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Amway Case Study Analysis

Question

Task: State the importance of Amway case study and analyze its internal and external environment.

Answer

Introduction
Amway is considered as one of the number one direct selling businesses in the world. The company was established in the year 1959 by Jay Van Andel and Richard DeVos in Michigan. The company is into selling and manufacturing consumer products to promote health and well-being of all the people. It has been providing career opportunities services as well. The company has been collaborating with other business houses in order to sell their products. The present paper, Amway case study analysis will indulge in internal and external environment of the company. The internal analysis will be explained in the form of SWOT analysis and external analysis will be explained with the help of PESTLE framework. Basis the SWOT and the PESTLE analysis certain recommendations have been included in the paper which can help the company to perform well in any country or state. The paper will also discuss how Totalassignmenthelp.com can play a helping role in answering any academic assignment related to Amway case study.

Amway case study

Amway is considered as one of the number one direct selling businesses in the world. The company was established in the year 1959 by Jay Van Andel and Richard DeVos in Michigan. The company is into selling and manufacturing consumer products to promote health and well-being of all the people. It has been providing career opportunities services as well. The company has been collaborating with other business houses in order to sell their products. The present paper, Amway case study analysis will indulge in internal and external environment of the company. The internal analysis will be explained in the form of SWOT analysis and external analysis will be explained with the help of PESTLE framework. Basis the SWOT and the PESTLE analysis certain recommendations have been included in the paper which can help the company to perform well in any country or state. The paper will also discuss how Totalassignmenthelp.com can play a helping role in answering any academic assignment related to Amway case study.

When a student has received an assignment wherein he is required to analyze the internal and external environment of a company, be it Amway, he or she cannot sit back and think about the answer due to strict deadline. The student can always approach Totalassignmenthelp.com for writing their assignments. Our writers have a thorough knowledge about the company as well as its functioning. When the brand is huge, writing a case study becomes tough. The writing not only involves the analysis but gathering the required information about the company. The information’s gathered needs to be segregated in order to chuck out the irrelevant content which can draw the attention of the professor.

Why it is necessary to know about the Amway case study?
Amway stands for the American way. The company is into direct selling and thereby eliminating any interference from mediators. Amway was considered as one of the company delivering expensive products which affected its sale. The prices of its products were kept higher which discouraged the lower income groups from buying the products (Sethi, 2014). But the team realized the drawback and worked on it by revaluing all its products. It was also seen that the company had no stores wherein its customers could directly buy the products which was a question on its marketing and distributing strategy. But the company addressed all its drawbacks and came out as one of the leading direct selling business house. Every other company needs to evaluate the success story of the company in order to mitigate their challenges. Amway case study is an ideal study about meeting challenges and improvements.

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When a student gets admitted in business management or pursues a course in marketing, he is made to write a number of assignments, majority of them being case studies. Writing assignment not only tests the knowledge of the student but it also helps the student to pass a particular semester. Achieving higher grades is the basic motive behind writing assignments. The experts of Totalassigmenthelp.com will serve you with one of the quality assignments which will fetch higher grade in your Amway case study assignment.

In order to write the SWOT analysis and PESTLE analysis to solve the Amway case study, it is necessary to understand different aspects of the company. All the aspects need to be addressed individually in order to provide an accurate analysis. Finding through different sources in order to get a clear picture about the strength and weakness of a company may be tiresome so it is better to take help from a qualified assignment writing service. Totalassignmenthelp.com is one of the best assignment provider’s in the field of assignment help online. The assignments are written after conducting an extensive research.

Conducting the SWOT analysis of Amway
SWOT is made up of strength, weakness, opportunity and threat and analyzing these factors helps the company to address its internal concerns and to assess its competitiveness in the market. Conducting a SWOT analysis is necessary for each and every company be it an established company, a company looking into expansion or a start-up.

Amway case study

Source:
( Rahman, Salleh, Najib and Lun, 2016)

Strength

  • Every product of Amway is focused individually.
  • It consists of 3 million distributors selling its products in 80 countries which signify its hold in different markets.
  • Amway manufactures different consumer goods including personal care, home care, cosmetics, health and wellness and gifts (Jingmeng, Yueqiu, Yang and Hongtao, 2014).
  • The company has acquired different awards for its quality services.
  • Amway has various production units all over the world making a quick supply whenever required.

