Maximize your understanding of the household appliances industry with PESTEL analysis of Dyson, designed to reveal the key drivers of success and failure
Dyson is a company based in the United Kingdom and deals with manufacturing of household appliances including vacuum cleaners, hairdryers, heaters, fans, etc. Today, Dyson’s machinery is available in almost 65 countries and they are operating successfully. Considering a PESTEL Analysis, we will realize the impact of external factors on the operations of Dyson for any international market.
Political Factors
Political factors in UK and other countries can affect the business of Dyson. When it comes to UK, being its local market, the political laws have been very easy for Dyson or any company to imply to and the laws usually do not affect Dyson’s business in UK. But, in the recent times the government is expected to go through some unstable conditions, that can most expectedly affect the business of Dyson, affecting their sales as well as supply chain and the cost incurred in the production. While in other countries, factors like higher exchange rate, unstable government, trade rules and import restrictions by the government can affect the international business in any country resulting in decline in their business.
Economic Factors
Economic factors like interest rate, exchange rate and growth rate can affect the business of Dyson in different markets. For instance, if the growth rate in a certain country is high, that market is expected to give good business to Dyson as its sales are expected to increase. While on the other hand, if the inflation rate is high in a certain economy, it can reduce the buying power of the consumers and thus reduce the sales for Dyson. As Dyson is a comparatively high-end product, the buying power of consumers can either increase or decrease their business in a certain market.
Socio-cultural Factors
In the current era the customers are very much aware of what they need so it is very important for companies to fulfill the demands of the consumers in terms of product quality as well as customer services. Dyson has been very consistent in providing innovative technologies to cater to the needs of their customers. In the international markets, if the consumers of any market are unaware of the technology adopted by Dyson, then it will reduce their sales and that kind of market is not good for their business. So a country where people’s lifestyle matches with what Dyson provides, the sales for Dyson as expected to increase.
Technological Factors:
Dyson is all about innovative technology and providing solutions for customers that are very innovative and it is very important for their sales and growth that Dyson keeps on adapting to latest technological trends and to be ahead of their competitors. So if Dyson invests more in their research and development and continuously keeps on developing and growing in terms of technology, it will gain them good brand reputation and give them more sales eventually.
Environmental Factors
With people being more aware of their environment, Dyson is able to provide products involved in cleaning. But by providing more information regarding their products, and investing in projects involving ecological investments, they will be able to increase their sales as people are more aware than ever and they expect the companies to also play their roles in saving the environment.
Legal Factors
Since Dyson works internationally, it has to comply with rules and regulations of these countries in order to sell their products legally in all these markets. These laws include trademark registration requirements, employment laws, safety laws, and other patent requirements. Following these laws will not only help them conduct their business in a certain country but also them build their brand image in a certain country and increase their sales and business.
References
Retrieved October 5, 2017, from http://www.dyson.com/community/aboutdyson.aspx
Little, A. (2014, November 21). Why we must quit the EU, by tycoon Sir James Dyson. Retrieved October 5, 2017, from http://www.express.co.uk/news/politics/538488/Why-we-must-quit-EU-tycoon-Sir-James-Dyson
Jha, A. (2009, June 25). James Dyson calls on UK government to back environmental engineering projects. Retrieved October 5, 2017, from https://www.theguardian.com/technology/2009/jun/25/dyson-engineering