This document analyzes and compares Amway (M) Holdings Berhad and Hai-O Enterprise Berhad, two companies in the wellness and health care market in Malaysia. It finds that while Amway has a larger market segmentation, Hai-O has performed better in terms of market share. Both companies face weak consumer sentiment due to economic factors. However, Hai-O has had more success using a multi-level marketing strategy to boost revenue and market share prices from 2015-2016. The document recommends that Amway focus on recruiting young entrepreneurs as distributors, as Hai-O has found success targeting this group.
This document analyzes and compares Amway (M) Holdings Berhad and Hai-O Enterprise Berhad, two companies in the wellness and health care market in Malaysia. It finds that while Amway has a larger market segmentation, Hai-O has performed better in terms of market share. Both companies face weak consumer sentiment due to economic factors. However, Hai-O has had more success using a multi-level marketing strategy to boost revenue and market share prices from 2015-2016. The document recommends that Amway focus on recruiting young entrepreneurs as distributors, as Hai-O has found success targeting this group.
This document analyzes and compares Amway (M) Holdings Berhad and Hai-O Enterprise Berhad, two companies in the wellness and health care market in Malaysia. It finds that while Amway has a larger market segmentation, Hai-O has performed better in terms of market share. Both companies face weak consumer sentiment due to economic factors. However, Hai-O has had more success using a multi-level marketing strategy to boost revenue and market share prices from 2015-2016. The document recommends that Amway focus on recruiting young entrepreneurs as distributors, as Hai-O has found success targeting this group.
This document analyzes and compares Amway (M) Holdings Berhad and Hai-O Enterprise Berhad, two companies in the wellness and health care market in Malaysia. It finds that while Amway has a larger market segmentation, Hai-O has performed better in terms of market share. Both companies face weak consumer sentiment due to economic factors. However, Hai-O has had more success using a multi-level marketing strategy to boost revenue and market share prices from 2015-2016. The document recommends that Amway focus on recruiting young entrepreneurs as distributors, as Hai-O has found success targeting this group.
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0 CONCLUSION AND RECOMMENDATIONS
Amway (M) Holdings Berhad has a larger market segmentation compare to Hai-O Enterprise Berhad. Both similarities is they have same target segmentation of wellness and health care. Market share performance of Hai-O Enterprise Berhad perform better than Amways share performance. Both companies facing the same problems which is the weak consumer sentiment. Due to the implementation of GST and the weakening of the Malaysia Ringgit against US Dollars on the cost importation, Malaysia economic has become worsen form day to day. The rise in cost of living expenses has discouraged the consumer on spending and this has decreased both companies revenue and profit. This is the main factor that affect their share performance. Both companies have taken different strategies to overcome this problem. Amway (M) Holdings Berhad chooses to use aggressive marketing strategy through rallies, forums and seminars to gain more revenue. On the other hand, Hai-O Enterprise Berhad uses the multi-level marketing (MLM) strategy to gain more revenue. Even though the strategy takes more times to be effective, but the wait has become worthy as the MLM strategy begin to take positive effect at the second half year of 2015. The strategy successfully boost up their market share price and the growth of revenue keep improving in year 2016. Therefore, as an investor should choose to invest on Hai-O Enterprise Berhad. There are some recommendations we would like to give to Amway (M) Holdings Berhad. Amway should be focusing on target at young, fresh graduates and entrepreneurs and recruit them as their distributors. This is because Hai-O Enterprise Berhads MLM strategy has target on the right persons who are the young entrepreneurs has accept their offer and become their member. The success of their new recruitment is the main key that has increased their company revenue and market share price. Thus, Amway should recruit more new member that can help the company attach with younger customers segment. In addition, Amway should keep promote their products through advertising, keep launching new products and expand the conversion of more regional distribution centers to shops to strengthen the strategy. References
Ng, K.K., Zhang, W., Marimuthu, M., & Bhattacharya, S. (2013). Financial Management (2nd ed.). Selangor, Malaysia: Oxford Fajar Sdn Bhd
Kotler, P. (2000). Marketing management (Millennium ed.).