What is Amway?
History of Amway.
Center of Amway.
Global markets of Amway.
Products of Amway in India.
Hierarchy of Amway in India.
Budget study of Amway in India.
Objective of Amway.
Goal setting of Amway.
Vision and values of Amway.
Type : Private.
Industry : Direct Selling.
Founded : 1959.
Founders : Rich Devos.
Jay Van Andel.
Head quarters : Ada, Michigan, United States.
Area Served : Worldwide
Key people : Steve Van Andel (Chairman)
Doug DeVos (President)
What is Amway:
What does the word Amway mean? Amway is an
abbreviation for "American Way “and was coined
in 1959 by company founders, Jay Van Andel and
Richard Devos. Short, unique and easy to
remember, Amway has been registered as a
corporate name and trademark ever since. In the
following decades, Amway Corporation
successfully established itself as a leading
multilevel marketing business, built on strong
values and founding principles that continue to
sustain our company today. The business is built
on the simple integrity of helping people lead
better lives. Today, Amway is a multibillion-dollar
international business representing freedom and
opportunity to millions of people in more than 88
countries and territories around the world. Amway
offer over 3 million Business Owners the
inspiration to grow those businesses, and to work
hard to provide new and better ways for them to
achieve their life goals.
Amway is a direct selling company that
uses multilevel marketing to sell a variety of
products, primarily in the health, beauty, and home
care markets. Amway was founded in 1959 by Jay
Van Andel and Richard Devos. Based in Ada,
Michigan, the company and family of companies
under Alticor reported sales growth of 9.5%,
reaching US$9.2 billion for the year ending
December 31, 2010. Its product lines include home
care products, personal care products, jewellery,
electronics, Nutrilite dietary supplements, water
purifiers, air purifiers, insurance and cosmetics. In
2004, health and beauty products accounted for
nearly 60% of worldwide sales.
Amway conducts business
through a number of affiliated
companies in more than a
hundred countries and
territories around the
world.Amway was ranked
No.114 among the largest
global retailers by Deloitte in
2006,and No.32 among the largest private
companies in the U.S. by Forbes in 2010.
Amway is a business that operates on the basis of
pyramid selling. It is described as a multi-level
marketing scheme in which there are different
levels of sellers. The company originated in
Michigan, and sales of its products hit six billion
US dollars (USD) in 2005.
Products sold by Amway agents range from
jewellery to cosmetics and health care. Amway
also has product lines including dietary
supplements and home care goods. Amway's
sellers are called Independent Business Owners
(IBO), and they are a link in a long chain that
makes up the company.Amway works by
assigning a Points Value (PV) to each of its
products. The PV amount of each product
determines how much commission the seller
makes from the sale. The PV of a given good is the
same regardless of the country it is sold in. The PV
can be thought of as a common Amway currency
used around the world.
Rich Devos and Jay Van Andel initially founded
the Ja-Ri Corporation, a multi-level marketing
distributorship for Nutrilite
products, in 1949. Ja-Ri was
incorporated in 1959, and
changed its name to
"Amway" in 1963. As of
2007, Amway operates in
more than 80 countries
around the world. In 1999,
the founders of the Amway Corporation launched
a sister Internet-based Company named Quixtar.
The Alticor Corporation owns Amway and
Quixtar, plus several other concerns. Quixtar
replaced the North American business of Amway
in 2001 after the majority of the distributors
moved to Quixtar, with Amway operating in the
rest of the world.
Amway expanded overseas to Australia in 1971, to
Europe in 1973, to parts
of Asia in 1974, to Japan
in 1979, to Latin
America in 1985, to
China in 1995, to Africa
in 1997, to India and
Scandinavia in 1998, to
Russia in 2005, and to Vietnam in 2008.Based on
rapid international expansion, strong family
leadership, and good financial condition, Amway
remained a strong force in the 1990s. When Van
Andel and devos, whose children had begun in the
business in the mid-1970s, retired from the
company in the early 1990s, all eight of the Van
Andel and devos children were in leadership
positions. Dick devos was named president in
1992, and Steve Van Andel was appointed
company chairman. Jay Van Andel planned to
remain active with the company as senior
chairman and member of the policy board.
In 1999 the founders of the Amway Corporation
established a new holding company,
named Alticor, and
launched three new
companies: a sister (and
named Quixtar, Access
Business Group, and
Pyxis Innovations. Pyxis, later replaced by Fulton
Innovation, pursued research and development
and Access Business Group handled
manufacturing and logistics for Amway, Quixtar,
and third party clients.
In September 1999, the company
established a new company named Quixtar to sell
consumer products on the Internet. With Quixtar,
Amway used the same marketing concept as it did
in its traditional business: distributors purchased
products at volume discounts and earned
commissions on the sales and bonuses from the
sales of new recruits. Apart from Quixtar's
business being conducted electronically, the
greatest difference between Amway and its new
company was the conspicuous absence of the
Center of Amway:
Amway Center is one of the most technologically
advanced venues in the world. Inside the building,
a unique center hung
Dakota, is the tallest
in any NBA venue. It
maximizes creative programming options by using
high resolution, 6mm-pixel technology on each of
the 18 displays, including two digital ring displays
and four tapered corners. Additional displays
include approximately 2,100 feet (640 m) of
digital ribbon boards, the largest of which is a 360-
degree, 1,100 feet (340 m) display surrounding the
entire seating bowl.
