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ManagementGrowth StrategyFintechIntermediate2016
Paytm: Demonetisation Opportunity
The challenge
James Dyson spent 5 years and created 5,127 prototypes developing a bagless vacuum cleaner. When he approached established manufacturers to license his invention, they all rejected him — their profitable razor-and-blades model depended on selling replacement bags. He had to go it alone.
The strategy
Dyson's strategy was to sell directly to consumers and position the vacuum as premium technology, not a commodity appliance. He would charge more than established brands and justify it through superior performance and innovative design.
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Try the full case free →Key lessons (preview)
- Incumbents rejecting your innovation can force you to build a more valuable independent business.
- Premium pricing for genuinely superior performance is a sustainable strategy.
- Demonstration-based marketing is powerful when your product visibly outperforms competitors.