Porter’s Five Forces Analysis of Dyson 

Dyson is a household appliance manufacturing Tech Company. James Dyson founded the company in 1991. Today, we’ll discuss Porter’s five forces analysis of Dyson; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Raw material and supplies for Dyson’s Products

• Polycarbonate
• Aluminum
• Rubber plastic
• Acrylic
• Plywood
• MDF

Substitute Products and brands and products of Dyson

• Kent Vacuum Cleaner
• Electrolux
• Whirlpool
• Bosch
• Samsung Electronics
• Kin Yat
• Venture Corporation
• Shark Vertex Pro Lightweight Cordless Stick Vacuum

Porter’s five forces analysis of Dyson would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Dyson Porter’s five forces analysis of household appliances Tech Company as follows;

Porter’s Five Forces Analysis of Dyson

Let’s discuss Porter’s five forces analysis of Dyson as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Dyson

The bargaining of suppliers is lower in household appliances Tech business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in Dyson Porter’s 5 forces analysis of household appliances Tech Company are as follows;

I- Availability of Raw Supplies

The raw materials and supplies (plastic, rubber, aluminum, etc) used in the production and manufacturing of Dyson household appliances are easily and conveniently available. Easy availability of raw supplies and materials at a low cost decreases the bargaining power of suppliers; it gives an upper hand to the company.

II-Suppliers’ Competition

Since there are multiple suppliers of raw materials, they compete with one another to establish a long-term contract with an established manufacturing company like Dyson. The competition among suppliers further reduces their bargaining power, and it allows the company to choose suppliers that offer quality material at the market competitive price.

Bargaining Power of Buyers in Dyson

The bargaining of Buyers is higher in the household appliances Tech Industry as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in Dyson Porter’s five forces analysis of the household appliances Tech Company are as follows;

I-Multiple Alternative

When it comes to shopping for household appliances like heaters, hair dryers, vacuum cleaners, bladeless fans, and other accessories; there are multiple alternatives available in the market of different brands. Samsung Electronics is at the top of the list, and other local and multinational brands have earned a significant market share. However, they all offer the same products with almost the same market competitive pricing. Multiple product and brand alternatives give significant bargaining power to the customers.

Threat of New Entrants in Dyson

The threat of new entrants is low in the household appliances Tech Industry and Dyson is a competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Dyson Porter’s five forces analysis of household appliances Tech Industry are as follows;

I-Tech Expertise & Investment

Launching a tech products manufacturing company; then it requires a significant amount of capital investment in production and manufacturing equipment and hiring tech professionals. The combination of heavy capital investment and tech innovative expertise happens rarely.

II-Marketing & Distribution

Along with tech innovation and heavy investment, Dyson invests a significant amount of resources in marketing and building the brand image. In fact, the appliances manufacturing brand has established a worldwide distribution network, and it helped the company to make its products available in various stores worldwide. The marketing and distribution network allowed the company to earn a significant portion of the customer market share.

Threat of Substitutes to Dyson

The threat of substitute products and brands is moderate to higher in the household appliances Tech Industry as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in Dyson Porter’s five forces analysis of household appliances Tech Industry are as follows;

I-Multiple Alternative

While purchasing household appliances, customers have multiple alternative options available to them. They could easily switch from one brand to another without incurring any cost.

II-Tech Innovation

In order to retain customers, Dyson invests a significant amount of capital resources in tech-innovation and research and development. It helps the company to develop better, improved, and efficient tech household appliances. However, it makes sure customers that they would better quality products from Dyson.

Competitive Rivalry in Dyson

The competitive rivalry among appliance manufacturing companies is very high in the household appliances Tech Industry as a competitive forces in strategic management. Some of the main factors impacting competitive rivalry in Dyson Porter’s five forces analysis of the household appliances Tech Industry are as follows;

I-Competitors

The household appliances manufacturing market has reached the market saturation stage. There are multiple manufacturers and they all have earned a significant portion of the customer market. However, it poses a significant challenge to the household tech appliances manufacturing brand Dyson to keep innovating and improving its products.

Conclusion: Dyson Porter’s Five Forces Analysis |5 Forces Analysis of Dyson

After an in-depth study of Porter’s five forces analysis of Dyson; we have realized that Dyson is the world’s leading household appliances manufacturing tech company. If you are learning about the Dyson 5 forces analysis of the household appliances Tech Industry; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.