ipl-logo

SWOT Analysis Of Herbalife

826 Words4 Pages

Herbalife is a global nutrition company that has helped people to pursue a healthy, active life style since 1980. Their products consist of nutrition, weight-management and personal care which are available exclusively through our more than 2.3 million independent Distributors in more than 81 countries. They support the Herbalife Family Foundation (HFF) and its Casa Herbalife program to help bringing the good nutrition to children who need it. They also sponsor to a lot of world-class athletes, teams and events around the globe, including the LA Galaxy and FC Barcelona soccer clubs, as well as champions in more than 15 other sports with the mission of changing people’s lives by providing the best business opportunity in direct selling and the …show more content…

That is, independent distributors buy Herbalife products at wholesale prices and then sell them at retail prices. Distributors are motivated through royalties, a performance-based compensation plan, bonuses, and other incentives from the company. Additionally, Herbalife provides its distributors with educational training materials to help them increase their sales and to recruit additional distributors. The company also holds international Company sponsored sales events.

Herbalife Target Market According to the mission of Herbalife it clearly state that the company is targeting user who seek for nutrition …show more content…

Strengths

Huge supply chain of distributors and cash flows
Herbalife has an extensive supply chain of distributors. The company has over 2.3 million independent distributors worldwide, and these distributors are currently operating in 90 different countries. In addition, Herbalife’s cash flows have continued to increase year over year, from $259 million in 2011 to $334 million in 2012. This shows that herbalife made a total profit of $75million in one year.

Large share repurchases
The company has also made large share repurchases of about $557 million, and it has increased the total dividends paid from $85 million in 2011 to $135 million in 2012. Herbalife also earns from dividends and share. This not only proves that this is their strength, but also is herbalife’s competitive advantage in the market. Most companies would not increase their dividend payments unless they believe that they will be able to sustain these amounts in future periods. Thus, an increase in dividend payments should be a positive signal for investors.

Brand name of well marketing

Show More
Related

  • Home Depot Financial Analysis Essay

    1214 Words  | 5 Pages

    The Home Depot has paid a dividend each quarter since the 1990’s, raising dividends on every fourth occasion. They even continued to roll out dividends during the financial crisis in 2008 and 2009. For a company so dependent on the housing market this is extremely impressive, and speaks volumes about financial strength. Management currently promises on returning 50% of earning each year through quarterly dividends. They are also committed to reducing share count.

    Read More

  • The Pleasures Of Eating Analysis

    1260 Words  | 6 Pages

    When buying food, when do you second guess purchasing it because you don’t know where it came from, how much it costed to be manufactured, or if it has been dyed or chemically treated? Consumers of food are quite oblivious to what is done to the food they purchase and eat. In Harvey Blatt’s, America's Food:What You Don't Know About What You Eat, he states, “We don't think much about how food gets to our tables, or what had to happen to fill our supermarket's produce section with perfectly round red tomatoes and its meat counter with slabs of beautifully marbled steak” (Blatt). He also goes to say, “We don't realize that the meat in one fast-food hamburger may come from a thousand different cattle raised in five different countries. In fact,

    Read More

  • Janmar Coating Case Analysis

    2638 Words  | 11 Pages

    The company has been operating fine for years and total dollar sales have been increasing each year. If the company sticks to the status quo, they will continue to stay profitable. 2. Increase brand awareness

    Read More

  • Swot Analysis Of Target Corporation

    956 Words  | 4 Pages

    I. Strengths of TARGET Corporation Target Corporation is one of the largest and oldest public discount retailing company operate in the United States. The company founded in 1902’s by George Dayton (as also known as Dayton Dry Goods in 1962’s). Target store has a huge store footprint and enjoys considerable brand recognition. Target’s portfolio of owned and exclusive brands is also its strength, which allow retailer to a valuable differentiating lover in high competitive retail environment.

    Read More

  • Swot Analysis Of Trader Joe's

    1012 Words  | 5 Pages

    TRADER JOE’S – INDUVIDUAL ASSIGNMENT 1 Part 1 – Introduction What Joe Coulombe did was opening an ordinary supermarket into the industry but the strategies he took were separating the Trader Joe’s from its rivals. What he did was to offer products targeting sophisticated costumers who were searching for good bargains. The offerings of Trader Joe’s were so unique which are not found at rival shelfs. Another crucial decision he made was to take advantage of recent environmental movements such as the rising trend of costumers searching organic foods. The company also decided on selling private labelled products with lower prices than other brands of the same product.

    Read More

  • Swot Analysis Of Jamba Juice

    387 Words  | 2 Pages

    Second, Jamba Juice could open smaller footprint stores in convenient locations that can make the smoothies faster and still continue the current brand positioning. Third, they could increase their citizenship efforts and fund non-profit organizations that focus on educating the public on the benefits of a healthy & organic lifestyle. Fourth, Jamba Juice could seek to broaden their current product offerings, such as smoothies that utilize new raw ingredients. Fifth, they could seek out new suppliers (such as CPG companies) in an effort to cut materials costs, and also provide more unique products. Sixth, Jamba Juice could partner with a gym, or other type of fitness center in an effort to reach a more nutritionally-minded, athletic market segment.

