CASE B-6: AMWAY INDIA

Assignment Presented to
Dr. G. N. Braithwaite-Sturgeon as per the requirements of
International Marketing ADM4328 M

University of Ottawa
January 22nd 2013

BUSINESS CONTEXT & INITIAL SITUATION

Amway, a North American Multinational, subsidiary of Alticor Inc. has over the years become one of the leaders in the 90 billion dollar direct selling industry through its use of multi-level marketing and creation of networks of independent business owners and sales. Founded in 1959 by Jay Van Andel and Richard DeVos, the company grew and captivated interest on an international level, especially in developing countries due to its ability to
Option #2: Continue Business and Expansion in India
Main Pros
- The company could continue making profits within the country while fighting the legal battles.
- Little to no research or change needs to be made to the business model or marketing strategy.
- The expansion will create more jobs and revenues, benefiting both India’s citizens and the corporation itself. Main Cons:
- Amway could be forced out of the market if the court supports the government’s view that the corporation is in violation of the Prize Chits and Money Circulation Act.
- Product lose is possible if Amway is forced out of business within the country; the IBO’s and distributors could keep all products they have on hand, instead of giving it back to the corporation.
- Further investment in legal fees would be incurred.
- Loss of time and human capital would be lost to the investment in winning the legal litigations.

Option #3: Continue Business and Expansion in India with Ethocentrism; define a new marketing or distribution plan for its business in India that complies with the country’s legal constraints.
Main Pros:
- The company could continue to operate within the country, maintain its market share.
- Amway India would benefit from India’s growing economy and large population.
- If Amway had global integration with local responsiveness, they could attain a larger market share and increase sales.
- There