Answer to Question #188531 in Marketing for lop

Question

Select a company that produces and markets Networking. What are the factors that affect the firm’s marketing environment? Identify the major environmental trends that are likely to create opportunities and ones that will present threats to this company in the decade ahead?

Answer 1

Amway (American Way) is one of the most successful networking marketing company that sells beauty, health and home care products. The factors that affect Amway’s marketing environment are political and regulatory, Economic, Competitive, Technological, and Social and culture factors. The social factors impact heavily on the sale of products and services. The high level of social concerns result in higher consumer activism. Opportunities largely depends on the external environment. The future of Amway company looks favourable to the brand and holds a great scope. The following are some of the opportunities that Amway has-: Growing demand in the Asian Market, Recent strategies worked well for the firm, Market conditions look sound and there is increment in number of potential customers. The environmental threats may restrict Amway in achieving its goals and objectives. Threats that affect Amway are -: intense competition, ongoing economic crisis, increased cost of raw materials and negative controversy in the recent times.