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Dyson Company Market Entry Strategy

Company Details

Dyson is a multi-national technology company that is headquartered in Britain. Some of the company’s most known products are dryers, vacuum cleaners and heaters. Recently, the company announced that they had plans to develop an electric car brand, and due to this ambition, they had opted to also move their headquarters to Singapore. This did not happen as the plans to manufacture electric cars was abandoned. Critically, the company has been public about the struggles they have faced while working both in their country office and in other host countries. It is important to note that one of the reasons why the company is moving to Singapore is the complications that arose within the UK/EU after Brexit. It is important to note that whereas host countries can be challenging for international brands, sometimes, these companies also face challenges in their home countries.

As mentioned previously, the company is a multi-national, meaning it has branches in different parts of the world. This has resulted in the employment of approximately 12,000 people. The firm boasts of a current revenue of US$7.3 billion. Additionally, the company’s net profit is recorded at US$1.5 billion for the year 2019 (Osterwalder ET AL., 2020). Some of the company’s largest country offices are in Singapore, Malaysia and Chicago in the US. However, the company has a total of 65 country offices all over the world, albeit some being smaller than others. It is arguable that the company has products, however, in almost all countries around the globe. This essay will look at different marketing elements that affect the company as it plans to open a new store in New York in the US. It can be assumed that some of the lessons learnt when the company opened the Chicago branch will be applied in New York. However, it is critical to note that due to the cultural, social and even political differences between the two states, the management has to categorize entry into New York as a new market.

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Key Strategies

As mentioned earlier, the company has to consider various market entry strategies in order to be successful. One strategy the company has relied on, and that succeeded in India is word of mouth. Indeed, today, word of mouth still remains the most relevant marketing strategy. However, due to technology and the advancement of the internet, word of mouth is more effective and affordable when done online, through social media. This strategy was key in the success of the company in India, and Asia at large. Ezeanaka (2020) explains that when choosing market entry strategies, companies have to also consider the culture and trends of the market in that specific region. On the other hand, one can argue that the same word of mouth might not have worked in Europe due to the differences in culture. Another successful strategy that the company relied on was direct exporting, which was initially used in Chicago and even Singapore.

Critically, it is equally important to state that different products by the same brand might also require different types of market entry strategies. For example, whereas the introduction of hairdryers and even vacuum cleaners in Singapore was successful due to the use of direct exporting, the same was used to introduce the electric car into the same market. This, however, did not work and can actually be attributed to the failure of the entire project. It is arguable that the company failed due to the fact that Singapore, and Asia in general, are known to be very tech-savvy. The company should have used indirect exports and communicate on the new technology that their electric car would introduce into the market. They should not have assumed that the same strategy would have worked due to the difference in brands.


Due to the wide range of products that are associated with Dyson, the company has numerous competitors at both a local and international level. One of the key competitors is Venture Corporation, which is headquartered in Singapore. There are two main things that make this a worthy competitor. The first is that it has a bigger presence in Singapore and Asia, which are also an important market for Dyson. Secondly, the company deals in almost similar brands that Dyson does. However, when one compares the two, it is arguable that Dyson is still a larger company due to its larger global reach. A second competitor is Bosch, which is another international brand that deals with electronic and technological innovations. It can be argued that Bosch is a bigger brand compared to Dyson with a revenue of approximately 77.7b British pounds.

It can be argued that MaxVac is one of the local competitors. Ojha (2020) argues that the company is well known within the UK/EU region for its industrial cleaning equipment such as vacuum cleaners and even dryers. One can argue that for these two specific products, Dyson has to compete with a company such as Dyson, despite the fact that the latter company is bigger and more profitable and the other. Further, Disab UK is also a popular household name in the region. The firm also specializes in vacuums and other similar products. It is important to note that the two local companies do not have a large international presence, if any. However, they still hold significant percentage of the home market due to the fact that there is a feeling of ownership among the target market.

PESTEL Analysis


It is arguable that there are numerous political decisions in the US, particularly in New York, that can affect whether entry into this market will be successful or not. Recently, there were two movements that were politically charged that affected numerous companies in the state. The two movements were Black Lives Matter and also Cancel Culture, both of which, were also highly boosted through social media and other digital platforms (Bouvier, 2020). Various companies were put on trial to prove that they supported race equality and other labor laws. Further, one can argue that other policies and government regulations affecting the FDI also have to be considered. Arguably, New York has a conducive business environment due to stable federal and state governance. Further, there are systems and structures that are in place that support foreign investments, that would help stabilize the new company.


