Amway: Reaching Customers through Direct Selling
** Don’t answer the questions on “Tasks and Activities” at the end of the case study provided. Instead,
please answer the followings:
1. This case study reflects the activities of a unique and differentiated organization.
Locate where Amway’s competitive advantages lie. How is Amway better placed
than many other organizations?
2. Compare direct selling to one other form of distribution. Produce a frank and
realistic comparison of direct selling with retail shopping. In doing so, list the
advantages and disadvantages of each.
3. How does Amway distribute its products? How are Amway distributors recruited? In
which ways can the distributors generate income?
4. Is Amway an illegal pyramid scheme? Explain.
