In April 1997, mused the President of Amway Japan (AJL, Tokyo, Japan) as the world premiere decline, the company has experienced in the Japanese market direct sales in 1979 since the entry to undo. Established as the tenth overseas subsidiary of Amway Corp. of Ada, Michigan, AJL had grown, most successful companies with a turnover of 1.996 trillion Y212 ($ 1.9 billion), accounting for 30% of global sales of Amway. Having succeeded in AJL doubling of sales in the five years of his … Read more »

In April 1997, mused the President of Amway Japan (AJL, Tokyo, Japan) as the world premiere decline, the company has experienced in the Japanese market direct sales in 1979 since the entry to undo. Established as the tenth overseas subsidiary of Amway Corp. of Ada, Michigan, AJL had grown, most successful companies with a turnover of 1.996 trillion Y212 ($ 1.9 billion), accounting for 30% of global sales of Amway. Once in doubling AJL sales in the five years of his presidency succeeded, the AJL President must now not only develop for the reconstruction of growth in the second half of 1997, but also for achieving AJL long-term goal of sales of Y300 billion a strategy fiscal year 2000. AJL faced the following issues in 1997: 1) fluctuating distributor motivation, 2) the growing dissatisfaction with Amway products, 3) increasing difficulty in controlling the distribution network, and 4) a changing market environment. AJL was able to increase sales growth by increasing sponsorship, retention, and / or productivity of the dealer membership. Strategic Options for AJL include: 1) penetration growth, 2) productivity growth, or 3) both. The AJL President needed with a clear strategic design based on a thorough analysis of the pros and cons of each strategic choice.
«Hide

from
David J. Arnold,
John A. Quelch,
Yoshinori Fujikawa
Patrick Reinmöller
Source: Harvard Business School
27 pages.
Publication Date: Feb 23, 1998. Prod #: 598029-PDF-ENG
Amway Japan Ltd. HBR case solution

[related_post themes="flat"]