It can be argued that the economy of the US, and New York state, are stable and good for business. Greenlaw, Shapiro and Taylor (2017) note that the GDP of New York is 7.7% of the national GDP. This has been steadily growing over the years. Shaw (2020) also notes that in the year 2019, the state added over 100,000 jobs for its citizens. This goes to show that the economy is not only stable, but also growing. These elements are critical for the expansion of Dyson into the area for two reasons. The first is that the stable economy allows for business growth. This, coupled with positive political goodwill are needed to ensure the success of the company. Secondly, the growing economy also means that the majority of the target market will be able to afford the products that Dyson will be offering.


Debatably, consumers are more aware of the type of products and even the kind of consumer journey that they deserve. Therefore, there are two things that the company has to consider in regards to the socio-cultural status of the target market in New York. The first is the popular social culture, where consumers already know what they want and can access information on which brands offer the best in terms of quality and consumer service. Towards this end, Dyson has been on the forefront of using innovation to satisfy their customer needs, and this will work for the benefit of the company. The second is the “traditional” social aspect of clients living in New York. Arguably, this is the capital city of the world, thus, offers great variations in regards to brands. It is important to note that literacy levels in the city are high, meaning more people will appreciate the need for the products that are offered by Dyson.


As mentioned previously, Dyson is keen on technological advancements. This makes it easier for the company to put up a store in New York, which is also known for its preference for technological products. It should be clearly noted that the technology needed by consumers is one that not only affects their day-to-day lives but also makes it easier. Indeed, there are innovations that make products aesthetically better, however, if for instance this is achieved but the size of the product is affected (a small product becomes bigger in size) then the innovation might have a negative impact on the bottom line. It is critical for Dyson to keep up with the latest technological trends for all their products. This will ensure that they stay ahead of the competition at all times. On the same note, it should be noted that research and development is also important in order to know what the target market prefers.


Currently, there are various policies that affect how companies interact with the environment. Dyson has to ensure that they have the right permits and also observe environment conservation practices. One way of doing this is reducing the company’s carbon footprint. This can be done at all stages of the product cycle. The second way of achieving the same is using environmental friendly raw materials and processes to ensure that the same do not have a negative impact on the environment. There are also other things that the company can do in relations to conserving the environment. For instance, the firm can offer corporate social responsibility services to companies and organizations that are working towards conservation.


It is important for Dyson to follow all the rules and regulations of the US. This will be relatively easier due to the fact that the company already has a store in the US. However, extra caution has to be observed due to the fact that this will be a new state, and some of their legal policies especially in regards to special permits and licenses might be different. It is also critical for the company to conform to the employment laws in the US. Critically, labor laws differ from one country to the other. Being a multi-national company, Dyson should have interacted with the different labor laws in the different countries that they operate in to ensure political goodwill is upheld.

Culture Analysis

Culture Analysis of New York

Arguably, New York is culturally diverse. The city is made up of people from various backgrounds and even countries, thanks to globalization. One can argue that the diverse culture is held together by some elements. For example, eclectic can be used to describe the culture of the state. This is critical for Dyson as it can be incorporated into the market entry strategy. For instance, the company can focus on how their brands suit the different diverse cultures in the state as their marketing tactic. This will allow the clients to feel like their individual cultures are well represented and thought of in the company

Masculinity/Femininity Comparison

New York, and the US in general, score a high masculinity/femininity score (Kristjánsdóttir et al., 2017) This is due to the fact that there is high competition in the state. Critically, Dyson has to ensure that they capture a significant percentage of the market due to the high competition. One of the things that the company can consider to set itself apart from the rest is different and highly effect consumer relations. The masculinity score also means that the culture appreciates successful brands, therefore, this should be used as part of the marketing strategy.

Power Distance Dimension

The power distance for the US is average, whereas it is higher than that of the UK, it is significantly lower compared to the UAE (Beugelsdijk & Welzel, 2018). This means that there is a significant percentage of the population that agrees that there are power inequalities and they are comfortable leaving in this way. As mentioned earlier, movements such as Black Lives Matter and Cancel Culture might suggest a slight yet significant shift in this dimension. This affects the company due to the fact that their target audience are the ones that score highly on this dimension.

Individualism Dimension

New York scores highly on the individualism dimension score. This means that the common culture is for people to look after themselves as opposed to considering the general wellbeing of the society as a whole. This also means that the people value privacy at all costs. One reason why this is important for Dyson is the fact that their products have to offer solutions to people who believe in their right to be alone. Such products have to be easy to use, installed and even maintained all in an attempt to preserve the individualist nature of the target market.

