Business Overview of Amway - Essay Example

Module Business Overview of Amway INTRODUCTION Amway is a multinational company with its roots in the United s. The companyis widely known for its direct selling of products and services through a wide range of marketing techniques. The company primarily deals in health, beauty and home care products. The company was formed in early 1959 by Richard Devos and Jay Van Andel. It sells products in over a hundred countries through its affiliated companies. It has extended its product and services range to sell air purifiers, jewelry, electronics and personal care products. This has been a prudent approach in business as it has enhanced its performance all over the world (Jones 23). Apparently, the company has been recording a positive growth over the last seven years. In the recent reported sales, it was declared that the company made sales amounting to over 11 billion USD. This shows that it is a company that is on the helm of attaining greater performance. According to Forbes, the company was ranked as one of the largest private companies in the United States clinching number 25 in 2012. Similarly, Deloitte ranked it number 114 among the largest global retailers in the year 2006. Market Advantages. Amway is a company that has been appreciating a larger market share with each passing year. This poses an advantage to the company as it accrues greater sales. This is a market advantage for the company as it increases its sales (Deangelo 12). Due to globalization, the company has spread its company affiliations in many other countries. This is an added advantage as it gets greater demand for its products. For instance, the company has spread its market share in over 100 countries and territories in the world. This creates a substantial demand for its products since there are many people that will create a demand for the products in all these countries. Similarly, the approach of using other companies to sell its products has been to the advantage, since it has many retailers and outlets (LLC Books 13). This creates a large supply chain of the products all over the market. As such, the company continues to make greater sales, which is an advantage over other retailers in the market. Amway is a company that has substantial amounts of capital for investments, mergers and takeovers. As such, it has the resources that are needed to extend its market share. This has made it possible for the company to make international expansion. This poses an advantage to the company as it increases the demand market for its products. When there is sufficient capital, the business makes initiatives of investing in providing other products that enhance its performance. Similarly, the company has a vital resource which is labor (Jones 32). It has more than 20, 000 employees who are vital in fostering development. With such a large number of employees, the company is likely to make a positive accrual in its business. This is due to the efficient and sufficient labor that is available. This states the reason why the business has been marking an improving in a seven year streak. Amway is headed by a competent management team. The performance of a company is dependent on the management team. Therefore, a company that has a competent management team is likely to make greater performance in the market. This is one of the strategies that are used by Amway (LLC Books 11). Through the leadership of Andel and Devos, the company has been able to incorporate a perfect management team that deals with its operations. As such, the company has been making positive performance and an improvement over time. Similarly, it has its headquarters in Michigan, which is a strategic place. This makes operations easier as the company focuses more on making an improvement. Branding. A business is determined by the performance of its brands in the market. Strong brands in the market reflect a positive accrual to a business as they attract a larger market niche. To begin with, Amway has a number of well performing brands in the market. The worldwide brands are proving positivity as the company continues to make progress. Some of the most popular brands sold by the company include Nutrilite, Artistry, XS and legacy clean (Jones 35). Similarly, the company savors gift cards that are made by ribbon. With such brands in the market, the company is sure of making an impressive performance as compared to other companies in the market. The brands have been making a remarkable impact in many places across the world. In recent times, it has been declared that the company is manufacturing over 450 products with the brand names of the company. This has attracted a larger market niche since the market is familiar with the products that are manufactured by the company (LLC Books 5). To make this an easy task, the company has initiated various maneuvers. First, it has initiated manufacturing facilities in the most enhanced markets in the world which include the United States, china and India (Jones 45). Secondly, it has organic firms that produce Nutrilite in Brazil, Mexico and in the United States, which are situated in Washington and California (Deangelo 12). The widespread production is an advantage to the company as it saves on costs of production and transportation. The corporation requires fewer resources in transporting the products to the market. In addition to this, the company provides sufficient and constant supply of products to the customers. Therefore, it has cemented its relationship with the customers as they are able to access the products at any time. In fact, with such a maneuver, the prices of the products are maintained since there are lower costs of production. Social Media Marketing. In these days, many businesses are trying to be creative in order to attract a larger demand for its products. This has been an influential approach which many businesses have incorporated. Amway is one of the companies that have incorporated social marketing as one of the strategies of increasing sales. First, the company has a number of blogs which are influential in attracting a larger market niche. For instance, it has Amway connections which is a blog that expounds on its activities. This is influential as it keeps the market informed about all the activities of the firm (LLC Books 10). Secondly, it has the achieve magazine. This is a magazine that exposes on the strategies and avenues of making it big in business. While it attracts the attention of readers, the magazine also poses an advantage as it markets the products of the company. In addition to this, the company has initiated the Amway insider and Amway one by one. These are vital in exposing and marketing the company to other geographical regions. In making this a prudent marketing technique, the company has also initiated the amway.net, which is a marketing avenue. There are other various ways which are used to market the Amway Company in the social media. Amway has developed various avenues which are deemed to attract a demand market over social media (Jones 154). First, it connects with its customers over Facebook. This is a worldwide social network that is influential. Therefore, the company is likely to make sales of its products through connection with customers over Facebook. The second avenue is using twitter. This is creates a larger demand for its products as the company meets massive number of people that are in need of the product. Similarly, the company has incorporated the use of YouTube and Google +. In conclusion, Amway has been influential in the world as one of the largest retailers. It has developed its market share by initiating businesses in many countries across the globe. This has been successful as the company has recorded a growth in its business all over the world. It has gained a competitive advantage over its competitors as it increases its market share. Similarly, it has great bargaining power with its suppliers and buyers. As such, it provides services and products at acceptable prices, which creates a surge in its sales. Therefore, the company as a whole has been instrumental in steering its success. Other companies that emulate this strategy have also been recording positive performance. Works Cited Deangelo Lee. Is Amway a Multi-Level Marketing Business or a Pyramid Scheme? New York: BiblioBazaar, 2011. Print. Jones A. Kathryn. Amway Forever: The Amazing Story of a Global Business Phenomenon. New York: John Wiley & Sons, 2011. Print. LLC Books. Amway. New York: General Books LLC, 2010. Print. Read More