FINAL REFLECTIVE

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I’m a graphic designer, and also now is a student in managing a creative business. I thought the two courses were completely different. However, when I actually started the course, I found some similar points between two majors. For instance, I realized that design also serves the brand. The education I received before taught me that the traditional purpose of design is to achieve a certain aesthetic standard. Design is for beauty. The primary goal of design is to please consumers and serve the public. All these other standard symbols still exist, but business decisions are more focused on whether it can support a brand or goal that people desire. In other words, make your brand stand out.

The content of this course is extremely comprehensive and complex. It consists of many dissimilar modules, and you need to choose different focuses according to your professional needs. These parts (such as IP/finance/branding/business models) are all your bricks. You need to combine bricks together with your unique style. In other words, you need to create a new business models and methodologies that have your style. I knew a lot of business secrets during the study: the importance of brands / New venture development / how to promote my brand and financial knowledge et al. 

As a summary of stage learning, this reflective article will focus on how to realize the uniqueness of the brand from the poster design of the brand part, and how to gain some practical experience from the business strategy simulation game

We were asked to design our own posters in the Branding part. Throughout the process, I realized the importance of the brand uniqueness.      

According to Kimbarovsky(2020), semiology is the study of signs and symbols and is the theoretical basis of all brand strategies. How to make your brand different is an ongoing question. The brand uniqueness some how create desire from customers. No one really needs an additional T-shirt or a pair of jeans, but we will continue to buy them. Some how, the way of banding strategy also highlights the value and energy of brand culture and brand background.

For many people, our choice of clothing is just a way to express our identity visually in the fashion industry. But why elements attract consumers to choose our products over others in the end. 

The answer is the distinctive way of branding which means companies, designers, retailers use their different strategies that consumers an emotional attachment, thereby motivating consumers to buy it. For example, the high-end lifestyle conveyed by LULULEMON. And the factor that stimulates the desire to buy is not only the unique constituent elements behind the brand but also the combination of the elements of brand marketing, apparel, physical store display space, business model; it is the combination of these elements and more than this factor. These elements combined, if understood by consumers, will lead them to buy products or services of characteristic brand retailers or a certain designer. 

The LULULEMON brand promotes the brand by building realtionships between customers and the brand. Chip Wilson, the founder of Lululemon, is a yoga enthusiast. He designed clothes that target the women’s yoga clothing market. And designed to take into account women of all sizes. Lululemon has earned great returns with the start-up period of “Precision Serving the Vertical Segment of Women’s Yoga Wear”. The relationship between consumers and the LULULEMON brand is the symbol and emotional bond of the brand.

The LULULEMON brand promotes the brand in a special way to maintain customer loyalty. They attract consumers with group culture: regular free yoga events are held to drive brand influence with KOI. Unlike traditional brands invite celebrity endorsements, Lululemon invites famous yoga teachers and fitness instructors to build a stable KOL team. Lululemon refers to these KOLs as brand ambassadors, using these KOLs to influence consumers. Lululemon taps the 20 most popular fitness instructors and yoga teachers to become their brand ambassadors, provide free clothing to brand ambassadors, and hang up brand ambassadors wearing Lululemon posters in the store. In return, these ambassadors also want to introduce their customers to Lululemon. Let the brand spread slowly in these KOL circles. LULULEMON establish a community-based marketing strategy through social networks, crowds, and store activities which makes them different.

In addition, LULULEMON maintain their branding effect by choose their target customers correctly.  The customer segments are targeted at people of the middle class and above (Female-dominated). Usually, they are well educated and have a certain level of consumption. They can afford a slightly higher price for the product. As the economy develops, these people are paying more attention to their additional attributes, such as design and brand value. At the same time, they have requirements for health and quality of life. The average price of each legging is around £ 40-50. So even LuluLemon pricing is not cheap compared with other similar sports brand UNDER ARMOR. The customer segment will choose this brand when they need a legging for yoga. The scientific way of customer segmentation and the choice of right target customer help LULULEMON to have their loyal customers.

