AMWAY Case Study

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•Found on Nov 9 1959 •Original Name: American Way •Headquarters: Ada, Michigan, US •Area Served: World Wide •Number of Employees: 15,000 (in 2020) •Primary deals in Health, Beauty, and Home Care •Use Multi Level Marketing Strategy to sell Products.


Strengths • Strong Research & Development • Premium Quality • Direct Selling Portfolio • Provide very convenient part time jobs to women. • Negligible or no competition. • Large distributors all over the world. • Global Presence.


• Lack of infrastructure • Alarming attrition rate (60-65%) • Distributors ‘self Consumed’ (5060%) • Products perceived to be expensive. • Customer Dissatisfaction • Narrow focus on customer service • Distributors lacked awareness of products. • Active distributors remained low (35-40%)


Strategy


Strategy • Goods will be sold in retail outlets. • Localization of the employer. • Localization of research and development. • Sales Representatives • Income of sales distributors will be based on direct selling done by others. • Agreement with government and companies. • Transparency and credibility of company’s management.



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