This article is an analysis of the strengths, weaknesses, opportunities, and threats of a company called Nu Skin International. Nu Skin International’s strength lies in the same old, worn-out system of hope that dates back to the first land grants in Oklahoma and most of the states west of the original thirteen: “fool’s gold.”
Strengths
Nu Skin International’s strength lies in the same old, worn-out system of hope that dates back to the first land grants in Oklahoma and most of the states west of the original thirteen: “fool’s gold.” In other words, instead of relying on a true distribution channel, they have “invested” in the capitalless (and rather revenue generating) distribution system of word of mouth and “Amway” type distribution. Their distribution is cheap compared to other companies that ship the product through the usual methods. His method appeals to his distributors’ hope of getting rich instead of working hard or smart for profit.
weaknesses
Since Nu Skin does not have regular established retail stores or channels, the Company must rely on displays of encouragement and emotional enthusiasm or greed to generate sales and, as mentioned in the case, distributors who are at the top of their game. the food chain must buy products that they will never use. to keep his place in the Ponzi scheme. The main weakness here is that once the game is known to the public, prospective distributors or customers want to stay away from another Amway pyramid scheme.
Opportunities
Create and establish a normal and more rational distribution channel if in fact the products have some demand in the market.
threats
Potential administrative investigations and prosecution could threaten nu Skin if its system is found to be a pyramid.
In short, the company must diversify by investing in a proper distribution system that will require capital investment that they have avoided.