The brand new Amway Center sports and
entertainment complex in Orlando, Florida, U.S.,
home to the National Basketball Association’s
(NBA) Orlando Magic, opened with a ceremonial
ribbon-cutting ceremony on Friday, October 1.
Amway is the official naming rights sponsor of the
Amway Center. The Amway Center is a high-
visibility, world-class facility that proudly displays
the Amway name on the building’s exterior, the
roof, and throughout the complex, including on the
tallest, HD (high definition) scoreboard in an NBA
venue, measuring 42 feet by 41 feet by 41 feet. In
addition, the new Nutrilite Magic Fan Experience
Center inside offers visitors an on-site introduction
to best-selling brand.
The company operates in over
80 countries and territories,
organized into regional markets:
the Americas, Europe, greater
China, Japan and Korea, and SE
In 2008, Alticor announced that two-thirds of the
company's 58 markets reported sales increases,
including strong growth in the China, Russia and
Amway in Australia:
Amway in China:
Amway in India:
Amway in UK:
Amway in Australia:
Amway Australia began in 1971, and was the first
affiliate to open outside North America
(the US and Canada). From 1993 to 1999 Amway
Australia was listed on the Hong Kong, Australian
and New York stock exchanges as part of Amway
Asia Pacific Limited. Amway Australia opened in
April 1971 and was Amway's first market outside
of North America.The company launched quickly,
registering more than 400 distributors in its first
month of operation. By 1993, wholesale sales had
Amway in China:
Amway grew quickly in China from its market
launch in 1995. In 1998, after abuses of
illegal pyramid schemes led to riots, the Chinese
government enacted a ban on all direct
sellingcompanies, including Amway.
In 2006, Amway China had a reported 180,000
sales representatives, 140 stores, and $2 billion in
annual sales. In 2007 Amway Greater China and
South-east Asia Chief Executive Eva Cheng was
ranked No.88 by Forbes magazine in its list of the
World's Most Powerful Women.In 2008, China
was Amway's largest market, reporting 28%
growth and sales of ¥17 billion (US$2.5billion).
Amway in UK:
Amway (UK) Limited was established in 1973 and
was one of the first affiliates to be launched
worldwide, and the first in Europe. The
administrative headquarters are based in Milton
Keynes, Buckinghamshire and provide a support
mechanism for Independent Business Owners
within the UK, Republic of Ireland and the
Amway in India:
Amway India, a wholly owned subsidiary of
Amway Corporation, was established in August
1995 after approval by India's Foreign Investment
Promotion Board (FIPB). Amway India
commenced commercial operations on May 5,
1998 and is now the largest Direct Selling FMCG
Company. The Company is headquartered at the
National Capital Region of India - New
Delhi.Amway India has 400 full time employees
and has generated indirect employment for 1,650
persons at all the contract manufacturer locations.
Amway India provides free and unlimited training
to all its distributors to help them grow their
business. Amway India conducted over 34,000
training sessions during in the past 12-months with
an attendance of over 1.5 million Amway Business
Owners and prospects.
Products of Amway in India:
Amway's product line grew from LOC, with the
laundry detergent SA8 added in 1960, and later the
hair care product
Satinique (1965) and the
line Artistry (1968).
manufactures over 450
manufacturing facilities in China, India and the
United States, as well as Nutrilite organic farms
in Brazil, Mexico and the United States (California
and Washington State).
Amway is best known in North America for its
original multi-purpose cleaning product
LOC, SA8 laundry detergent, and Dish Drops
dishwashing liquid. In the January 2007 issue
ofConsumer Reports, SA8 with Bpio quest was
rated the best-performing laundry detergent,
scoring 99 out of a possible 100 points.
Amway's health and beauty brands
include Artistry, Beauty cycle, Time Defiance,
Artistry Essentials, Pure White, Satinique,
Amway's Artistry products include skin care,
cosmetics, and anti-aging creams and serums.
Amway's largest selling brand is theNutrilite range
of health supplements (marketed as Nutriway in
some countries), and in 2008 Nutrilite sales
exceeded US$3billion globally. In 2001, five
Nutrilite products were the first dietary supplement
to be certified by NSF International.
Amway's eSpring water filter, introduced in 2000,
was the first home water treatment system to
incorporate a carbon block filter and Ultraviolet
disinfection unit,. In 2006 eSpring was
namedProduct of the Year by the Poland-based
non-profit World Foundation of Health, Heart and
Mind. eSpring has won numerousGold
andPlatinumawards in the Reader's Digest Most
Trusted Brand Asia surveys.
