SWOT Analysis of Amway

One of the most popular companies which has a fantastic multi level marketing history is Amway. Besides tupperware, Amway is the only company which is lauded for its fairness and its super operations where Multi level marketing is concerned. Amway originates from US but is a multi national company which many different category of products and various product lines and lengths. The company has a whopping revenue of $10 billion dollars and is growing steadily.

Strengths in the SWOT Analysis of Amway :

Strong Global Presence: Amway is present in over 80 countries with over 3 million business owners/agents. This shows that Amway is not overly dependent on a single market.

Amway has received many accolades: Amway has a long list of awards like Asia Pacific Frost & Sullivan Filtration company of the year Award, LEED gold certification etc.

Wide Product range: Amway offers about 115 products in 5 different categories, personal care, home care, nutrition and wellness, cosmetics and gift catalogue.

Wide Range of consumers: Amway’s product portfolio caters to a wide range of consumers from babies to elders.Although, women are the main consumers of Amway products.

Weaknesses in the SWOT Analysis of Amway :

Limited mode of availability: Amway products are only available through business owners/agents who are the direct sellers or online selling. This reduces Amway’s market share.

Falling sales: Amway’s sales have dropped in the previous two years. Amway reported a decline of 7 per cent in its sales in 2016.

Costly Products: Amway products are relatively costly and thus the target market is limited to the premium segment.

Heavily dependent on word of mouth: Amway does not advertise on TV or through a brand ambassador and hence is totally dependent on word of mouth publicity.

Multi level marketing: MLM is always considered to be a risky business and the chain can collapse at any time when a top player leaves or creates any other issue.

Opportunites in the SWOT Analysis of Amway :

Increasing availability: Amway should increase the availability of its products and should explore more mediums to expand its customer base.

Using different modes of communication: Amway should also look to invest in communication and should explore options such as digital marketing to advertising internationally.

Tie-ups with salons and health experts: Amway should also explore the option of tying up with salons, beauty experts and health experts.

Threats in the SWOT Analysis of Amway :

Increasing competition: Amway is facing intense competition nationally as well as internationally which stops it from increasing its market share.

Low Switching Cost: Due to the availability of similar products in the market and the emergence of E-commerce, switching cost is very low and thus brand loyalty reduces.