Business Expansion Perspective

By Marketing, 3EA
Business Expansion Perspective

Although multi-level selling (MLM) and direct sales corporations have up controversies and moral considerations in recent years, MLM has speedily expanded to developing and rising markets within the last decades. Corporations like Yanbal, Amway and Oriflame, square measure a number of the multinationals that have internationalized within the geographic region. Through a grounded theory approach, and victimisation South American nation as a sample of an occupier country, the internationalisation of those corporations was analysed. A huge quantity of the information assortment for this study was gathered through AN ethnographical immersion, and through participant observation, the activities and recruiting practices of those corporations was analysed to see if they provided international financial gain opportunities within the bottom of the pyramid (BOP) markets. The ethnographical analysis found that many multi-level and direct sales corporations offer international financial gain opportunities, however don't contribute to the rise of formal jobs creation. The study provides insights concerning the internationalisation of the MLM corporations in operation in countries with a predominant population at the BOP through personal networks.

Exploratory Research
In order to design and to conduct this study, an academic literature was conducted on the relationship between multi-level, direct selling (due to its ties with MLM companies) and self-initiated expatriation took place. Then, a grounded theory approached process for both data collection and data analysis was carried out through an ethnographic immersion, and it was complemented with data collected and systematized from secondary sources, such as corporate reports and specialized business media.

The adopted methodological approach helps in understanding the different aspects of the problematic situations. The methodological consideration for the Multi-Level Marketing based on ground theory approach and provides a final conclusions to the understanding of business expansion opportunities.

This study focuses on how MLM companies internationalize in emerging. Many people of the informal economy cannot find formal employment due to barriers to entry. Many of the members found at MLM events are older people, which in are not commonly considered for formal employees.

Government Rules for MLM Companies in India

  • It must have at least one bank account with a nationalised bank.

  • Participation Deed or Memorandum of Association should be signed between the participating entities and it should clearly mention the nature of the business.

  • The Entity must agree to pay the incentives at the defined rate at within the agreed time period.

  • The company website must contain the names and identification numbers of their authorised direct sellers.

  • Should have a dedicated cell for consumers where the issues of the consumers must be resolved within 7 working days.


  • It is the responsibility of the Entity to appoint direct sellers upon receipt and scrutiny of application in a well-mannered format.

  • An agreement must be signed for any such appointment between the direct sellers and the direct selling entity.

  • Applications must meet the guidelines of the Indian Contract Act.

  • Each direct must be allotted a unique identification number before allotting the license to start direct selling.

Research and Methodology:

  • The study was designed and structured based on preconceived theoretical approaches on MLM business expansion.

  • The research method of this study is a modified ground theory approach. It included exploratory qualitative research that involved collection and analysis of primary and secondary sources, and most importantly, an ethnographic study that involved participant observation.

  • We had conducted exploratory qualitative research that involved collection and analysis of primary and secondary sources.

  • The gathered data from was memo written, systematically compared with ongoing reflections, and it was coded, classified, cross-referenced and analyzed. This systematic and thorough approach aimed to develop and test theory from patterns emerging from the obtained data.

  • In depth Interviews were used Research instrument for these projects through semi structured questionnaire. They were conducted in unstructured, conversational format either over phone or in person to adapt to the interviewer type and offer flexibility

  • Worked on secondary data for evaluation or estimation of basic parameter

Execution and solutions:

The information that was gathered through primary and secondary sources provided significant information about the expansion of Amway and Orilflame. This research also provides a contribution to the business network theory.

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Article by: Marketing, 3EA