Maytag intends to sell Hoover. Apparently, Hoover's market share had fallen dramatically in the last quarter of 2005 and this first mover - the inventor of the vacuum cleaner - has thrown up its hands and given up the fight against Dyson - the upstart entrant in the playing field. This articlefrom the Times Online has some amazing figures for the market share beating taken by Hoover in the 4 years since Dyson entered the US market. I've converted their table of figures into a chart that better demonstrates the plunge,

Consistently across all the news and analysis this weekend is the singular message that this drop in Hoover's market share in just four years, after decades of market leadership, is entirely due to the lack of any consistent strategy of innovation and design. On the other hand, Dyson's iconic status as an industrial design leader, engineering innovator and persistent inventor (over 5000 prototypes alone for the first model James Dyson launched) does not require introduction. Add to this, their award winning new market entry strategy and you have all the ingredients of a winner.

What is amazing is that some ways this entire episode breaks all the rules of conventional business wisdom - vacuum cleaners are commodities in today's market, while every other player in the market competed on price, Dyson walked in not only with an entirely new technology but also pegged his unusual looking (then) product at a price point over 200% higher than the industry average. He was the late entrant in a very mature market with very established players with very well known brands - after all 'hoover' has become a generic term for cleaning up in UK english. Here are the seeds of a case study of disruptive innovation and the strategic use of good design.