Meeting global responsibilities by caring for communities An Amway case study
Page 2: Growth
Growth is a major driving force for global businesses. It has to be. Standing still is not a viable option in a world in which competitors are growing by building new links in new countries and markets.
Growth brings advantages known as economies of scale. These advantages include being able to spread advertising and marketing costs over much greater volumes of output. This results in lower unit costs and more competitive prices.
Economies of scale include spreading costs over a larger output: the fixed cost of creating the advertisement is much the same, no matter how many markets it is used in.
By expanding globally, Amway can increase its scale of operations. This leads to:
increased sales and profits for Amway
increased sales and profits for IBOs
better quality and a wider, cheaper product range for final customers.
To achieve these benefits Amway continues to expand into new markets such as Eastern Europe and the Ukraine. Amway regularly seeks to develop new products in line with market research aimed at finding out what customers want.
In order to attract IBOs and new affiliates, Amway needs a strong brand image. Corporate Social Responsibility (CSR) is vital to any company seeking to build its image. CSR refers to the role that a company plays in meeting its wider commitments as a citizen. Such commitments include supporting worthy causes and always acting in an ethical, honest way.
Because Amway operates in many different markets worldwide and with a range of affiliates and IBOs, it has to devise and communicate its plans for CSR activities very carefully.
Recently, Amway has produced its 'One by One - Global Cause Program'. The plan is clear and robust and is helping to maintain Amway's reputation with all its stakeholders.
Amway | Meeting global responsibilities by caring for communities