    Read More

  • Cutco Direct Marketing Strategy

    554 Words  | 3 Pages

    Cutco has targeted the high end of that market and created a corporate culture based on maintaining the highest quality standards. In the marketing strategy employed by Vector marketing, the company that manages the sales force for Cutco, customers have the ability to share their personal stories of family and times when their Cutco product has helped or served them. Thousands of customers have written stories to the company to express how their products have affected their lives, it is these stories that create lifetime customers and appeal to other consumers when looking for what they want. Vector calls this the friends of friends approach to marketing and it is very successful in this case as annual sales are over $200 million. I believe that there is more money to be had if they mass produce and used either retailer or wholesaler channels, but Cutco isn’t willing to sacrifice the quality for the

    Read More

  • Case Study Of Apple Inc.'s Diversification Strategy

    1442 Words  | 6 Pages

    Largely, the entry of the company into the distribution channels has limited the threat of major or powerful suppliers. The company has created its own retail stores and online web marketing. This approach aims at capturing the consumers that would want to order the product directly from the manufacturer. In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company.

    Read More

  • Swot Analysis Of Burger King

    1482 Words  | 6 Pages

    Menu Burger king believed that its strength was in its menu which targeted only a certain section of consumers and realised that it had to make changes to be able to compete with its close competitors. It introduced 21 new and improved menu items consisting of mango and strawberry-banana smoothies, “Garden Fresh” salads, chicken wraps, mocha, crispy chicken strips, caramel frappes the expanded menu took cues from both McDonald’s and Starbucks. Earlier burgers kings target was young men with an appetite but with the changes in the menu it was able to attract a larger segment of the population include women, families and the health conscious. Burger king believe that its focus on their food will provide us the opportunity to meaningfully increase same store sales and margins. Marketing and communication Burger King 's main aims and objectives are to serve its customers with the bests meals and services a fast food company could possibly provide.

    Read More

  • Case Study Teamwork In Healthcare

    1264 Words  | 6 Pages

    In addition, the management also includes in their organizational planning and functions, the various highly skilled and experienced team that includes the Marketing team, Export and Contract Manufacturing Sales team, Product development Specialist team, the Naturopaths team, Food Nutritionists, Scientists, Consulting Specialists, Engineers, Legal Specialists, Regulatory Affairs Experts, Procurement Specialists and the team from the Supply Chain and Warehousing Operation. With these teams that work together, the consumers are rest assured that the company and their products has world class innovations and creates healthier lives for New Zealand, Australia and the consumers around the

    Read More

  • Analysis Of Financial Analysis: Whitbread PLC

    3531 Words  | 15 Pages

    This, joined with its great cash-flow, has driven the board to suggest an entire year profit increment of 19.9%. This amplifies its reputation of double digit development, with sales growing by 11.4% in the course of the most recent five years and EPS and dividend per share becoming by 14.7% and 13.5% respectively. (Whitbread Investors,

    Read More

  • Case Analysis: Case Study: Kraft Heinz Company

    1823 Words  | 8 Pages

    The food industry is expected to grow rapidly in the future due to improving lifestyle and rapid urbanization (“Global Fast Food Market”, 2017). With this potential demand created, KHC can easily capitalize the growing foodservice industry and tailor their products to the specific demographic (Bhasin, 2018). Another strong resource KHC can utilize is focusing on nutritious products. As the foodservice industry continues to grow, KHC should further explore on expanding its product portfolio to include healthier options. Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015).

    Read More

  • Examples Of Business Ethics Of Nestle

    2901 Words  | 12 Pages

    Nestle possesses about 450 factories and has businesses in a total of 86 countries around the world. Nestle has a large range of products, from food and snack to ice-cream and cereals. Nestle has the objective to be recognized worldwide as the leader in Nutrition, Health, and Wellness. Nestle has a motto that states, “Good Food, Good Life” that holds the company’s purpose of enhancing the quality of their customers daily

    Read More

  • Organizational Structure Of Nestle

    1276 Words  | 6 Pages

    The company 's moto and tag line "Good Food, Good Life", summarizes its corporate ambitions. Nestle strategically relies on the following goals and objectives- 1. Nutrition, health and wellness 2. Sustainable financial performance 3. Trust by all stakeholders Hence, the objective of Nestle is to become a leading company in the health and nutrition sector in the world, while promoting a common agenda of nutrition and environment protection in which their businesses operates.

    Read More

  • Case Study Of Ajinomoto (Malaysia) Berhad

    1437 Words  | 6 Pages

    In addition, the net profit margin of the Ajinomoto Berhad is increasing. I recommend that the investor can invest in the Ajinomoto Berhad as the profit can be made through the investment in the Ajinomoto

    Read More

More about SWOT Analysis Of Herbalife

Open Document