The Development of the UK Domestic Electrical Appliance Industry over the period 1963 to 1990

Wolfe, Brian Sinclair (1996). The Development of the UK Domestic Electrical Appliance Industry over the period 1963 to 1990. MPhil thesis The Open University.

DOI: https://doi.org/10.21954/ou.ro.0000f77b

Abstract

The Thesis determined that the development of the DEAI was characterised by a contraction of the industry, a reduction in profitability, coupled with a massive growth in import penetration from 6% to almost 50% over the period. Much was self-induced by minimal investment in product development, coupled with a lack of understanding of the increasingly competitive UK market. In the distribution and retailing sectors there had been a rationalisation of wholesaler and retail chains.

The prime tool used in analysing the manner in which companies compete within the DEAI was the PORTER Five Force Model. The method employed calibrated the strength of each force thereby determining a “metric" which could be used In comparing each force over the 27 year period. In-so-doing it was found that the industry was highly competitive and that consumers had become more discerning in their selection of appliances. Importer’s brands and their products had become more popular. The application of the Porter Model led to the conclusion that “Buyer Power” i.e. the power of the retailer’s buyers had significantly increased. Additionally industry data indicated that the industry’s profitability had also decreased, as predicted by the Porter theory.

Extensive interviews were carried out with industry decision makers which provided a basis of an industry view , which was used to benchmark the results achieved through the analysis using the Porter model.

During the course of the study it was suggested that the management within the industry had conformed to a set way of thinking or industry wide paradigm or “recipe”. This assertion was confirmed during the analysis.

It was also clear that UK governments over the period had enacted legislation which caused the further contraction and instability within the DEAI.

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About

  • Item ORO ID
  • 63355
  • Item Type
  • MPhil Thesis
  • Keywords
  • electric household appliance industry
  • Academic Unit or School
  • Faculty of Business and Law (FBL)
  • Copyright Holders
  • © 1995 Brian Sinclair Wolfe
  • Depositing User
  • ORO Import

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