Lululemon’s success is not accidental. They have a rounded system of business models. It accurately locates the customer base on the premise of fully grasping the market rules. At the same time, they will develop a new marketing communication model, relying on KOL’s word-of-mouth influence and meticulous community cultivation to achieve economic benefits and customer loyalty. Brand marketing does not refer to a trend, but continuous communication by giving the brand a story background (including online, offline, mobile devices, sales staff, loyal customers). Sometimes Brands will keep to strategies such as limited production/unique design and other product development methods to create exclusive concepts for their mass-produced products. Brands make consumers feel that they are not a group but an independent individual. 

When designing business models, I usually use a lot of notes to write down different elements to form a visual map, just like I used brainstorming when designing. Keep these elements easy to move and adjust at any time based on strategic changes. This approach is conducive to strategic changes and management of risks. A brief summary of the necessary elements allows us to see a lot of new visualization possibilities. Keep trying to produce important strategic innovations.

We have our own shoe company in Strategy Part. This is the first time we play a game like this and we have no idea at began. According to Bennett and Lemoine(2014) when we in a VUCA (Unstable, Uncertain, Complicated and Vague) business environment, what our team needs is specifically based on SWOT (Strength, Weakness, Opportunity, Threat) analysis Choice and the decision of strategy. We did well in the first two decisions.

But there are two problem we found during the game. First, we didn’t analyze our competitors correctly. we failed to analyze the underlying threat from our opponents which leads to an overly optimistically estimation compared the true future situation. Second, we are unable to react to the market responses calmly and perfectly. Every time we make a decision, we get feedback the next day. The effect of our attempts is not hundred percent same to our expectation, and each solution is not a “one-time operation”, then multiple subsequent choices will be needed as well. Because there is no chance for you to solve a problem with a simple attempt. It is a process to learn from marketing response and our corresponding de attempts. However, each step has to pay a price. There is no right or wrong solution, only good or bad. After all, companies have never been able to perfectly predict what new strategies their competitors will develop when they respond to changes in strategic direction, and how they will react when the market direction changes. It is essential to master accurate and scientific means of predictive analysis and develop the ability of continuously giving countermeasures based on market feedback.

There is also a very meaningful harvest for me. My teammates and me, as a team, the communication with my teammates helped me have different perspectives and improve my ideas. The accuracy of expressing my decisions is the weakness of mine which affects whether my teammates can understand my thoughts or not. Besides, it is inevitable that differences of opinion arise during the exchange, and you need to manage your emotions. Better give and receive feedback. This is the significance of teamwork.

Bibliography:

Kimbarovsky, R. (2020). What is Brand Identity and How To Create a Unique and Memorable One. Available at: https://www.crowdspring.com/blog/brand-identity/ [Accessed 7 Jan. 2020].

Bennett, N. and Lemoine, J. (2014). ‘What VUCA Really Means for You. Harvard Business Review Home’, Journal of January–February 2014 issue of Harvard Business Review.

DESIGN THINKING

This group of an ad from McDonald’s. It is called “Rain”, which is a group of ads with an impressionist style. It completed by creative agency TBWA. It is a totally different style of ad compare before. McDonald’s uses French streets as the background and through post-production. Show the view through the glass on a rainy day. Cleverly conveyed the strategy concept of “choose McDelivery in rainy days”. Rainy weather is the weather that everyone does not want to go out, a lot of people will imagine that if I can choose delivery it will be perfect. and McDonald’s stands in the customers to provide customers with a perfect solution.

This is exactly the “Empathize” point in advertising. It is the centerpiece of a human-centered design process.  The designer should understand customers, within the context of your design challenge. It is your effort to understand the way they do things and why their physical and emotional needs. It is a common phenomenon that rainy days lead to a decline in customer flow in the store. so the company offers perfect services — McDelivery. You just order online and you can get hot food as soon as possible.