In 2008 Amway's Atmosphere Air Purifier became
the first air cleaner certified Asthma and Allergy
Friendly by the Asthma and Allergy Foundation of
Budget study of Amway in India:
Amway India, the largest direct selling FMCG
company of India and a wholly owned subsidiary
of Amway Corporation, has clocked a turnover of
Rs 2130 crores for the fiscal year 2011 thus
registering a growth of 19% over the previous
fiscal when it recorded a turnover ofRs 1790
crores. Amway India now ranks among the top
FMCG Companies in India - a feat achieved in a
span of thirteen years. From a turnover of 99
crores back in 1998 to the robust turnover of Rs
2130 crores - Amway India has grown twenty
times. The company aims to cross the Rs 2500
crore mark in 2012.
Announcing the annual turnover, Mr. William S
Pinckney, MD & CEO, Amway India said, "The
double digit growth for the last four years is
buoyed by the launch of world class superior
quality products in the lead categories of Health &
Beauty, increased consumer access strategy
coupled with experiential marketing & brand
awareness, penetration of products in semi urban
and rural markets of the state and the tremendous
effort put by the distributors.
Amway India, the Indian arm of Amway
Corporation, will invest Rs 400 crore in India in
the next two years on a manufacturing facility
and for its headquarters in Delhi.
Targeting an annual turnover of Rs 2,500 crore by
2012, Amway India today said it would set up
another manufacturing facility in the country.
Objective of Amway:
Objective of the study is to understand the
Amway’s operations in international marketing
with respect to PESTLE analysis, SWOT analysis,
Marketing Mix (Product, Price, Place, Promotion,
Packaging and People) and also we have compared
its operation domestically and internationally. To
understand the former part, the company have
visited Amway India and gathered appropriate
information with regards to project.
Goal setting ideally involves establishing specific,
measurable, attainable, realistic and time-targeted
objectives. Work on the goal-setting theory
suggests that it can serve as an effective tool for
making progress by ensuring that participants have
a clear awareness of what they must do to achieve
or help achieve an objective.
Short-term goals expect accomplishment in a short
period of time, such as trying to get a bill paid in
the next few days. The definition of a short-term
goal need not relate to any specific length of time.
In other words, one may achieve (or fail to
achieve) a short-term goal in a day, week, month,
year, etc. The time-frame for a short-term goal
relates to its context in the overall time line that it
is being applied to.
Individuals can set personal goals. A student may
set a goal of a high mark in an exam. An athlete
might run five miles a day. A traveller might try to
reach a destination-city within three hours.
Financial goals are a common example, to save for
retirement or to save for a purchase.Managing
goals can give returns in all areas of personal life.
Goal setting and planning ("goal work") promotes
long-term vision and short-term motivation. It
focuses intention, desire, acquisition of
knowledge, and helps to organize
resources.Efficient goal work includes recognizing
and resolving all guilt, inner conflict or limiting
belief that might cause one to sabotage one's
efforts. By setting clearly defined goals, one can
subsequently measure and take spride in the
achievement of those goals. One can see progress
in what might have seemed a long, perhaps
Vision and Values :
The company’s vision is quite simple. Work each and
every day to help people live better lives. Achieve
company’s vision by helping people everywhere
discover their potential and achieve their goals by
offering better brands and opportunities for the
future, and by sharing generously with the global
community. To realize the vision, there are six
enduring values that the business has been built on.
Amway is built on the concept of partnership
between the founders. The partnership that exists
among the founding families, employees, and
business owners is our most prized possession. We
always try to do what is in the long-term best
interest of our partners, in a manner that increases
trust and confidence.
Integrity is essential to our business success. We do
what is right, not just whatever "works." Amway’s
success is measured not only in economic terms,
but by the respect, trust and credibility we earn.
It also acknowledge the uniqueness created in each
individual. Every person is worthy of respect, and
deserves fair treatment and the opportunity to
succeed to the fullest extent of his or her potential.
They are builders and encouragers. They strive for
excellence in all they do. Their focus is on
continuous improvement, progress and
achievement of individual and group goals. They
anticipate change, respond swiftly to it, take action
to get the job done, and gain from our experiences.
We encourage creativity and innovation.
Each individual is responsible and accountable for
achieving personal goals, as well as giving 100
percent effort in helping achieve corporate or team
goals. By helping people help themselves, we
further the potential for individual and shared
success. They also have a responsibility to be good
citizens in the communities where we live and
They are proud advocates of freedom and free
enterprise. Human economic advancement is
clearly proven to be best achieved in a free market
Canadian tax case
In 1983, Amway pleaded guilty to criminal tax
evasion and customs fraud in Canada, resulting in
a fine of $25 million CAD, the largest fine ever
imposed in Canada at the time. In 1989 the
company settled the outstanding customs duties for
$45 million CAD. In a 1994 interview, Amway co-
founder Rich DeVos stated that this incident had
been his greatest "moral or spiritual challenge",
first in "soul searching as to whether they had done
anything wrong" and then for pleading guilty for
technical reasons, despite believing they were
innocent of the charges. DeVos stated he believed
that the case had been motivated by "political