Case ID 18-1194
Published 2018
Industry Code 311
Subject Competitive strategy

Abstract In September 2017, Dyson Ltd. surprised many observers and analysts at large when they announced their intentions to enter the competitive electric car market. Dyson, widely known for their consumer electronic goods products, especially their vacuum cleaners announced their ambitious plans to begin manufacturing electric cars by 2020. Having already secretly worked on this project for the past two years prior to the announcement, while spending approximately $2.6 billion, Dyson’s decision had left many observers curious of the potential future impact to Dyson and the business wisdom behind the move. Touted to be a very lucrative industry in the coming decades, the electric car market already compromises of many experienced traditional car manufacturers, as well as many new comers with deep financial pockets, making this segment highly competitive. The visionary and eccentric inventor, Sir James Dyson founded this company in 1991. Over the years, the company had thrived and defied the odds with its growth based on its belief in the ingenuity of innovative engineering. This case will provide the readers with the background of Dyson Ltd. as a company and also provide more history on its founder James Dyson, to provide context on how the company has operated over the years. The case will also provide information regarding the company’s health around the 2015 time period, when this decision to move into the electric car market was made. The case will provide the readers a general idea of the current market for electric cars, its future potentials and finally the challenges that lay ahead. From the information given, the readers should be able to evaluate and provide an informed analysis or opinion on Dyson’s decision to move into the electric car market.
Pages 22
Teaching Note Yes