Question

An in-depth Business level strategy analysis/ recommendations for the Amway Company.

Answer 1

Every company needs to plan a strategy to grow the business. This can be done through business level strategies. Business level strategies can be defined as to implement the strategies which includes the action for the customer gain, to stand in the competitive market and deal with the competitors

and to achieve the profits for particular product or services. Customers are the base of a company's business level strategies.

Let's discuss the few points of business strategy through Amway Company. Amway is an American Multi-level marketing company that sells health, beauty, and home care products. This company operates it's business more than 100 countries. No doubt it will need a multi level marketing strategy.

• Cost Leadership- Cost can be compared on the basis of economy of the country, technology, raw material used for the product, processing time and other charges. To stand in the market, Amway needs to keep the competitive lower prices for it's products. But while keeping the cost low, company should not compromise on the quality. If customers are getting good quality products with competitive lower cost which is lower than the other brands available in the market, definitely they will prefer to buy Amway's products. This will surely help Amway to increase it's sale. This strategy has to implement in a smarter way as this needs the quality and cost involved in it. Cost is one of the factor which directly affects on the profit percentage.
• Focus - In very few cases, Cost and focus strategies work together. Focus means targeting the right market or right group of customers. It means find out that area of market where competitors are less active or weak. we can focus on those area or group of customers located in that zone. This is to make sure that they will have the more availability of Amway's products compared to the other brands. This will help to capture the market and increase the sells.
• Differentiation - This is one of important and obvious business strategy. The product must be superior in quality compared to the other brands available in the market. This helps to attract the customers. Amway can invest some more cast to develop it's products in more superior way. They can increase the selling prices on the products this way to attain the profits.
• Do not avoid the small market/ consideration of small market zone - Company should not underestimate the small market zone. Amway needs to reach out those small market zone where these basic products are not available easily. Even though being the small market area, the requirements or demands generates from that area might be huge.
• Implementing low cost while differentiation - This is very popular and effective business strategy. This defines the products with superior quality and low prices. Amway can focus of developing the existing features in the products in a superior way at the same time offering a lower cost. This is definitely going to attract huge number of customer and it will also help to set a favourite brand by capturing whole area of the market. This strategy always works in company's behalf to set the reputation in the market and increase the numbers in sells.