Hoovers Folly Hoover History Founded in 1907 by
Hoover’s Folly
Hoover History • Founded in 1907 by former janitor Murray • • • Spanglar, who invented the first “suction sweeper” Offers to let customers try the product for free before purchase. Used technology to aid war effort in 1942 Today’s product selection includes: – – Uprights Deep cleaners Hard floor cleaners Commercial vacuums
Dyson • Founded by James Dyson • Vacuumed his home in 1978 and became fascinated with the problem of suction loss. • After 5 years and over 5, 000 prototypes, he created the first bag less vacuum. • Attempted to sell his technology; turned down at every turn.
Dyson (cont. ) • Dyson manufactured his own vacuum cleaner, the Dyson Cyclone, in 1993. • Siemens and Electrolux (along with other companies), tried to stop Dyson from showing how their vacuums lost suction (as shown in television commercials and Dyson-sponsored literature)
Dyson’s Edge According to this chart, the suction on the Dyson Cyclone remains constant; whereas the suction on other vacuums (regardless of bag use) eventually falls off.
Hoover Rationale
Hoover’s Rationale • Hoover rejected Dyson’s technology, asserting • • • that bags were necessary for vacuums. Bag less technology means that the filter must be cleaned every few months; this process acted as a deterrent to purchasing the technology. Dyson nearly went bankrupt fighting Hoover patent infringement. In 1999, Hoover created a product that imitated Dyson. After 18 months, Dyson won against Hoover UK for patent infringement.
Hoover Vortex • Hoover introduced the “vortex” technology, so • • • similar to Dyson that they returned to court for patent infringement. Hoover won the case in 2001. Dyson appealed and won in 2003. In 1997, ¼ of all vacuums sold in UK were made by Hoover. Now, Hoover has less than 10% of vacuum cleaner market.
Hoover’s Mea Culpa • Hoover now admits that they should have bought the technology in order to keep it off of the market. • Dyson’s increased market share indicates a future of bag less vacuums when the patent expires.
Mea Culpa (cont. ) • According to Hoover Europe’s Vice- President Mike Rutter: "I do regret that Hoover as a company did not take the product technology off Dyson; it would have lain on the shelf and not been used".
Why Hoover Rejected Dyson Technology • Executives did not believe a bag less vacuum could gain • significant market share and become a threat. They believed that consumers would prefer the standard bag to this complicated machinery: www. dyson. com
• Hoover’s rejection of Dyson technology was short • sighted. Hoover should have purchased the technology and either: – Kept the technology out of the mainstream – Used it to produce superior, bag less vacuums Hoover’s Current Market Share: http: //www. nitibhan. com/perspective/2006/02/one_look_at_gen. html
Hoover’s Future • To ensure its survival, Hoover must stay on top of new technology. • It must create a department dedicated to seeking out this technology. This department should include: – Marketing experts – Technology experts – Executives with decision-making power
Hoover’s Future (cont. ) • The appointed experts should present their findings to a board capable of determining the potential threat of new technology. • Had this process been followed in regard to Dyson, Hoover would have purchased the technology and kept it “on the shelf”.
Works Cited • (2001 Jan 12). Hoover wins court battle with Dyson. • • • Retrieved February 8, 2007, from BBC News Web site: http: //news. bbc. co. uk/2/hi/business/1113990. stm (2006, Sep 26). Dyson bag less vacuum review. Retrieved February 8, 2007, from EOpinions. com Web site: http: //www. epinions. com/content_174097337988 (2007). Retrieved February 8, 2007, from The Hoover Company Web site: http: //www. hoover. com/db/hvr. Home. asp (2005). Dyson Story. Retrieved February 8, 2007, from Dyson Web site: http: //www. dyson. com/nav/In. Page. Frame. asp? id=DYSO N/HIST/HIDE&sinavtype=inpage
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