Unlocking or draining brand potential?

Dyson, the British technology company who brought the world the bagless vacuum cleaner, is taking a leap into a new field – automotive industry. The company announced a £2bn project to develop and build electric cars from scratch. Dyson is confident that its audacious attempt can be achieved due to its ingenuity, engineering knowhow and strong technology. James Dyson said he was planning a “radically different” type of electric car than what was on the market, followed by two more models that target at a more mass market (Campbell & Pooler, 2018).

The automotive industry is notoriously brutal to newcomers. Even Apple scaled back its automotive ambitions and Google abandoned the plan to build its own cars. Not to mention that Tesla has been late to deliver every model and has yet to make any money (Griffith, 2017). As an outsider, will Dyson pull it off? “Most of the incumbent advantages in the car industry today become a disadvantage very quickly because you’re sitting on infrastructure and know-how for the cars of yesterday, not the cars of tomorrow,” Conze, the CEO, says (Griffith, 2017). Indeed, the company has a reputation for engineering smart. But is “knowledgeable enough”? How about the brand? The passion project may unlock the brand potential by reinforcing Dyson’s reputation as an inventor. The company also takes a huge risk in draining its resources.

The only company has a successful crossover branding I know of is Michelin. The premium, high-quality tire manufacturer also publishes destination travel guides – Michelin Guide, which awards Michelin stars to restaurants. They did an excellent job by balancing the two distinctive business expertise.

What do you think of Dyson’s new ambition? Will your next car be Dyson?

References:
Campbell, P., & Pooler, M., (2018, Feb. 13). Dyson bets on electric cars to shake up industry. Financial Times. Retrieved from https://www.ft.com/content/564aa742-0cac-11e8-8eb7-42f857ea9f09
Griffith, E., (2017, Oct. 4). In building an electric car, Dyson goes its own way. WIRED. Retrieved from https://www.wired.com/story/in-building-an-electric-car-dyson-goes-its-own-way/