With 70 percent of the firm's sales coming from overseas, Amway, one of the largest direct-sales companies, is truly a global enterprise. Based in Ada, Michigan, the company has two sibling companies: Amway Asia Pacific and Amway Japan. Amway markets and sells a vast array of products - including hygiene, health, and beauty aids - through distributors in over 50 countries. In recent years, Amway has started to knock on new doors. It has focused on Asia and newly democratic nations in Eastern Europe to sell its list of Western luxuries: Queen cookware, Glister toothpaste, Oneida flatware, Rubbermaid food storage containers, SA8 laundry detergent, Positrim Weight Control System, and Wedgwood dinnerware. Amway has about three million sales representatives worldwide, with about 750,000 in the United States. In 1998, the company decided to expand its mutual funds enterprise. Amway has manufacturing facilities in the U.S., China, and South Korea.

Spreading east

Amway announced the opening of Amway India Enterprises (AIE) in 1998. Headquartered in New Delhi, the new branch marks Amway's entrance into the world's second most populated country. "India is a country of tremendous energy and optimism," announced Amway President Dick DeVos. "The enthusiasm of the Indian people teamed with the great potential provided through Amway will be a winning combination." See Spray Glass Cleaner Concentrate and Satinique 2-in-1 Shampoo and Conditioner are two of the products offered at this new site. In July 1999 Amway opened Amway Scandinavia. As part of Amway's European regionalization program, the new business region consisting of Finland, Norway, Sweden, and Denmark will be integrated into the existing Amway infrastructure. According to Amway's chairman, Steve Van Andel, this is the first time that the corporation has simultaneously launched four affiliates, "and combining four countries into a single market region organizationally and operationally is another first."

Cyber expansion

As a company always on the make, Amway expanded into cyber space in September 1999. The new Amway sister company, Quixtar at www.quixtar.com, has access to Amway's extensive network of independent business owners capable of driving new customers and business to the site. For cyber shoppers registered with Quixtar, the company offers products and services from many top companies in addition to products from Amway brands like Nutrilite, Artistry, and SA8. Since its establishment, the site has already registered over 200,000 interested contacts. Nearly 50 percent of Amway's business comes from internet sales.

Amway versus P&G: round one

Business rival Proctor & Gamble has been pounding Amway both in cyberspace and in the courthouse. P&G issued a claim in July 1997 that accuses Amway of operating an illegal pyramid scheme. In its suit, P&G claimed that Amway's business practices violate civil racketeering statutes. P&G attorneys wrote in the complaint: "The Amway enterprise is in reality an elaborate, illegal pyramid scheme." In cybertrouble, Sidney Schwartz of Beaverton, Oregon decided to construct his own extensive web site on Amway in early 1996. Its title: "Amway - The Untold Story." After leaving a retail store job in 1998, Schwartz became interested in Amway's distribution network. He encountered many stories of "concealment, deliberate or unintentional" on Amway's part. He then decided "to provide information and perspectives" on the company "that people were not getting from Amway or the motivational organizations that recruit Amway distributors." Meanwhile, Amway has subpoenaed Schwartz in connection with the P&G lawsuit and a separate suit by distributors in Georgia.

Amway versus P&G: round two

Consumer products monolith Procter & Gamble may be lending its support to a web site accusing Amway of being a cult that is "screwing people over." According to Amway's October 1998 lawsuit, P&G is allegedly trying to blame the company for the recent resurgence of the rumor that P&G's trademark is a satanic symbol. Amway furthermore accuses P&G of hiring a consultant who writes and maintains this Web site, which "foments hate rhetoric" and accuses Amway employees of lying and cheating. The complaint seeks unspecified compensatory damages, attorney fees, and a permanent injunction.

Amway versus P&G: round three

After two weeks at court, Procter & Gamble's suit against Amway was dismissed in May 1999. Amway's Vice President and Deputy General Counsel, Mike Mohr, "had hoped that Judge Gilmore's decision would put this issue to rest." Yet the saga continues. P&G's spokewoman, Elaine Plummer, announced plans to appeal the decision that has already cost Amway "nearly $20 million" in legal fees.

Refocusing