The motivation to produce this document is very basic: There is much discussion about whether the direct selling model is temporarily challenged or simply going through what might be one of its best transformations. The new business environment is impacted by forces and competition that did not exist just five to 10 years ago. The speed of change has never been greater and its impact upon society has never been as profound. Current observations reveal some mature companies are doing very well and new growth companies are emerging, providing much optimism for the future of direct selling as a channel.
However, a rapidly changing business landscape—impacted by quantum leaps in technology and major recessions in mature markets around the world—appears to have raised challenging questions for those seeking new ways to better serve an ever-evolving and much more informed consumer and prospective independent contractor. In an effort to better plan for the future, businesses often assess their current state using an examination of Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.). Such projects will spur additional research by those capable of bringing the best findings to direct selling companies and the overall industry. I have chosen to eliminate the words “Weaknesses” and “Threats” in the S.W.O.T. methodology and replace them with “What’s important” and “The future.”
1. Service or innovations in Armenia:
The industry can claim many strengths, beginning with its focus on products and personalized service delivered through presentations that are educational and often entertaining. The historical focus on education and presentation is definitely a major strength for the industry. Another great strength of the industry is company-provided basic skill training and a focus on personal growth for individuals. We would strongly argue this support makes direct selling the most viable model for anyone keen on creating not only an income but an asset as well.
Each company has its own process and methodology as to how they position their products/services and opportunity; however, the common value proposition throughout the industry is not in the specific product/service being offered but in how independent contractors use these products and services to create income and build businesses. The business model itself has been determined by this assessment to be the industry’s best strength. The potential to earn money, along with ease of entry—and the offer of “privacy of consultation” regarding products, services and the business opportunity—are the industry’s most unique features. This strength is a distinct asset and is not found in any other tried and proven business model.