In order to give us a better understanding of empathize and design thinking, we were asked to interview passersby for some shoe choices as a group. It have three point about how to empathize: Observe: View the status and behavior of the interviewee. Understand his background.

Engage: List the questions you want to know and talk to the interviewee in a guided way.

Watch and Listen: Patient listening is respect to others. Also, ask someone to show you how they complete a task. You need insights into people’s behavior. 

INTELLECTUAL PROPERTY

We explore the different types of IP (Intellectual Property) Rights relating to creative businesses with Naomi Korn. It including copyright, trademarks and registered designs. 

What is Intellectual Property

According to WIPO(2019), Intellectual property (IP) are creations of the mind, for example, literary and artistic works; designs; and symbols, words and images used in commerce. It is protected by law, such as, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. Also, it covers the copyright, patent and trademark et al,.

Intellectual Property for me

I knew this for a long time because I am a graphic designer. As we know designers must have a strong feeling of copyright in the works they design. Many cases tell us the importance of intellectual property. Otherwise, it is likely to be copied by many people when you don’t know it at all. 

Each country’s national conditions are different, and the protection measures for intellectual property rights are also different. There is no need to register copyright and no need to use a copyright symbol in the UK. if a work is protected by copyright, it will be protected anyway. However, you must register your work in China to protect your rights by law. If you haven’t, your work will not be protected by law. Also many people haven’t a strong sense of copyright and China’s laws on intellectual property protection still imperfect. So I guess it is why china has a lot of companies be copied.

I want to share a controversial case I hear it in class.

Art Rogers, a professional photographer, took a black-and-white photo of a man and a woman with their arms full of puppies. The photograph was simply entitled, Puppies, and was used on greeting cards.

Jeff Koons, an internationally known artist, found the picture and make a sculpture based on the photograph. He changed a lot of details, such as the puppies were to be made blue, their noses exaggerated, and flowers to be added to the hair of the man and woman. The sculpture, entitled, String of Puppies, became a success. Koons sold three of them for a total of $367,000.

Rogers sued Koons and the Sonnabend Gallery for copyright infringement. So do you think this is an infringement?

I thought about it for a long time when I first knew this case, because these are two different ways of expression. One is through photography, and the other is to transform the plane into three-dimensional work. It is difficult to define in art. The work of Jeff koons like a derivative work basic on Rogers.

The truth is, the Court think both “substantial similarity” and that Koons had access to the picture. The similarity was so close that the average layperson would recognize the copying, a measure for evaluation. Thus the sculpture was found to be a copy of the work by Rogers.

Resource:

WIPO(2019) About IP. Available at: https://www.wipo.int/about-ip/en/ (Accessed: 29 November 2019).

ENTREPRENEURIAL FINANCE

In the entrepreneurial finance class, I was exposed to basic economic principles and financial knowledge with Simon. I want to share some basic knowledge about finance based on my understanding.

In the undergraduate, I studied graphic design, so I did not study finance systematically. Through this course, I can better understand and master the knowledge of entrepreneurial finance.

The beginning of the course always feels difficult to get started, and I am not good at math, I will instinctively resist the content that needs to be calculated.

The course starts with a simple example that allows me to understand the concept of the profit and loss statement more accurately. We get basic data about CARL’S CAFE, and we need to calculate all profit and loss on his process. That means we need a profit and loss statement. The profit and loss statement can objectively record what happened over a period of time. Then I learned five levels of profit: gross profit, EBITDA, operating profit, profit before tax and profit after tax. We practiced with the profit and loss statements of Tesco and Apple.

We were also asked to calculate KPIs(KPI:Key Performance Indicator) for each part. You need to get total fixed costs, such as wages, rent, clearing, advertising, etc. and then divided by total monthly sales(excl VAT) to get the KPI indicator for that part.

