Maintaining The Competitiveness Of A Global Brand
An Amway case study

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Page 4: Global Marketing

Amway is a global organisation which markets products in international market places. Planning for global markets is a much more complex process than for domestic markets. It presents many more risks than operating in a domestic market where goods are sold in only one local area. Global marketing involves recognising that people from all over the world have different needs, i.e. values; customs; languages; rules and currencies.

Though it is said that consumer needs around the world are converging, there are commonly accepted needs and wants that go beyond national barriers. The marketing mix consists of a complex set of variables which an organisation combines together in order to ensure that both global and local corporate objectives are achieved.

Standardising elements of the marketing mix is key to operating successfully in the global marketplace. As a result, common needs and wants are identified across countries. At the same time, parts of the marketing mix requiring adaptation are identified so that it can be developed to cater for local differences. This requires a thorough understanding of every market in which Amway operates.

Many advantages arise from competing in a global marketplace, including:

  • economies of scale - over a larger output, costs per unit are decreased to provide the supplier with a competitive advantage. Amway is able to spread its research, development, technology and distribution costs so that it can maximise its production efficiency
  • the development of new business opportunities - in numerous countries, markets are growing faster than in Europe and America. Overseas markets offer the opportunity to compete in different marketplaces and extend the life-cycle of products
  • to meet the tastes of consumers from different nations - over recent years there has been a convergence of tastes resulting in a more global marketplace.

Amway | Maintaining The Competitiveness Of A Global Brand