In April 1997, President Amway Japan (AJL, Tokyo, Japan), wondered how to change the first decline in the company's performance suffered Since entering the Japanese market, direct sales in 1979. Established as the tenth foreign subsidiary corporation Amway Ada, Michigan, AJL grown to become the most successful company with 1996 sales of Y212 billion ($ 1.9 billion), accounting for 30% of global sales in Amway. Having succeeded in doubling sales AJL within five years of his presidency, AJL President now needs to develop a strategy not only to restore growth in the second half of fiscal 1997, but also for the long-term goal of the sale of AJL Y300 billion FY 2000. AJL had the following issues in 1997: 1) variations motivate distributors, 2) growing discontent Amway products, 3) increasing difficulties in managing a distribution network, and 4) changes in the market environment. AJL could increase their sales by raising sponsorship, retention, and / or the performance of its distributor membership. AJL strategic options include: 1) the penetration growth, 2) the growth of labor productivity, or 3) both. AJL president needs to come up with a clear strategic design based on careful analysis of the pros and cons of each strategic choice. "Hide
by David J. Arnold, John A. Quelch, Yoshinori Fujikawa, Patrick Reinmoller Source: Harvard Business School 27 pages. Publication Date: February 23, 1998. Prod. #: 598029-PDF-ENG
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