Dyson Ltd was founded by Sir James Dyson in United Kingdom in 1991. It is British technology company. It involves in manufacturing and designing household appliances like vacuum cleaners, hand dryers, air purifiers, heaters, bladeless fans, light and hairdryers. Dyson is employing more than 12000 people. The company is involve in continuous innovation and bring out new services in its technology (Dyson, 2020).
VRIO Analysis of Dyson
VRIO framework is an analytical tool used for assessing the resources and capabilities of the company. VRIO stands for Value, Rarity, Imitability and Organization. It is necessary for the company to achieve sustained competitive advantage so that company can exploit new opportunities and bring strength for the company. Here is the detailed VRIO analysis of Dyson ltd.
Value
This is the first component of the VRIO framework as valuable resources and capabilities brings value in the operations of the company. Valuable resources help the company in strengthening the position of the company by availing new opportunities and defending threats. Dyson has inventive engineers which is a valuable resource of the company. The company provides new innovative products with advanced features for the customers. The marketing and sales department of the Dyson are very efficient and creative. The company has valuable corporate support which helps the company in gaining customer loyalty. Dyson has huge customer base which helps the company in reaching to the target audience (Felix, 2020).
Rarity
This is the second component of the VRIO framework, which analyze the resources and capabilities to be rare. This means rare resources are acquired by few or anyone company. If the resources will not be rare, every company will use it for their own benefits. Valuable and rare resources of the company help in gaining competitive parity. The way Dyson has build its brand image in highly innovative and electronic market strongly. This is a rare resource for Dyson. The designing or engineer team of Dyson are rare. Finding innovative, creative, and dedicated workforce is a task and rare resource. The organization culture of the Dyson is also considered as rare and valuable (Wenku, 2012).
Imitability
This is the third component of the VRIO framework. This component focuses on the resources and capabilities of the company that needs to be hard to replicate or difficult to find alternative. The resource should be rare and difficult to imitate. The innovation and advanced technology used by Dyson is hard or costly to imitate for its competitors. Dyson’s manufacturing, engineering, and designing departments are considered as crucial in developing the most imitable competences which can be protected through copyrights and patents. Its research is also hard to imitate as it brings out the product according to the consumer demands and market changes (Julius, 2020).
Organization
This is the fourth and last component of the VRIO framework, which is an important one. The company should organized the resources or else it will not be able to achieve sustained competitive advantage. This helps the company to make its position odd one out in the industry. Dyson is one of the successful company which manages human resource and organizational culture and structure very nicely. The company works towards its goals and achieve their targets. The employees of the company are motivated and work according to the company’s strategy keenly (Felix, 2020).
Conclusion
Dyson is one of the famous company in home accessories and electronics. The company has successfully achieved sustained competitive advantage over a period of time and maintained its operations very nicely. The company is highly organized and well managed.
| Resources/Capabilities | V | R | I | O | |
| Corporate support | ✓ | ✓ | ✓ | ✓ | Sustained Competitive advantage |
| Research and Design | ✓ | ✓ | ✓ | Competitive advantage | |
| Patents | ✓ | ✓ | Temporary competitive advantage | ||
| Brand Equity | ✓ | ✓ | ✓ | Sustainable competitive advantage | |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Product quality | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Product range | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Talented HR | ✓ | ✓ | ✓ | ✓ | Competitive parity |
References
Dyson ltd, 2020. Our DNA. [Online], Available at: https://www.dyson.com/inside-dyson/community/our-dna.html, [Accessed on: 4th May, 2020].
Felix, 2020. VRIO analysis. [Online], Available at: https://www.coursehero.com/file/p1ic3g0/VRIO-Analysis-This-analysis-refers-to-Value-Rare-Inimitability-and-Organization/, [Accessed on: 4th May, 2020].
Julius, A. 2020. Corporate strategy- Dyson’s position and strategy. [Online], Available at: https://www.academia.edu/18943360/Corporate_strategy_-Dysons_position_and_strategy, [Accessed on: 4th May, 2020].
Wenku, 2012. Inside Dyson, A distinctive company. [Online], Available at: https://wenku.baidu.com/view/4d9090086c85ec3a87c2c5a3.html?re=view, [Accessed on: 4th May, 2020].