The five environments in which the company operates
Competitive environment
Two of the closest competitors to Amway areAvon Canada and Regal Greetings.Both of these competitors have web sitesand in our opinion, both of theirweb sites are more sophisticated than Amway.
Services offered
Online Catalogue
Online Shopping
Search Engine
Corporate Fact Sheets
Representative-only site
Industrial Association Logo
Online List of Distributors
Quality of Visual Effects
Political and legal environment
The major concern is security and privacy. Amway distributors and customers will need to be sure that their personal information will not be distributed to other companies for a fee. They should post their privacy policy in the web site in order to give customers more confidence. Amway’s extranet, when established, should also be firewall protected.
Sociocultural environment
This page is mainly for Canadians. Since Canada is a multi-cultural country, people from different culture will access the web site. Internet is growing in popularity and there will be a huge consumer base that is logging on the Internet. As stated in our class, 40% of theCanadian population log on to the Internet once every week and this figureis growing.
Technological environment
In order to create a secure online purchasing site, the following 5 technologies will have to work together; secure server, digital authentication, encryption, merchant software and electronic payment software.
Amway’s current web site has some pictures of people but does not have a lot of graphics on it. We feel that less graphic give Amway more simple and professional look. The disadvantage is that it does not capture our attention as quickly as the graphic will do. Secondly, one problem that we found is that the Canada flag found on the web site get cut off on the homepage, therefore they need to resize their current page.
Economic environment
Estimated 1998 Canadian retail sales was $1.6 billion and direct selling is an $80 billion industry with 27 million sales people globally. Amway and its affiliates have 14,000 employees around the world, including almost 300 at Amway of Canada, Ltd. in London, Ontario.Statistic showed that 37 percent of direct sellers have some college or technicalschooling, 23 percent are college graduates, and 9 percent have done post-graduatework. Twenty-four percent are high school graduates while 7 percent did notcomplete high school.
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