In the other chapter, we learned the importance of gross profit, and the formula is 

Sales – the cost of sales = gross profit

In the process of learning, I think the easiest step is to understand the concept because calculating is indeed a big challenge for me. For me, the significance of this lesson is not to train myself as a professional accountant, but to understand how a business works. It is true that business operations are not easy, and this course is only a small part of it, but it is always pleasing to obtain knowledge. After learning this basic business knowledge, we can learn more in-depth. From the profit and loss statement, we can see the financial status of many companies and whether the economy is healthy. After calculation, we can more easily dig out much key information hidden behind the report. It is also one of the basic skills an entrepreneur needs to master. That means you will find the problems more easily when profit is not good. and adjust the data of each part when you want to change the strategy. This is not simply one part.

In general, it is a combination of theoretical and applied courses based on accounting, financial management, and other related disciplines. That means you need to combine other knowledge to analyze. Based on the financial statements and related information prepared by the enterprise as the basic basis, using certain analysis methods and techniques to evaluate the financial status and operating results of the enterprise. It’s a good thing to know what’s short plate with you. Face it and change it.

NEW VENTURE DEVELOPMENT

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In the second week, we learned about New venture development. Every person has a million ideas in his life. Many people want to make money and have their own business, whether it’s large or small. Both businessmen and entrepreneurs could make money. So what’s the difference between them?

For example, shipbuilding. Entrepreneurs focus on solving problems: make the best boat in the world and make some money by the way. However, businessmen just focus on making money, no matter to make shoes or ship. Making shoes well is to make more money. According to Drucker(2002), Entrepreneurship should not be measured in terms of size, newness and/or type of a company, but instead in terms of certain characteristics and values of their outputs – ‘They create something new, something different [not only better]; they change or transmute values.’

Then, most people will choose to start writing a business plan to reduce risk. and pitch it to investors, assemble a team, introduce a product, and start selling. However, According to new research by Harvard Business School’s Shikhar Ghosh shows, 75% of all start-ups fail. 

As reported by CB insights, “no market need” is the top1 reasons startups fail. In other words, even if entrepreneurs have excellent technology, data, and consultants, they cannot solve market problems. Failure is an inevitable consequence. Followed of reason by “ran out of cash” and “not the right team” respectively. A diverse team with different skill sets was cited as being critical to the success of starting a company. The point is CTO(Chief Technology Officer) as important as a founder. CTO is a partner can balance founder out. and provide sanity checks for business and technology decisions made.

Nowadays, we have a new model called the “lean start-up”.Using lean methods across a portfolio of start-ups will result in fewer failures than using traditional methods. That means it better than “big design up front”. It more focuses on an elaborate planning and customer feedback. The lean method has three key principles:

  • No intricate business plan. (have untested hypotheses—basically, good guesses)
  • Agile development. (eliminates wasted time and resources by developing the product iteratively and incrementally.)
  • Get feedback from the customer. (customer development to test their hypotheses) Prototypes are invaluable. It is a good opportunity to get feedback along the way from actual users when you building a process for your product.

Over the past 20 years, model of business always changing. Many company has focused on improving efficiency by reducing costs. But just focusing on improving existing business models is no longer enough. Almost every big company realized that companies need to create new business models to ensure their survival and growth. This means that new organizational structures and skills are needed. And how to innovate the process is the problem we still have to explore.

Source:

Drucker, Peter Ferdinand (2002) Innovation and Entrepreneurship: Practice and Principles. Harper Collins.

THE SECRET OF BRANDING

The brand is at the heart of the marketing strategy.

Many factors can affect product prices, such as Product and Image differentiation. In fact, the image of the packaging of the product will affect the choice of consumers. Most people prefer to choose products with good packaging if it has the same prices.

In the supermarket, it is also a bottle of still water. Why Evian’s still water can sell more expensive than Saninsbury’s still water. The fact is Saninsbury is a regional brand, Evian is a international brand. When a foreigner is choosing water, they are more likely to prefer brands that they have heard or understood.

This is the effect of the brand.

Brand positioning is important when creating a new brand. You need to set the new POPs & PODs. Points-of-parity associations (POPs) are not necessarily unique to the brand but may in fact be shared with other brands. In other words, That is the common characteristic of similar brands.

Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe it is unique than others.

Saninsbury
Evian

Then we can see the information on packaging:

  • Natural Mineral Water
  • Building a circular economy together/ 100% recycled plastic/ seeking Zero plastic bottle waste
  • Delicately crafted by nature over a 15-year journey through the French Alps
  • For a unique balance of minerals.
  • Untouched/ naturally pure and refreshing taste

The POPs are “Natural Mineral Water”. The PODs are “by nature over a 15-year journey through the French Alps” and “untouched/ naturally pure and refreshing taste”. The history of Evian natural mineral water is above all the history of a unique natural site born during the Ice Age, almost 50,000 years ago, in the heart of the French Alps in Evian-Les-Bains. The rain and snowfall in the catchment area of the plateau of Gavot, the precious drops acquiring their unique mineral composition during a 15-year-long journey through the rocks before being bottled at the source. It uses the number to show reflecting the water specificity and preciously. “Building a circular economy together/ 100% recycled plastic/ seeking Zero plastic bottle waste” Its aim is to show the brand’s duty and good brand image.

A brand mantra is an essential part of the brand. It is an articulation of the “heart and soul” of the brand. That means it is the core of the brand. Designing the Brand Mantra including Emotional Modifier/Descriptive Modifier/Brand Functions.

For example, the brad mantra of Evian is “Untouched by man. Perfect by nature”. The emotional modifier is “Perfect”, the descriptive modifier is “nature” and the brand functions is “untouched by man”.

ADVERTISING

We discussed advertising with Helen Robinson in Week 10. Nowadays, technology has changed the world, and the way advertising is being transformed. “big data” is still the keyword, it is everywhere in our lives. In other words, data has become a new common language for human beings. Everyone can be digitized. Mobile media has become an important part of life services. For the advertising industry, changes are also needed. Almost everyone has a mobile phone in contemporary society. We are receiving information from everywhere on the Internet at all times. We are in the age of information explosion, so how to make the brand stand out from the flow of information explosion. This is the ultimate purpose of advertising. The advertising industry needs to make changes in different channels, different brand stories, styles and characteristics according to the brand. The all the aim is to get the ad noticed. 

We need to choose an advertising appeal: rational or emotional appeals. Also, we can choose different expressions. According to Appelbaum and Halliburton (1993) says we can use a variety of formats. Such as:

  • Slice of life
  • Story around product
  • Testimonials by experts, celebrities, ordinary people
  • Talking heads
  • Characters associated with products
  • Demonstrations
  • Product in action
  • Cartoon
  • International vs national

Also, Yeshin (2006) suggests that effective advertising must satisfy the following:-

  • Be derived from sound marketing strategy
  • Take the consumer’s viewpoint
  • Be persuasive
  • Find a way to break through the clutter
  • Prevent the creative idea from overwhelming the strategy

During the class, we were asked to form a group to share ads with different formats points: 

Product in Action:  Apple – Air pods pro

It uses about three formats in this ad: Characters associated with products/Demonstrations/Product in action. The product is the key, and the state of the user when using the product is added with music. At the same time, the small headphones are amplified and decomposed to satisfy the user’s curiosity. At the same time attracted by the subtle structure. 

Global: We accept – AirBNB

It use about three formats in this ad: International vs national/Characters associated with products.

Airbnb is a well-known company. It is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The existence of Airbnb means that you can rent a house almost worldwide. But not everyone can rent a house, and some landlords don’t want to rent it to you. E.g Disaster victims. People who’ve been displaced, whether because of war or conflict or other factors, are acutely vulnerable to not being accepted. And they are the people who really need housing indeed. So Airbnb started by providing housing for evacuees of disasters and have since provided housing during 54 global disasters. They partnered with organizations dedicated to the needs of refugees around the world. The hosts that appeared in the video were Airbnb, indicating that they were willing to accept and join the event.

