Case 3 : A Dyson case study

Introduction

The Dyson Dual CycloneTM is the first breakthrough in vacuum cleaner technology since 1901. In 1979, James Dyson noticed that his bag vacuum cleaner only picked up dirt properly with a new bag and that it lost suction rapidly as the bag filled. The vacuum cleaner bag needs to collect the dust, but allow air to pass through via tiny pores, in order to maintain airflow and therefore suction. In fact, the dust quickly clogs these pores and blocks the airflow. Because the air is blocked, the cleaner’s suction is reduced very quickly.

       So James Dyson set out to design a vacuum cleaner that worked better. five years and 5,127 prototypes later, the world’s first vacuum cleaner with no bag and no loss of suction arrived. Any product which is clearly different from those of its competitors is said to be differentiated. James Dyson spent two years trawling the UK and Europe looking for someone to license the product. He finally sold his machine under licence in Japan where it became a status symbol, selling for £1200 apiece.

A licence is a commercial contract, which allows an overseas manufacturer to produce a product and use a patent or brand name. Using the income from this licence, James focused on his plan to manufacture a new model in Britain. He started in his workshop at his house in Bath, together with a small team of young design engineers. In 1993, 15 years after he had the initial idea, he opened his own research centre and factory in Wiltshire, producing the DC01 – the first in the Dyson Dual CycloneTM range of vacuum cleaners. Throughout this entire process, James Dyson and Dyson Appliances concentrated on planning for the long term rather than giving in to the apparent attractions of short-termism.

Patents

A patent gives the patent owner the right to stop someone else making or selling the patented product. If the patent covers a part of a machine like a vacuum cleaner, then the patent gives the owner the right to stop other people making or selling any vacuum cleaner including that part. The monopoly can last for up to 20 years from the date of filing the patent application. Without a patent to protect a product, anyone who wants to can take the same idea and use it in their own products. This can be very unfair, especially if the first person to think of the idea had to spend a lot of time, effort and money developing the product to make it work and to put it into production.Getting a patent can take a long time and be very expensive. Patents are only effective in the country in which they are granted so you have to protect your idea in each country in which you want to have the right to stop other people using your idea. However, once you have a patent, you have a weapon with which you can build a commercial lead against your competitors. Dyson tries to protect any inventions made during the development of its machines. No less than fourteen new inventions were identified and covered by patent applications before the DC03 was launched in January 1998. These inventions were all made during the course of the development of the DC03 which is, of course, also protected by the patents covering the original idea of the cyclonic separation system. The original patents date back to 1981. The overall appearance of the DC03 was also protected by a Registered Design.

The patent applications filed in respect of the fourteen inventions made during development of the DC03 will probably mature into at least 100 patents over a period of a few years. Each patent will need to be maintained and the costs will be high. However, it means that competitors will be unable to take Dyson’s ideas and put them into their machines. In this way Dyson maintains its competitive advantage in the market-place.

Launching DC03

The DC03 Dyson Dual CycloneTM vacuum cleaner was launched in January 1998. It uses the Dual CycloneTM technology which ensures that the cleaner does not lose suction as it is used, plus it is light, slim line, has two HEPA filters, and a brushbar that can be switched on or off enabling the consumer to vacuum different surfaces.

Within just two months of launching the DC03, it had captured over 13% of the total vacuum cleaner market in the UK. The years of hard work had paid off: DC03 answered the needs of a specific type of consumer perfectly. DC03 had been more than two years in the making. When DC03 reached the shops, the benefits of investment of time and money became very plain.

Conclusion

Dyson’s investment for the long-term continues even after the product has been sold to a customer. There is support readily available for Dyson customers if they need advice or help with their vacuum cleaner. Dyson makes every effort to ensure that customer care creates the minimum of fuss and expense for the consumer – it is a key part of Dyson philosophy to invest time in treating its customers well.Most appliance companies allow electrical stores or service agents to repair machines or provide spare parts, but this is not always convenient for the customer. Dyson ensures that customers receive the best advice and help all the time. They can phone a helpline and speak to an operator who can advise them on how to maintain their cleaner, sell them any accessories, or arrange to have the cleaner repaired. Dyson employs telephone operators and service engineers to ensure this operation runs smoothly. The lines are open seven days a week from 8am to 8pm, and fax and email can also be used. A courier collects the cleaner from the customer’s home, and delivers it back, serviced and repaired within three days.

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