Strategy Importance in Business

Title
"The

Amway 's multi-level marketing strategy banned by the
Government of China. The marketing Strategy and challenges analyzed." Submitted by: Aziz Baghadia
Course: MBA Term2, Group: 1(Marketing)
Student Id: 099154 – 87
UWL Id: 29002133
Module: Marketing Project
Lecturer name: Richard Small
College name: College of Technology London
University name: University of Wales Lampeter

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Table of Contents

Page No.

Executive Summary

3

Aim of Project

4

Introduction

4

Hypothesis of Project

6

Research Methodology

7

Discussion on Proposed Hypothesis and their Analysis with help of

8

secondary data - Literature Review

Conclusion

11

References

12

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EXECUTIVE SUMMARY

In this project report, it is shown that how multi-level marketing company "Amway" needed to revised its pyramid business model to satisfy and overcome barrier enforced by the
Government of China. First of all the concept of multi-level marketing and organisational background are explained. The difficulties faced by Amway after the ban by China government on multi-level marketing and how the organisation cope up with that difficult situation is mentioned in this report. Two hypotheses are laid down and tested as well. This report shows that multilevel marketing strategy is inefficient, revising marketing strategy for big organisations is very risky and Amway China is able to make profit despite of reiterating their independent sales techniques.

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AIM OF PROJECT

How the multi-level marketing company "Amway" needed to revise its pyramid business model to satisfy and overcome barrier enforced by the Government of China

INTRODUCTION
This report is based on the failure of multi-level marketing strategy used by a well known company Amway in China. Amway Corp. is a multimillionaire dollar company today and its reason for being so successful in many countries is its multi-level marketing

References: – Why it is a Scam, 2010). join company encourage participating more to earn more money. (Understanding MLM Companies, 2007) MLM companies want to sell their product in markets and they know that 4) Compressed Plans: According to Brian Garvin (2008), this plan really helps to distributor to make some money although it pays less than other plans large down line also can make some money and more safe and fair minded than other plans for distributors ( A Review of Multilevel Marketing Compensation Plan, 2008) Malaysia. Amway believes in Multi-level Marketing Strategy (The failure of AMWAY Corp 's marketing strategy in China, 2006) meetings scare Chinese officials of possible uprisings and social chaos (Katie Do., 1999) and due to this Officials ban on multilevel marketing in China which helps to proposed first