Through analysis, we can find that advertising does not only use a single format. Usually, an ad will use several formats to expand the effectiveness of the promotion. How to choose the right formats to match the brand of style and product is we need to consider.

OUR DRAGONS’ DEN

In the new module of the course, we need to form a team to start our own business. We need to presentation for Dragons at the end. So I became a teammate with JACK and JOM. Our team name is T9.

Our first idea was actually put forward by JACK and it was about the funeral industry. We want everyone to have a unique ritual when they die. We want everyone to be remembered. Because “when his friends no longer remember him, he is really dead.” We offer different activities based on the ideas of the parties. If you want your funeral to be funny, maybe you can refer to this. It was a unique funeral.

Click here:

(https://www.thesun.co.uk/news/10131142/funeral-laughter-help-let-me-out-message/)

He had recorded a short clip of him saying: “Help, let me out. Where the f*** am I? Let me out, let me out, it’s f***ing dark in here.“Is that a priest I can hear? This is Shay, I’m in the box. No in f***ing front of you. I’m dead.”

The joker then sang: “Hello again hello, hello I just called to say good bye.”

But then this method was rejected. 

So I had another idea.

With the development of the fashion industry, garment waste is becoming more serious. Around 30% of the clothing in the wardrobe of the UK household has not been worn for at least a year. The average garment is worn only ten times before discarded. Three in five Londoners throw away clothes just because they are outdated.

The idea name is “Begin again”. It is a redesign service that up-cycles your old clothes into new specialized stylish items.

In other words, we redesign the old-fashioned pieces of clothes into new stylish pieces. Our customers are people who want to get a new different experience, interested in sustainable products and own a lot of old-fashion clothes. 

IF YOU WANT TO TRY OUR SERVICE, JUST NEED SUPER EASY 4 STEPS.

Step1: You need to go to our online website to choose the design you want.

Step2: Choose which part you want to re-design of clothes. Our website provides the ‘visualization of pattern cutting templates, make customers use it more easily. Also, you could choose to add some accessories such as button, pocket. (Of course, you need to pay more)

Step3: Place an order, make a payment.

Step4: Drop at the postal.

After ten days we will send new clothes for u by delivery.

In the beginning, our idea was to open a offline studio. People bring old clothes that they need to transform into our studio, and we teach clients how to transform the clothes they want. However, this has to face the problem of cost, and the cost of site rental and sewing machinery costs a lot of money. We cannot make a profit if the price of our course is too cheap. Conversely, courses that are too expensive will result in reduced passenger flow. So we chose the online model to reduce costs.

More info:

https://www.thesun.co.uk/news/10131142/funeral-laughter-help-let-me-out-message/

FRIEZE LONDON

The atmosphere in London this week has been electric, cause Frieze is back!! Frieze is an art fair. You can experience multiculturalism here. More than 160 galleries around the world will exhibit their works here.

The “Art Fair” is a professional market form that combines art goods to show exchanges and transactions and combines artistic aesthetics with the commodity economy. It is a new thing for the whole world, and it has been less than 50 years old.

whether for contemporary art or traditional art, the art fair has played a basic role in eliminating the geographical location restrictions, integrating artist resources as a network to solve the imbalance between the demand for the art collection and the supply of limited galleries.

Art fairs stimulate contemporary art creation and promote the development of the local art environment. Frieze has grown from the original contemporary art review magazine to the contemporary art fair. So far, “Frieze” has gradually evolved into a large art group including publishing, exhibition, education and other businesses. The exhibition includes many sections. “Main” is a gallery with a long history and influence in the industry, such as the Gagosian Gallery and the White Cube Gallery. The “Focus” section more focuses on promoting the work of emerging artists. Besides, the “Projects” section is made by the Frieze Expo Organizing Committee or invited artists to create artwork for the Expo (Frieze London, 2019). After developing from a single art exhibition to an art group, Frieze as a brand is a guarantee for the quality of the exhibition works. For mature artists, art exhibitions like Frieze help artists focus more on artistic creation rather than spending extra time promoting their works. For emerging artists, the brand effect of the art exhibition itself is an endorsement for them. Frieze is good platform between artist, gallery and buyer.

