100%(1)1 out of 1 people found this document helpful
This preview shows page 20 - 22 out of 38 pages.
cost analysis, added a new element to form a more comprehensive framework.STRATEGIC CROSSROADS.Dyson cleans upJames Dyson, the British inventor and entrepreneur, has become known mainly for his distinctive bagless vacuum cleaners, whose brightly coloured plastic shapes stand out among the more staid models of competitors. For Dyson Appliances, the company he founded in Malmesbury in England in , success in the British market led to expan-sion in Europe, where Dyson claims a fifth of the market by value. Perhaps his most stunning achievement has been to capture of the American market in , after only two years’ endeavours. Here, Dyson fronts his own advertisements for the product, but attributes his success more to the technol-ogy than marketing. He feels that the dual cyclone technology sells the machines, even though prices are more than double that of competitors’ machines. e Dyson machine has also been a success in Japan, where consumers are noted for being especially hard to please. e model designed for the Japanese market is small and light, ideal for small apartments, and is equipped with a powerful digital motor. He is planning to enter the Chinese market, which is perhaps ironic, as China is the preferred location for most of the world’s manufacturers of household appliances.As an entrepreneur, Dyson has never lacked confidence, but he faced serious obstacles in getting his inventions offthe ground, coming close to bankruptcy several times. From an engineering background, he worked for five years, from to , to perfect his new vacuum cleaner, going through over ,prototypes. He tried to sell it to large manufacturers, but was turned down by Philips, Electrolux and Black & Decker. He formed his own company, of which he is the sole shareholder, and has protected his inventions with patents. Still, he has had to fight numerous legal battles with Hoover, which has a similar machine. During hard times, he had sold technology rights to his machines in the US and Japan, and had to buy them back before he could launch in these markets.In , Dyson took the step many engineering companies before him have taken, shifting production to Asia, where he set up a factory in Malaysia. Two years later, all production was shifted to the new factory, resulting in the loss of 9781403_945631_03_cha02.indd 569781403_945631_03_cha02.indd 5619/9/08 15:12:0319/9/08 15:12:03
Perspectives on globalizationchapter 2 57PAUSET OREFLECTTheories of internationalizationIn light of companies you know and those featured so far in this book, which of the theories presented here best explains the internationalization process?Changing patterns of FDIAmong the key features of globalization identified above are growing economic integration; interconnectedness between organizations; and the growing importance of IT, advanced communications and transport.