安利失败原因分析.doc

The failure of AMWAY Corp’s marketing strategy in China 3 mai 2006 WHAT IS AMWAY?? Amway Corporation was founded in 1959 in Ada, Michigan, USA, by two entrepreneurs. In their first full year of business, Amway’s sales were more than half a million dollars. Their concept for an innovative business opportunity, centered around person-to-person marketing, established itself as a leader among one of today’s fastest-growing industries. Today, more than 3.6 million independent business owners distribute Amway products in more than 80 countries and territories. Indeed, the Amway Business can be found in Americas, Europe, South Africa, Greater China, Korea and South East Australasia. Amway offers a complete range of products for home care, laundry care, personal care, skin care and cosmetics, nutritional supplements, hometech and fragrances. ANALYSIS OF THE SLEPT FACTORS?: Market entry barriers are critical factors that influence entry decisions and a firm’s performance. In the course of international expansion, a firm encounters new factors such as new government regulations, new legal and financial systems, new cultures, new languages, greater distances, new modes of transportation, currency exchange rates and their vagaries. The environmental influences on international marketing that Amway must consider?: ??Economic?: Fuelled by foreign direct investments, China’s economy is beginning to dominate the Asian economic landscape. Indeed, China springs past tiger nations. It has had positive GDP growth in the last five years, while other Asian economies have stalled. China’s economy is growing at a rate of about 8 percent, the fastest in Asia. It means that this country is certainly profitable. But Amway must ask itself if the market demand is important and if it will be competitive. Indeed, China is an emerging economy but a dual economy too, with a wealthy urban professional and a poor country people. The gap between rich and poor has grown almost as fast as overall inc