SWOT Analysis of Amway [step by step Detailed SWOT]

SWOT Analysis of Amway focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors that influence the SWOT Analysis of Amway.

swot analysis of amway
[Logo of Amway is the Registered Trademark of its Respective Owner]

Amway is one of the most famous companies with a great tale of multilevel marketing (MLM). Jay Van Andel and Richard Devos are the two founders of Amway. Amway is the only business that is praised for its fairness and its outstanding practices in the field of multi-level marketing. Amway was established in the US, but it is a multi-national business with several different types of products and different lines and lengths of products. The business of Amway has total revenue of $8.4 billion for the year 2019 and is steadily rising.

Strengths in the SWOT Analysis of Amway – Amway SWOT Analysis

  • Wide Global Presence: With over 3 million company owners/agents, Amway is active in over 80 countries. This shows that Amway does not rely heavily on a single sector.
  • Amway has won many honors: Amway has a long list of awards such as the Year Award for Asia Pacific Frost & Sullivan Filtration Company, LEED gold certification, etc.
  • Wide range of customers: The product line of Amway caters to a wide range of customers, from babies to the elderly.
  • Employee Base: Amway has an employee base of 16000+ employees. Amway is providing training and doing a lot of expenditure on its research and development for its products.
  • A broad range of products: Amway sells about 115 products in 5 categories, including personal care, home care, diet and wellbeing, cosmetics and gift catalogs. Some of the products which are very famous are Glister, Amway Home, Nutrilite, G&H, AmwayQueen, Artistry, Atmosphere, eSpring, and XS Energy.
  • Financial condition: Amway is in an extremely strong financial position
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Weaknesses in the SWOT Analysis of Amway – Amway SWOT Analysis

  • Restricted availability mode: Amway goods are only available through direct sellers or online sellers of company owners/agents. This lowers the market share of Amway.
  • Expensive products: Amway products are relatively expensive and the target market is thus confined to the luxury category.
  • Falling revenues: In the past two years, Amway’s sales have fallen. In its 2019 revenue, Amway announced a decrease in its revenue. Revenue in 2018 was 8.8 Billion US Dollars and in 2019 it was 8.4 Billion US Dollars.
  • Advertising Policy: Amway does not advertise on TV or through a brand ambassador and is thus completely dependent on word of mouth ads.
  • Multi-level marketing: MLM is often known to be a risky business and when a top player leaves or causes some other problem, the chain can collapse at any moment.
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Opportunities in the SWOT Analysis of Amway – Amway SWOT Analysis

  • Increasing availability: Amway can improve the availability of its products and broaden its customer base by seeking more tools.
  • Amway can take customer feedback to analyze its weakness and convert these weaknesses into strengths.
  • Tie-ups with salons and health experts: the possibility of linking up with salons, beauty experts, and health experts should also be explored by Amway.
  • Usage of various communication modes: Amway can also look to invest in communication and explore opportunities for foreign ads, such as digital marketing.
  • Amway can monitor its MLM business through some good business analytics tools to reach and target customers based on analytics.

Threats in the SWOT Analysis of Amway – Amway SWOT Analysis

  • Costs: The rising technology and raw material costs will also pose a potential threat.
  • Increasing rivalry: Amway is faced both nationally and globally with intense competition, which prevents it from increasing its market share.
  • New Entrants: New Entrants can be a major threat.
  • Low Switching Cost: Because of the market abundance of similar goods and the advent of e-commerce, switching costs are very low, thus reducing brand loyalty.
  • Government Restrictions: Government rules and regulations can also affect the business of Amway.

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