There are hundreds, if not thousands, of vacuum cleaners in the global market. British inventor James Dyson entered this highly competitive market in 1991 and began selling his first mass-market vacuum cleaner two years later. Since then, Dyson has achieved global recognition for his imaginative re-designing of hand dryers, hair dryers, heaters, and bladeless fans. More recently, he has focused on the vexed issue of reliable batteries for automobiles.

Since 2015, Dyson has had 400 engineers working on his new electric car, which he plans to launch in 2020. The company claims that their new batteries will be twice as efficient as existing batteries and that the design of both the battery and the vehicle are radically different. So far, Dyson has invested $3.32 billion in the project. Just under half of the investment has been devoted to the actual design of the car; the rest, to battery research and associated projects. The most immediate competitor is likely to be the more upmarket Tesla cars. However, Tesla vehicles are currently out of most customers’ price range—the cheapest is the Model 3, at $46,000, and the Model S starts at $80,000.

1. Why is it important for Dyson to have a mission statement? How do the strategic decisions described in this case support Dyson’s mission?

2. Using examples from the case, describe how Dyson’s managers can use critical question analysis to formulate a strategy.

3. Which of the three generic strategies identified by Porter best describes Dyson’s strategy? Explain your reasons for choosing this strategy.