- Published: September 13, 2022
- Updated: September 13, 2022
- University / College: Northwestern University
- Level: Secondary School
- Language: English
- Downloads: 15
Question 1
1. Explain how Amway is creating customer value and value for the organization through sustainable customer relationships.
Amway is one of the best performing companies around the globe. The company’s primary goal is to ensure that its clients get the right value from its products. In order to attain this goal, the company creates customer value through the following ways:
i. The company ensures that its products are satisfactory. This attracts the interest of customers and clients in the products and promotes the brand image. Customer retention and customer value are also realized.
ii. Constant research aimed at finding ways of improving the quality of Amway’s products and ensuring adherence to customers’ preferences is undertaken. The company does this through the over 500 active research employees it has employed.
iii. The company takes part in corporate responsibility programs (CSR) at an international level. This is a benefit to communities living within Amway’s business environment as they also gain from the company’s profits.
Question 2
2. Discuss whether Amway is serving the consumer, organizational or global market.
Amway services the customer and not a global market or organizations. Its concentration is on the customer and ensuring that his needs and demands are met. This is expressed in the company’s vision. From the case study presented, it is clear that Amway ensures that consumers benefit from its products by offering quality products and indirectly rewarding the clients through corporate social responsibility.
Question 3
3. Discuss briefly the product, pricing, promotion and distribution strategies of Amway.
Product
The company produces more than 450 products, which are sold in the international market. It concentrates on unique markets, such as health, beauty, nutrition, and home products.
Price
The company offers favorable and competitive prices to ensure that it cushions its clients against the high rates of inflation around the world.
Promotion
The company uses online platforms such as “ AMIVO” to promote its brand image internationally.
Distribution/place
The company has invested heavily in direct selling of its products. It has more than 3 million Independent Business Owners internationally.