Approach to Time and Priorities

The fact that the state is multi-ethnic, also ensures that there are different opinions on time and priorities. For instance, older generations living in the state are more punctual than the younger, for instance, Spanish population. It is critical to note that generally, New Yorkers are always on time and also prioritize their work and even home life. This can be attributed to the fast-paced nature of the state. Therefore, Dyson has to ensure that consumer relations and even problem solving is done at a relatively fast rate.

Uncertainty Avoidance

Compared to the UK, where the headquarters are located, one can argue that New York has a significantly higher uncertainty avoidance. According to Beugelsdijk, Kostova and Roth (2017), this means that they are more concerned about the future and unknown situations. This may lead to the creation of myths or beliefs on how individuals should live in order to secure the future. Arguably, Dyson should use this information to further interact with their target audience.

Industrial Analysis

Porter’s Five Forces

Threat of New Entrants

It is arguable that the threat of new entrants is low. This is due to the fact that there are various challenges that new entrants have to face. First, the business of household technology is an expensive one. New entrants have to get intensive capital in order to get into any market. This will not be a problem for Dyson, however, due to the fact that the company is already an international brand, and can afford the entry. However, it also means that the company does not need to worry about a surge of new entrants into the same market. Further, the skills and innovation knowledge required of staff is so high that very few staff have it. This also contributes significantly to this threat being low.

Industry Rivalry

Despite the fact that there is little threat of new entrants into the market, the industry rivalry is significantly high. As mentioned, the company already has both local and international competitors, many of whom are also present in the New York market. Apart from the fact that there are numerous companies already in the space, the fact that they all make the same products makes the rivalry that much higher. In New York, the company will have to compete with the local yet also international brands such as iRobot, whose headquarters is in the US. The company’s marketing strategy should consider this carefully in order to attract a significant percentage of the market.

Power of Buyers

Arguably, the targeted buyers have a high bargaining power due to the different options that they can get. As explained previously, there are numerous similar brands that already in the New York market. Therefore, the target audience has already become familiar with these brands. Further, the internet has made it easier for consumers to get brands delivered to their doorstep from whichever part of the world the manufacturer is from. This gives the consumers a good bargaining power and limits the negotiation power of the company. This can be resolved in two ways. The first is through engaging deeply with the consumers to know what products they like. The second is through value addition to ensure the clients cannot get the same service anywhere else.

Power of Suppliers

Debatably, the bargaining power of the suppliers is low. This can be attributed to the fact that the companies that are in the business are massive and need bulk items in order to make their products. The fact that Dyson is an international company also puts it at an advantage when it comes to suppliers. This is due to the fact that their business would boost any supplier who wants to work with them. Secondly, they have the option of retaining the suppliers for business in other countries based on their quality and even price. This ensures that Dyson can negotiate with its suppliers.

Threat of Substitutes

Due to the constant changes in the technological field, one can argue that the threat of substitute is relatively high. This is also applicable to the entrants in the market currently. Due to this, it is encouraged that the company always observe the different technological changes that keep happening, and incorporate the same into their products. It should be noted that Dyson is keen on radical innovations, therefore, by default, already treats this threat seriously.

SWOT Analysis


One of the company’s strengths is its ability to develop creative solutions. This is critical in this day and age due to the fast technological advancements of the field. Further, these innovations make the products that more efficient, thus, directly improving the quality of products offered. Secondly, one can argue that the firm’s research and development department is a strength. This is due to the fact that the company has used numerous resources to ensure that they know what their clients want, need and prefer, and have incorporated their research in their products. Again, this directly feeds into the company’s value addition and ensures that it is a trusted brand among many homes. Further, one can state that the human resource the company boasts of is a strength. The staff are not just qualified, but numerous have been directly trained in matters engineering by the company itself, through its James Dyson Foundation.


One key weakness of the brand is that, compared to its competitors, it has high prices. This locks out customers who are interested in the company’s products but cannot afford the same. A second weakness is poor communication skills among management. This has led to various lawsuits and even negative public perception. Villanueva et al. (2020) explain that the communication skills of the top management is horrible to the extent that the owner of the company, claimed that Chinese nationalists in Britain were spies for their companies. It is critical that the company come up with both strategic and crisis communication strategies to help in such situations. Further, the company has had various lawsuits filed by their competitors. It is advisable that such quarrels should be resolved out of court in order to avoid tarnishing the name of the company.


There is still an opportunity for expansion for Dyson. This is considering the fact that the company is not present in all countries of the globe. In fact, it can be argued that it is due to this opportunity that the company is seeking entry into the New York market. The firm has also not fully explored African nations and put up factories in the region. Secondly, there is an opportunity in expanding their reach through online platforms. Indeed, in this day and age, companies can ship their products to different parts of the worldwide from the click of a button. The firm should consider this as it thinks about further expansions. It would be ideal if the company uses local partners to further this opportunity. Due to the company’s innovative nature, it is important for the firm to continue with enhancing the effectiveness of their products.


