AMWAY CASE STUDY- MyAssignmenthelp.com

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Amway
Case
Study
CREATING A CORPORATE SOCIAL RESPONSIBILITY
STRATEGY
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About Amway
Amway is considered to be the pioneer of
multilevel marketing and direct sales marketing.
The original product offered by Amway was liquid
cleansing. It was the first concentrated,
bio-degradable and environment-friendly cleansing
product.
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About Amway
Amway has become the worlds largest direct sales
business with 3 million independent consultants
who promote more than 450 personal care,
household, nutrition and cleaning products. It is
a global player of personal and skin care.
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Brief History of Amway
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Brief History of Amway
Amway has rich adventurous history.
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Brief History of Amway
Amway was founded by two Dutch friends
Richard M. DeVos, born in the small nearby
community of Ada in 1926
Jay Van Andel, born in Grand Rapids, Michigan, in
1924
They met at Christian High School in Grand Rapids.
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Brief History of Amway
After they returned from World War II, they
started a flying school. After they got some
experience in other business as well, they sailed
to Latin America. But the vessel sank in the
Caribbean and they had to stay in South America
for six months. 
In 1949, Jay Van Andel and Rich DeVos become
distributors of the Nutrilite brand.
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Brief History of Amway
When they experienced modest success in their
retail sales, in April 1959 they created American
Way Association and later renamed it as Amway
Distributors Association with the purpose of
protecting individual distributors.
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Brief History of Amway
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The Vision of Company
Helping people live better lives
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SWOT Analysis of Amway
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SWOT Analysis of Amway
With SWOT analysis, strengths, weaknesses,
opportunities and threats can be reviewed in
order to decide further planning for the
organization.
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SWOT Analysis of Amway
Strength

• Amways One-by-One campaign for children engages
  various countries, employees and distributors to
  help children in need. The campaign has tasted
  success in United States, Guatemala and China

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SWOT Analysis of Amway
Strength

• Amway is experiencing increasing retail sales
  worldwide

Weakness

• The only way one could get hold of the Amway
  products is online facility and through business
  agents. It is missing on the revenue it could
  earn from retail sales

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SWOT Analysis of Amway
Strength

• This multinational American company has bagged
  several awards like Asia Pacific Frost Sullivan
  Water Filtration Company of the Year Award and
  LEED Gold Certification

Weakness

• The cost of the products is high compared to
  other brands

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SWOT Analysis of Amway
Strength

• Amway is considered among the top 30 Americas
  privately held companies

Weakness

• Amway does not promote its products and services
  by TV advertisement or any brand ambassador.

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SWOT Analysis of Amway
Strength

• This company does trading in more than 80
  countries with more than 3 million individual
  business owners

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SWOT Analysis of Amway
Strength

• Amway has a wide range of products divided into
  five categories personal care, home care,
  nutrition and wellness, cosmetics and gift
  catalogue.

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SWOT Analysis of Amway
Opportunity

• Increasing availability of the products in
  international market

Threats

• Competition is increasing with days both
  nationally and internationally

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SWOT Analysis of Amway
Opportunity

• Online platform has proved to be an ideal scope
  for Amway to promote its products internationally

Threats

• There is a possibility that the consumer could
  switch to competitors products as they are
  cheaper

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SWOT Analysis of Amway
Opportunity

• There is a bright opportunity for this
  organization. It could tie up with national and
  international chains of beauty salons and beauty
  experts in order to introduce its products to
  more consumers.

Threats

• Local products pose threat to this company as
  they are cheaper in cost and feasible to more
  consumers.

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PEST Analysis
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PEST Analysis
Economical factors

• The success behind Amways growth is the
  localization of the employees, business model,
  production and raw material

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PEST Analysis
Economical factors

• This company has invested 1.5 million to
  localize RD model in China

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PEST Analysis
Political factors

• It was 20 years ago in 1995 when Amway entered
  the Chinese market. This company had experienced
  success. But at the same time it faced challenges
  as China was becoming a democratic country. But
  in 1998, China officials placed ban on the direct
  marketing, as the Chinese government thought
  direct marketing was the base of criminal
  activities. But after three months, they lifted
  the ban after heavy lobbying from American
  businessmen and Amway got its market back

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PEST Analysis
Economical factors

• Amways board of directors takes the
  responsibility to provide an overview of the
  company to its shareholders and stakeholders

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PEST Analysis
Economical factors
Political factors

• This company has re-located its production
  factories in China in order to export products in
  the Asian countries

• 50 percent of raw material is acquired from the
  Chinese market

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PEST Analysis
Economical factors

• The labor cost in China is cheaper compared to
  United States, so 2000 Chinese were appointed
  employees in this company

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PEST Analysis
Economical factors

• Amways economic growth has increased due to its
  low cost and low risk business opportunity for
  IBOs (independent business owners) based on
  selling quality products.

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PEST Analysis
Technological factors
Social factors

• Amway contributed in the development of local
  communities by providing them financial and human
  support in areas like art, culture, human
  service, education, sports and environment

• Amway has set up RD department in order to
  conduct researches on how to manage teamwork to
  achieve its vision. For example, One-by-One
  Campaign has proved to be a successful one for
  the company

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PEST Analysis
Technological factors
Social factors

• This company has invested 4 million for this
  cause

• This company changes its technology based on the
  system. For instance, shareholders and
  stakeholders have to meet IBOs, employees and
  board of directors to get more information about
  the company

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PEST Analysis
Social factors

• This international organization is aware of
  increasing health consciousness in consumers, so
  it creates products out of natural resources that
  are investigated by thousands of professional
  scientists in order to provide safety and
  security to consumers. This step prevents
  environment from any harmful impact.

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PEST Analysis
Technological factors

• Amways website has increasing rate of visits
  from interested stakeholders and shareholders who
  want to invest in the company

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PEST Analysis
Technological factors
Social factors

• Artistry products that come under the Amway brand
  are proved to be harmless for the skin and no
  artificial color is used in its production.

• This company has developed new tailored products
  like whitening cream as its new innovation.

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Conclusion
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Conclusion

• Amway maintains family values as it grew out of a
  family business.
• The IBOs of the company are inspired to
  contribute in the communities in order to make
  difference in other peoples lives.
• This organization strives to practice environment
  aspects and improves the existing products.

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Conclusion

• This international brand continues to rise on the
  economic curve.
• Shown other corporations how to manage the work
  force and direct positive force.
• This has brought forth their new brand name,
  Amway Global

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Conclusion
With these two models, the company can understand
what should be the future strategies for the
organization in order to continue their success
journey. The reviewer can
comprehend what are the areas that this company
still need to work and what should be the ways to
fight the odds in the competition.
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Conclusion
By evaluating the SWOT and PEST analysis, you get
to know crucial facts that are significant in
building marketing strategies.
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