7.

0 CONCLUSION AND RECOMMENDATIONS

Amway (M) Holdings Berhad has a larger market segmentation
compare to Hai-O Enterprise Berhad. Both similarities is they have same target
segmentation of wellness and health care. Market share performance of Hai-O
Enterprise Berhad perform better than Amways share performance. Both companies
facing the same problems which is the weak consumer sentiment. Due to the
implementation of GST and the weakening of the Malaysia Ringgit against US
Dollars on the cost importation, Malaysia economic has become worsen form day to
day. The rise in cost of living expenses has discouraged the consumer on spending and
this has decreased both companies revenue and profit. This is the main factor that
affect their share performance.
Both companies have taken different strategies to overcome this problem. Amway
(M) Holdings Berhad chooses to use aggressive marketing strategy through rallies,
forums and seminars to gain more revenue. On the other hand, Hai-O Enterprise
Berhad uses the multi-level marketing (MLM) strategy to gain more revenue. Even
though the strategy takes more times to be effective, but the wait has become worthy
as the MLM strategy begin to take positive effect at the second half year of 2015. The
strategy successfully boost up their market share price and the growth of revenue keep
improving in year 2016. Therefore, as an investor should choose to invest on Hai-O
Enterprise Berhad.
There are some recommendations we would like to give to Amway (M) Holdings
Berhad. Amway should be focusing on target at young, fresh graduates and
entrepreneurs and recruit them as their distributors. This is because Hai-O Enterprise
Berhads MLM strategy has target on the right persons who are the young
entrepreneurs has accept their offer and become their member. The success of their
new recruitment is the main key that has increased their company revenue and market
share price. Thus, Amway should recruit more new member that can help the
company attach with younger customers segment. In addition, Amway should keep
promote their products through advertising, keep launching new products and expand
the conversion of more regional distribution centers to shops to strengthen the
strategy.
References

Ng, K.K., Zhang, W., Marimuthu, M., & Bhattacharya, S. (2013). Financial
Management (2nd ed.). Selangor, Malaysia: Oxford Fajar Sdn Bhd

Kotler, P. (2000). Marketing management (Millennium ed.).

Upper Saddle River, N.J.: Prentice Hall.