| Author | Truong Huy Cuong |
| Note | A research study submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration (Executive), School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Network marketing was innovated by Carl Rehnborg in 1934 in the United States, one of
the greatest innovation of the mankind (Kien, 2010). Until 1979, was the network
marketing officially agreed by law in the United States. Full name “In the Matter of
Amway Corporation, Inc.” is a ruling by the United States Federal Trade Commission
concerning the business practices of Amway, a multi-level marketing (MLM) company.
The FTC ruled that Amway was not an illegal pyramid scheme, but ordered Amway to
cease price fixing and cease misrepresenting the apparent success achieved by the average
distributor. The FTC stated Amway was not an illegal pyramid scheme since the Amway
system is based on retail sales to consumers.
After the ruling, the network marketing developed worldwide, from about 30 companies
before 1979 to about 70,000 network marketing companies now (source: the World
Federation of Direct Selling Associations). However, network marketing was introduced to
Vietnam in late 1990 and officially ruled by Vietnamese Law in 2005. Network marketing
has changed Vietnamese people’s mind and quality of their living standard. However,
hundreds of thousands of people have become victims of pyramids scheme companies.
This research is aimed at providing readers with a view of the “right” network marketing
and advantages of starting a network marketing business in comparison with traditional
and franchise businesses. |
| Year | 2012 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (Executive)-(EMBA) (Publication code = ESM) |
| Chairperson(s) | Bechter, Clemens;Siengthai, Sununta; |
| Examination Committee(s) | Do Ba Khang; |
| Scholarship Donor(s) | Vietnam Oil and Gas Group; |