One can argue that the presence of fierce competitors is a significant threat to Dyson. This is especially true in the New York market due to two reasons. The fact that these options are cheaper compared to Dyson, and secondly, due to the fact that the market appreciates local brands more than other markets. Another threat is pricing as there are numerous competitors in the target market that offer cheaper and similar products. Dyson has to come up with a better pricing plan for the market. Further, they can include other value additional elements that would still attract clients to their products despite them being slightly more expensive. There is also a threat due to delayed launches that have affected the company in the past. Due to the cultural analysis already done, it is prudent for the company to limit or rather, avoid such delays in this specific market.

Corporate Social Responsibility

Dyson does have a corporate social responsibility that is mainly tied to the James Dyson Foundation. Latapí, Jóhannsdóttir and Davídsdóttir (2019) explain that CSRs are mainly meant to improve the lives and conditions of the society in which a company is found. It is arguable that the company is hosted by numerous communities. In a bid to make a more sustainable CSR strategy, the corporate firm uses the Foundation to help educate young men and women interested in engineering and technology advancements. These individuals then go ahead and practice in the company to further their skills after graduation. There are two main issues that have to be unpacked from this premise. The first is that the CSR involves educating young people so that they can gain invaluable skills. The second is that it also increases employment by offering skilled youth to the market.

Entry Strategy

After the presentation, there is one viable entry strategy that can be recommended. It is recommended that the company seeks joint ventures to expand into New York. One of the reasons why this is a valid strategy is the fact that it feeds into the diverse and multi-ethnic culture that is represented in New York. Citizens will be able to identify with the brand as it will be both foreign yet local. The management is encouraged to get a partner or even partners who can add value to their brand. This strategy will also work for the benefit of the company as it will help with the pricing strategy that has already been discussed. It is important to note that the company has to either lower the prices of their products or offer more value addition in order to capture a respectable percentage of the New York state market.

Arguably, the company has only used this strategy once before. Jaroenapibal (2016) explains that the management decided to use joint venture with the Sakti3 start-up. The decision for this was due to the start-ups innovations in technology. The management believed that if they did not get into a partnership with the start-up, then they would be losing out and also give their competitors an advantage. It can be argued that the joint venture has been successful. This is due to the fact that the start-up already makes batteries that make Dyson’s products that more efficient. Different competitors have used joint ventures to expand their businesses. Indeed, some have been successful while others have failed. It is important to note that Dyson will not be the first in the New York market to use this strategy, neither will it be first to enter the said market.

Challenges of Doing Business in the Host Country

One of the challenges of doing business in the host country is that it has expensive real estate. The capital needed for the entry into the market will, therefore, be exaggerated due to real estate. It should be noted that the company will need prime and large real estate in order to ensure that they can reach their clients easily while also making their products at the same location. Combining the factory and offices will allow the company to reduce costs. It is suggested that the management consider buying their stores in order to avoid the ever increasing fees that are associated with the renters’ market.

A second challenge of doing business in the US, and in New York by extension, is poor logistics. There are two main things that one has to consider when discussing logistics in New York. The first is that a significant population of New York residents use the subway or walk due to massive traffic concerns. Secondly, companies that are located in the middle of the city have a hard time getting to their store due to the mentioned traffic jams. the recommendation to buy spaces is also complimented by the need for the company to purchase property that is on the outskirts of the city. This not only lowers the price of the property, but also ensures that the logistics issue is resolved. The company can then get several stores within the city to stock their products through various partnerships and the suggested joint ventures. Other limitations that the company has to consider include saturation, competition and consumer trends.

Strategy Success

It is expected that the strategy will yield success due to one main reason. The first is that it will lower the cost of opening up the business in New York. The joint venture will bring in two partners who can use each other to get ahead in the market. A reduction of costs in relation to capital or operating costs will also allow the company to be more creative with the prices of their products. It is critical to note that the issue of price can either make the company successful or otherwise. This is due to the fact that there are numerous competitors who offer more affordable options that the target market might prefer. Success of the strategy can be monitored through direct sales and even public image. The latter can be managed through a successful corporate social responsibility strategy.

Support Issues Related to the New Venture

There are a few support issues that are related to the new venture. The first concerns how the venture will be governed. There are two options – locally governed and internationally governed. It is suggested that local governance be considered due to the partnership angle of the venture. To ensure that all partners are aware of what is going on, local governance and management should be considered. Further, this will ensure that there is fast decision-making especially in the first few months or years of the new venture.


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1 Start-up Company and Customer Attitudes