Weakness

  • Unavailability of products in the retail market and the consumers are to contact specific distributors.
  • The company does not practice usual advertising methods so the awareness about the products is less as compared to other brands.
  • Expensive product range.
  • In 2016 the company reported fewer sales.
  • If a distributor leaves the company then it creates a loss of customer base (Srilekha and Rao, 2016)

Opportunity

  • The company should look into increasing its products availability and approach new customers
  • Amway should upgrade its marketing techniques
  • The company should collaborate with different beauty and wellness salons and experts.
  • Collaborating with different e-commerce websites will help in increasing customer base.

Threat

  • Increased competition in the form of similar products
  • Customers switching the brand due to high priced products (Sethi, 2014)
  • No formal agreements with the distributors to stop then form leaving
  • Local products having the same ingredients
  • Lower switching costs

The SWOT analysis conducted above has a generalized overview about the company taking into consideration the overall functioning of the company. There may be requirements which can ask the student to focus on a specific market or country in the Amway case study assignment. In such situation, the SWOT analysis will be conducted specifically and not generic.

PESTLE analysis conducted under Amway case study
The PESTLE framework helps a company to note down the factors that is affecting its work externally. PESTLE is made up of political, economic, social, technological, legal and environmental. It also helps to look at a specific country or market from different angles in order to understand the growth opportunities (Rastogi and Trivedi, 2016).

Amway case study

Source:
( Rahman, Salleh, Najib and Lun, 2016)

Political

  • Allowances provided by the government
  • Understanding the production base
  • Changes made by the government in its policies
  • Role of local government
  • Rules and regulations
  • Political stability

Economic

  • Fiscal and monetary policies
  • Spending’s made by the government
  • Income of the household
  • Inflation and deflation rate
  • Growth of the economy
  • Pricing in local and international market
  • Local production

Social

  • The attitude of the company and the people
  • Support in terms of finance and humane
  • Understanding the contract between government and society
  • Population of the genders
  • Health standard maintained by the people

Technological

  • Setting up research and development department
  • Developing products based on feedback
  • Empowering the supply chain partners
  • Easy payment methods

Environmental

  • Type of weather prevailing
  • Change in the climatic conditions
  • Governments efforts to control pollution
  • Endangering any specie

Legal

  • Laws related to intellectual property and data protection
  • Fair treatment of all employees
  • Following the health and safety laws
  • Maintaining quality and affordable prices

The above points are some general information’s which should be considered by Amway to maximize its benefits and minimize its losses.

Recommendations basis the analysis
Although the analysis made previously is based upon some generic facts but still certain recommendations can be pointed out which are as follows:

  • The pricing of the products needs to be regulated in order to meet the needs of marginal group of people (Sethi, 2014)
  • The membership policy needs to be amended in order to attract more people
  • Profits made by the company needs to be divided as per the efforts put in by each of the members
  • Revamping the marketing strategies in order to attract more customers and make them aware about each and every product through a reachable platform
  • Addressing the concerns of the users by making new innovations and introducing new products
  • The company needs to tie up with different retail markets for better and quick service
  • Making products as per climatic conditions prevailing in the country or the state where the company is looking for expansion

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Our writers are available to help the students with any assignment related to Amway case study. Be it improving the internal functioning or external functioning, our writers can provide analysis of all companies. Conducting the SWOT analysis and the PESTLE analysis for any company be it Amway, is not easy. So it’s better to take help from our experts in order to solve the Amway case study assignment. The assignment help provided by Totalassignmenthelp.com includes the below points:

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Reference List
Jingmeng, S., Yueqiu, H., Yang, W and Hongtao, Y. (2014) Research on health promotion of pharmaceutical companies: A case analysis of Amway Nutrilite health run. Journal of Chemical and Pharmaceutical Research, 6(4), pp. 457-460.

Rahman, N.S.F.A., Salleh, N.H.M., Najib, A.F.A and Lun, V. (2016) A descriptive method for analyzing the Kra Canal decision on maritime business patterns in Malaysia. Journal of Shipping and Trade, 1. Retrieved from: https://www.researchgate.net/publication/310590191_A_descriptive_method_for_analysing_the_Kra_Canal_decision_on_maritime_business_patterns_in_Malaysia

Rastogi, N and Trivedi, M.K. (2016) PESTLE Technique- A tool to identify external analysis. International Research Journal of Engineering and Technology, 3(1).

Sethi, R. (2014) Study of direct selling with reference to Amway. Int J Economics & Management, 1(1), pp. 14-20.

Srilekha, V and Rao, U.S. (2016) Distributor motivations in joining network marketing company, Amway case study. Imperial Journal of Interdisciplinary Research, 2(11).


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