SOME GALLERY

In addition, after developing from a single art exhibition to an art group with brand effect, art groups also began to consider the sustainable development of the art industry. “Frieze” combines traditional sales art projects with non-sales art projects, which shows that art fairs are not only about money but also reflects it’s artistic ideas and viewpoints as an art creation initiator through their projects.

Frieze, as a rising star in the art exhibition, although it only has a history of more than ten years, has become a huge art group that seeks the sustainable development of the art industry and undertakes social responsibility. Judging from the long history of the art fairs, not all art fairs can exist all the time. Today’s Art Fair is no longer a by-product attached to the art gallery system, but an organic part that has a great impact on the art ecology.

Bibliography:

Frieze London 2019: Highlights Including Talks, Solos, Themed Shows and Curated Programmes. (2019). [ebook] Available at: https://frieze.com/sites/default/files/fairs_and_events/fl19_highlights_press_pack.pdf [Accessed 17 Oct. 2019].

Morgner, C. (2014). The Evolution of the Art Fair. Historical Social Research, pp.318-336

Know more about Frieze:

https://frieze.com/fairs/frieze-london/galleries?page=2

USING DYSON AS AN EXAMPLE TO ASSESS THE SOURCE AND SUSTAINABILITY OF COMPETITIVE ADVANTAGE

https://www.youtube.com/watch?v=D1jx5F5976U

Dyson is a world-renowned electrical products company. Today I will analyze Dyson from two aspects.

1: Critically evaluate the long term sustainability of Dyson’s global competitive advantage

From the perspective of “economies of scale”: Dyson began to seek to transfer production to Malaysia. In my opinion, in part due to the fact that Dyson is trying to reduce production costs. Because of the transfer of production to Malaysia will certainly reduce the cost of unit goods.
Although the transfer of the production line is a substantially fixed cost expenditure. The good sales reactions in the Asian and American markets partly explain why Dyson is willing to generate a large fixed expenditure to transfer the production line to Malaysia, and the strong market prospect gives them the confidence to recover the expenditure. So this approach is beneficial for the sustainable development of the company.
As for Consumer preference, To some extent, the high pricing strategy of Dyson company has turned the product of Dyson vacuum cleaner into a sign in the industry. Although the price is on the high side, it gives consumers the impression of high price, good quality, and good effect. With the emergence of low-priced similar products, the sales volume of Dyson’s products will be challenged, but the perfect impression he left to consumers can also maintain a fixed consumer group to some extent.
As for Switching costs, “only 35% of Dyson owners would buy another one compared with 50% five years ago”, changing from Dyson’s products to cheaper products will not cause great trouble to consumers, unless the experience of cheaper products to consumers has a huge gap compared with Dyson’s products, I think Dyson should like apple to launch a discount like old for new service or enhance the interaction function or connection between various products of Dyson, so as to Stop consumers from turning to similar products of other brands
All in all, I think Dyson’s global competition strategy has a sustainable development prospect, but at the same time, there are many things that can be improved.

2. Suggestions for the sustainable development of Dyson’s global strategy


I think Dyson should hope that Apple will launch discount services such as old for new, or enhance the interaction function or connection between Dyson’s various products, such as the sharing of charging parts between Dyson’s washing machine, hairdryer and vacuum cleaner, and the purchase of other Dyson products with discounts if Dyson’s products already exist, or the use of Dyson’s product group can provide consumers with Suggestions for healthy life based on big data analysis. In this way, consumers can be prevented from turning to similar products of other brands.
Dyson can consider making products suitable for local demand in Asia and North America, so as to recover the cost of transferring production to Malaysia as early as possible.
For the domestic market in the UK, Dyson can take into account the disguised price reduction to attract consumers, or maintain its share in the domestic market.

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