SWOT examination NuSkin

This article is a strengths, weaknesses, opportunities and threats examination 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, instead of relying on a true dispensing channel, they have “invested” into the no capital (and rather revenue generating) dispensing system of information of mouth and “Amway” kind dispensing. Their dispensing is cheap compared to other companies that ship product via the usual methods. Their method appeals to their distributors’ hope to get high instead of 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 buy product they will never use in order to continue 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 dispensing channel if in fact the products possess any market need.

Threats

possible 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 dispensing system which will need a capital investment which they have avoided.

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