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Unit 10: Purchasing in the Domestic and Foreign Marketplace

Notes
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Caselet Amway: Reaching Customers through Direct Selling

or the modern business organisation, developing goods or services is not enough.
Goods must also be available in the right quantity and at the right location in order
Fto reach the customer.
For the organisations themselves, distribution strategies should never be underrated.
Developing an effective way of reaching customers may be the cornerstone upon which
their successes are founded.
One reason for their success is that they reach their customers in a better and more
appropriate way than their competitors.
The success of every organisation depends upon the satisfaction of its customers. The
Amway product range covers many consumable items which most people have in their
homes. The quality of its products is considered to be the organization’s driving force.
Amway is committed to ongoing research and development.

The direct selling industry has grown rapidly over recent years. Changing lifestyles,
demographics and economic recession have all been factors influencing this growth.
Amway provides people with business opportunities across the globe.
Direct selling is not about ‘getting rich quick’ it is about creating rewards for effort and
initiative. With low risk and low capital investment, Amway provides people with the
opportunity to achieve and to improve their lives.
As a leading player in the world of direct selling, Amway is helping to ‘clean up’ the
industry and provide a valuable and acceptable form of product distribution. In an
impersonal fast-moving world driven by technology, Amway provides the personal touch.

Source: http://businesscasestudies.co.uk/amway/reaching-customers-through-direct-selling/the-
personal-touch.html#ixzz2OAiHoEO6

Self Assessment

State whether the following statements are true or false:
6. Internationalization of the marketplace, global competition, and changes in the business
environment have contributed to the decrease in international purchasing.
7. U.S. firms, recognizing these trends, are entering the international arena in increasing
numbers. Simply stated, domestic suppliers alone cannot meet all the competitive needs
of a multinational corporation.
8. International sourcing has emerged as a critical component of corporate strategy, aimed
at reducing costs, raising product quality, increasing manufacturing flexibility, and
improving designs.

9. The strategic importance of international purchasing, describes procedural and managerial
issues of concern in international procurement, and delineates the significant differences
between buying from foreign and domestic sources.

10. The awareness amongst the firms has been generated by the strategic emphasis placed on
product quality, cost competitiveness, and the just-in-time approach to manufacturing
and delivery.

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