Question 1
Amway was doing well in China, but in 1998, the government of China banned direct selling there, due to some scammers disguised as direct sellers. As direct selling was the Amway’s foundation of marketing, therefore it was a big problem for them. They had to take some decision. Additionally, the government wanted Amway to open physical stores or retailers, regardless of the fact that it’s not their working style. Also, trust was the major factor! Due to some scammers and frauds, the government banned all of the direct sellers without any investigation.
Key Success Factors
The first one was the control and patience. In a meeting, Amway directors and major shareholders decided that instead of acting aggressively, they would cooperate with the government and seek solutions for it. Therefore, instead of shutting down the business in China, they remained true and determined to their mission. Building trustworthy relationships, and taking a long-term view were their core success factors.
Question 2
Marketing is all about courage, control, patience, and determination towards the aim. Secondly, build cordial relationships, even if there are cultural differences in your way. Diversifying is always better rather than sticking to one or two markets. Therefore, one should diversify his business, and Heinz did the same. The most important thing in a business is to have flexibility and having a receptive mind towards ideas and bringing innovation, as they are the key factors of Heinz’s success story. Focusing on long-term and understanding risks, as Heinz did in emerging market, consider on being risk aware, instead of being risk averse. Last but not the least, sticking to the 4 A’s namely availability, affordability, affinity and applicability.
