| As the development of internet in the1990s, people pay more attention to the concept of business model. People feel astounded that some new enterprises can create outstanding performance just rely on a good business model. People become realize that traditional elements, such as products, quality, technology, human resources, management, are not so important as before. A good business model can make a enterprise success in the beginning. The word "business model" becomes a common word always come out from the mouth of the entrepreneurs. Once business model was so popular. Until the20th century, because the development of internet met with setbacks, people considered business model relay quieted. In the beginning of20th century, as the recovery of internet and the development of high-tech based on information technology, business model become the focus of concern once again. But this time people took business model from a rational standpoint. Many researchers and businessmen began to study the theory of business model and then put the theory into practice. Nowadays, the competitions between companies become fierce. Business model will be the determinants of competitions. So the creations of business model will be more important than those of products and services. Just as what management guru, Peter Drucker says "Now the competitions of enterprises are not between products, but business model." So we can see, business model will play more important part in companies.Simply, business model are the ways to earn money. It is a total concept to describe the construction of the company. From the production and research of the products, to sales and after-sale services, are all relevant with business model. A new business model usually appears in a certain market environment, and driven by the demands of customers, which decides all business models have a life cycle. Any business model will experience the process of emerge, evolution, mature and recession. So if enterprises want to acquire persistent competitiveness, they have to create business model continuously. A new business model usually appears in a certain market environment, and driven by the demands of customers, which decides all business models have a life cycle. Any business model will experience the process of emerge, evolution, mature and recession. So if enterprises want to acquire persistent competitiveness, they have to create business model continuously, especially in this society where information technologies are advanced, people’s demands are diversified and personalized. At present, the researches of business model focus on two aspects. One aspect focuses on the definitions of business model. Another aspect focuses on the demarcation of the components of business model. Although they research business model from different point of view, their theories have something in common. They all think that business model not involves a certain value chain, but every value chain of the company. It describes what the enterprise does, what kind of products or services the enterprise provides, who are the customers of the enterprise, how to earn money and so on. Besides, not any business model is a good one. Only those that can make profit for the enterprise and provide outstanding value to the customers are good business models.Direct selling model appeared in the1950th.as a new business model, it broke the traditional selling model and realized customers can get products from manufacturers by reducing intermediate links. Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location, marketed through independent sales representatives who are sometimes also referred to as consultants, distributors or other titles. By the impact of the financial crisis, the development of most emprises is in a downturn. But direct selling enterprises, such as Amway, can create outstanding performances every year, which reveals the advantages and charm of direct selling models. This paper analysis the business model of Amway (China) on the base of the theories of business model and proposes the ways and directions of its innovation.The main contents of this article are as follows:The first chapter is the introduction. This chapter mainly introduces the background and significance of this paper, the main research contents and structure, and study methods.The second chapter is literature review. First of all, it summarizes the definitions of business model from home and abroad and classifies them. On the base of these theories, I present my own view. Second, it summarizes the theories from home and abroad about elements of business model. At last, it introduces the innovation of business model in view of value chain theories.The third chapter is the analysis of business model of Amway (China) and the conclusions of the problems of the direct selling model. First, it is the introductions of Amway (China) Corporation. Then, it is the analysis of the business model of Amway (China) on account of value chain theory. At last, it proposes the problems exist in the direct selling model of Amway (China).The fourth chapter proposes the ways and directions of the innovation of Amway (China)’direct selling model. First, it analyzes the macro-environments of direct selling industry by PEST method. Then, it analyzes the advantages, weakness, threats and opportunities of the direct selling model of Amway (China) by SWOT method. Then introduces how to improve Amway (China)’direct selling model. In the end of this chapter, it looks to the future of Amway (China).The last chapter of this article is the conclusions. Mainly introduces the study conclusions and suggestions.Contrast with some other articles, this one reaches some innovations.1. Innovation of the themeBusiness model is a new concept and direct selling is also a controversial industry. These years, there were many researches on them. But few of them’ connected this two together to research. This paper researches the direct selling model of Amway (China) based on business model theory instead of that of marketing, which is the main innovation of this paper. Besides, the researches before most focused on the success of directing selling model, few of them pointed out the problems existed in directing selling model. Contrast with them, this article not only mentions the problem, but also points out the ways to solve them.2. The innovation of research frameworkThis paper analyzes the business model of Amway (China) based on Joseph Schumpeter’s value chain theory and points out the ways to innovate around this chain which contains every aspects of the enterprise.3. The innovation of the research resultsThe researches before mostly focus on the success of the directing selling model of Amway (China) and their conclusion is that directing selling model is the trend in the future. But after the analysis, this paper proposes that the disadvantages of the traditional directing selling model have become clear. So the conclusions of this paper is that the transition of directing selling is unavoidable, a diversifying selling channel is a good choice.The study indicates that Amway (China) have many advantages in its products production, research ability and logistics, but we still can not neglect its disadvantages in direct selling model. Therefore, only if it innovates its business model according to the changes of the environments and customers’demands, can it develops well. |
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