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Corporate Strategy Essay

270 words - 2 pages

In VRIO analysis a firm evaluates whether a resource is Valuable; Rare; Costly to Imitate; and whether a firm organized to capture the value of the resources. The report analyses the intangible resource “intellectual property” of Dyson.
Valuable: The intellectual property is extremely valuable to Dyson’s business success. The Dyson products such as the use of industrial cyclone tower that use centrifugal ...view middle of the document...

In addition, engineers and designers of Dyson are believed to be part of their core competence where they get highly trained and are encouraged to innovate.
Rare: Intellectual property of Dyson is protected by patents and hence they are rare. Skilled human resources are also trained to the requirement of Dyson. The company uses patenting as a way to protect its business. Dyson is said to file one new patent every day and has about 1,300 patents (Innovation Magazine, 2014). It also maintains extreme secrecy in its design and research centres.
Costly: Dyson over the years have invested on R & D and recently have announced to invest £1bn in R & D over the next four years which is in addition to annual spending 80 million in 2013 (Financial Times, 25). Therefore, it would be costly for any competitor to attain the level of innovation.
Organised: Dyson is well organised to harness such resource. It keeps its R & D in the UK and provides an environment for its engineers and designers to innovate.

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