum that spent 17 years in development 2) Greiner: Growth is not inevitable. The company does not focus on growth and is happy with its size 3) Barney: Valuable: The value of resources can change due to technology, but because Dyson innovates all of its technology, it is always at a competitive advantage. This new technology is what allows Dyson to exploit growth and expansion opportunities. The technology it creates can be applied to other products, and used to create other products. Rare: Dyson became a company known for its “quality, high-end vacuums that competitors rushed to emulate”. Because Dyson is a first mover in high quality and high tech household products, its challengers do not possess the same resources and capabilities to produce such products. Imitability: Because of the rareness of Dyson’s technology, “competitors rushed to emulate” it. While it might not be impossible to imitate Dyson’s resources, it is costly (new technology) and time consuming (Dyson spends years perfecting its products through development). This makes Dyson’s resources more inimitable than not. Organized: ??? Based on the VRIO analysis, Dyson has a sustained competitive advantage in its industries because its resources are valuable, rare, costly to imitate, and (assumed to be) organized. Dyson’s Supersonic hair dryer is the perfect example of Barney’s claim. It is a valuable product because it allows Dyson to exploit new markets; it is rare because its advantages are never before seen (110,000 revs versus the average 15,000 revs, no noise, heat control to prefer hair burning); it is inimitable because the technology used for the dryer is Dyson’s own creation; it is organized because ___. 4) Collins & Porras: a) Core ideology Core values: Dyson says he vales technology and innovation over growth. “We’re not out to make beautiful products, we’re out to make products that work really well”. “We’re really more interested in developing new technology and seeing what interesting products we can make with [it].” - High quality of products: Dyson’s is reputable for the quality of its products. “Dyson rationalizes the high price tag…by citing their advantages…heat, damage, noise – a
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