Question

Looking at few main factors of the advantages and disadvantages of dyson company

The internationalisation- selling of products and services world wide

So moving from UK to Singapore- which allows access to the Chinese market

Then then economies of sales- the benefits/ drawback of being a large multinational corporation.

Answer 1

Benefits for Dyson Company on growing its operations internationally:

• In 2004, the company entered into a joint venture with Singapore based meiban group in Malaysia. As a result of this it had cost savings from transferring the production to Malaysia that made them to enable the R&D in their malmesbury office.
• In 2007, it formed a partnership with Malaysian electronic manufacturer that took a major role in dyson’s supply chain. This helped the company to supply finished products around the globe (America, UK, japan etc.)
• The company also announced a significant expansion program in UK. It also made James dyson to start a college in UK to combat the shortage of engineering skills in UK.
• In 2019 it also has the plans to move its markets to Singapore to be considered as one of the fastest growing markets.
• As a part of all this movement, dyson was also able to create job opportunities in all these countries.
• Through acquisition & merger, the company was able to develop the poor business of the companies whom it has acquired or merged with.

Drawbacks:

• When dyson started his first vacuum cleaner, a red & a blue machine, it bought him little success because he found it difficult to find a licensee in UK & America.
• When they started their operations in Malaysia, there were problems from trade unions in Wiltshire who claimed that there can be negative impact on the local economy because of loss of jobs.
• There were quality concerns as a result of which the contract was renegotiated to build the vacuum cleaner. This happened with a Japanese company.