Amway Essay 10

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Amway is an interesting example of a company that reviews its strategic capabilities and uses this review to develop its products and markets. More than 450 products carry the Amway name in the areas of nutrition, health, beauty and home. Amway also has a range of products that include other well known branded goods. The company also offers a variety of third party services. Amway is different from the more traditional distribution channels in that the business has developed through direct selling. Amway has over three million Independent Business Owners (IBOs) worldwide. IBOs deal directly with Clients, build up personal relationships and deliver direct to Clients’ homes. IBOs are highly motivated, selling to people they know or meet. The personal contact and care that they provide is an important element in direct selling. IBOs are self-employed and can introduce others to the business, and so form their own sales network. This case study illustrates how Amway, after analysing its business operations and performance, moved its business forward by choosing an appropriate marketing strategy. It demonstrates the connection between Amway’s own strategies and the defining matrix of strategies developed by Diversification’, published by the Harvard Business Review in 1957. Strategic analysis The process of strategic analysis helps an organisation to understand more about its strategic position and to construct answers to questions such as: 1. What is happening to our business environment? 2. What do we need to know about our markets and customers? 3. What new options should we consider? 4. How can we develop our competences to meet all of the changes in the business environment? By asking these questions of itself, a business looks to match its own objectives for growth and development with the reality of the business environment. Businesses need to be realistic. They must base decisions not upon wishful thinking...
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