SWOT Analysis NuSkin
This article is a strengths, weaknesses, opportunities and threats analysis of a company called Nu Skin International. Nu Skin International's strength lies in the same old worn out hope system that goes back all the way back to the first land grants in Oklahoma and in 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 hope system that goes back all the way back to the first land grants in Oklahoma and in most of the States west of the original thirteen: "fool's gold." In other words, rather than relying on a true distribution channel, they have "invested" into the no capital (and rather revenue generating) distribution system of word of mouth and "Amway" type distribution. Their distribution is cheap compared to other companies that ship product via the usual methods. Their method appeals to their distributors' hope to get rich rather than work hard and or smart to make a profit. Weaknesses Since Nu Skin has no retail stores or normal channels set up, the Company must rely on pep rallies and emotional or greed enthusiasm to generate sales and as the case mentions, distributors high up on the food chain are caused to purchase product they will never use in order to maintain their place in the ponzi scheme. The main weakness here is that once the public becomes aware of the game, prospective distributors and or customers desire to stay away from just another Amway pyramid scheme. Opportunities Create and establish a normal, more rational distribution channel if in fact the products possess any market demand. Threats Potential administrative inquiries and prosecution could threaten nu Skin should their system be determined to be a pyramid. In summary, the firm must diversify by investing in a proper distribution system which will demand a capital investment which they have avoided. |
