Going for growth
A Dixons Group case study

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Page 2: Growing the UK market

Dixons Group 6 Image 5Dixons is good at forecasting 'Where is consumer spending likely to head next, and why?' It recognises that change is inevitable, and anticipates it. Portrait photography flourished during the Second World War, but declined after 1945. Dixons foresaw where consumer tastes would move: to DIY photography. By the early 1950s, Dixons led the way in promoting and selling photographic equipment.

Anticipating developments in new technology and rising household incomes, Dixons positioned itself to take advantage of increased consumer enthusiasm for: home movies, colour television, recording T.V. programmes on video and DIY video production. It did this by strengthening its market presence, first by acquiring retailers Currys (1984) and then Wigfalls (1988), which increased the Group’s store portfolio. It also identified and tapped a new source of technological excellence: Japan.

In the 1990s the company recognised consumers’ growing interest in personal computers. In 1993 it acquired PC World, which at that time had only four stores. There are now over 90 PC World stores in the UK and over 30% of homeowners now own a PC.

Dixons is always looking to move into lines of business where its previous experience can be turned into a competitive advantage. New technology has transformed the market for equipment for personal communications. The company predicted consumer demand and has made this market its own by establishing The Link, a specialist retail outlet in communication products. The Group has already sold over three and a half million mobile phones.

Dixons Group | Going for growth