Amway Background and Place

Background of the company: AMWAY Malaysia

AMWAY Global Malaysia stands by an impressive group of indicator. For example sales, profit margins and expanding the power distributor to support the Top 10 executive branch agencies in the high. In year 1976, Amway is humble inception. Amway Malaysia has used extensive network of AMWAY Retail shops and Regional Distribution Centers throughout Malaysia and Brunei networks to extend its business. In 1996, Amway Malaysia has to be listed on the Main Board of the Kuala Lumpur Stock Exchange and it became the first direct selling company. In year 2010, Ministry of Domestic Trade Cooperatives and Consumerism (MDTCC) issue 10-year Direct Selling License to Amway. In the history timeline of AMWAY, Jay Van Andel and RicharchDeVos found and create Amway as known as American Way in 1950s. It was begin in Ada, Michigan. Liquid Organic Cleaner (L.O.C) is the first product release by Amway. L.O.C became the high seller and start taking our housekeeper for serious problems left at earth. In 1960s, AMWAY’s philosophy began to expand, geography, sales and product mix. AMWAY opened their first international office in London, Ontario, Canada in October 1962.

2. Place

Place refers to providing the product at a place which is convenient for consumers to access. The head quarter of AMWAY Malaysia is in Petaling Jaya, Selangor. Because it focuses on direct selling, so AMWAY is different from more traditional distribution channels. Its Independent Business Owners own their own business, with the flexibility to deal directly with their own clients and to build up personal relationships. The channel of distribution describes the stages of ownership that take place as a product moves from a manufacturer to a consumer. There are a lot of AMWAY’s outlets in Malaysia. But as what we know, their outlets only manage to let their distributors/members to purchase. There are over 25 AMWAY’s outlet in Malaysia. So, distributors or AMWAY’s members can purchase the products more easily and conveniently.

(Refer to Appendix 5)

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