Compared to Cosway’s competitors, obviously this is a competitive advantage as Coway, one of Cosway’s competitors only specialized in one single kind of product in the market, which is water purifier. This has been enabled Cosway to target more market than Coway did. Secondly, the low price strategy that Cosway is currently applying also helps in expanding its market. By having sustainable relationship with suppliers and also the benefits of economy of scale, Cosway manages to set a relative low price on every single product that it offers.
It would be a significant strength of Cosway as what the CEO of Cosway has said: “the success of multi-level marketing is deeply depends on the success of the products. ” Low price products will definitely more competitive and have a higher chance of survive in the economy recession as people tend to save more even when they are doing groceries shopping. Weakness There are always pros and cons in every single thing, same thing happen to Cosway.
As what we have observed, there are several weaknesses of Cosway that will hinder itself from expanding the business globally. The first weakness of Cosway will be the marketing strategy that is solely depends on word-of-mouth. Instead of implementing their marketing strategy in advertising method like what others did, Cosway depends solely on its agents or business owners to promote its products. The biggest drawback of this marketing strategy that Cosway is implementing is hard to attract any new customer.
In 1957 OMO, the countries first detergent, was launched and grew to be Unilever’s most successful brand commanding 52% of the market share. Completing the detergent portfolio are Minerva, which is sold as both soap and detergent powder and Campeiro, their price based brand. Together the Unilever portfolio commands 81% of the market. Upon review of the company’s strategic options positive economic ...
Cosway is a multi-level marketing company, in which Cosway expand its market by having its agents expanding their social network. If one is not in the social network of any one of Cosway’s agents, then this particular person will never know about the goodness of Cosway’s products. This strategy is somehow limiting the success of expanding market. As discussed in earlier part, offering wide range of products has enabled Cosway to reduce the risk of over-dependent on a single kind of product.
However, this has been turning a weakness for some consumer. As Cosway offers various kinds of products that are produced by different companies from all over the world, some people might think that Cosway is just another 7-Eleven that sells everything. There is no significant product of Cosway that can leave a deep impression to consumers, unlike Coway, which is famous for its water purifier.