5C Analysis of Amway Nutrilite

1. Company –
The sustainable competitive advantage that the company has is its commitment to
manufacturing quality & innovative products (holds 1150+ patients) and to empower
each of its business owners to propagate the benefits through face to face interaction
with other customers. Their marketing strategy is either B2C or C2C. They practice
direct selling. This gives them an edge over others as their customers are the ones who
market their products thus saving advertisement costs too.
2. Collaborators –
The Company has come a long way since it started. Currently it works with brands
like Nutrilite, Artistry, Attitude, Dynamite, Satinique, SA8, etc. These companies
provide high-quality products helping Amway become a global brand. These
companies have become a part of Amway with Nutrilite being the highest contributor
to revenue.
3. Customers –
Amway targets a huge customer base – the young and old, office going people as well
as homemakers. Nutrilite’s customer base has also been growing. Not just fitness
enthusiasts but also old people or office going folks are taking food supplements.
They also plan to expand their market to a younger generation.
4. Competitors –
It competes with direct selling companies such as Oriflame, Modicare, Avon, VLCC
etc. and other consumer goods companies such as HUL, Proctle & Gamble, Pamolive
etc. Amway faces blocks in the industry such as the risk of brand image deterioration
due to a customer, government regulations imposing the restriction on a business
model, bargaining power of customers, rise of e-commerce sites and changing the
lifestyle of people.
5. Context –
The political and legal include factors such as health and safety, environment,
marketing and sales, company law and employment law. Amway is health-conscious.
Thus, its products are made from natural resources and been investigated by few
thousand professional scientists in order to provide safe and secure while using its
products. Amway is also a member of World Federation Direct Selling Association.
For instance, consumers have the rights to return the products which did not meet
their expectation and refund for its purchasing price.
Amway’s economic growth gradually increased because it provides low-cost and low-
risk business opportunity for IBOs. Amway provides flexible working hours and
places for employees and IBOs to ensure that they have good behaviour in their career
and provide good customer services for its customers. At the same time, safety is
important for communities. The company produces products which are safe and of
good quality for its customers. Impact of social factors influences the company’s
reputation. If the company satisfy the communities, the goodwill of company will be
strong and stable. Lastly, technology factors such as research and development activity,
and the rate of technological change can decrease barrier to entry and influence
outsourcing decisions. Amway did research on how to manage teamwork in company in
order to achieve its vision. For instance, One By One Campaign is so successful
because of the team-work between IBOs and employees. They treat each another fairly
and equally.