I just saw that Tupperware posted higher 3rd quarter earnings driven by the acquisition of Sara Lee’s direct selling business and BeautiControl, the skin and make up business acquired in October of 2000.
This got me thinking.
Large companies seem to be continuously acquiring smaller up and coming companies, (see Microsoft), but I can’t seem to remember seeing Amway – Quixtar acquire anyone in the MLM/direct selling industry outside of Nutrilite which was decades ago.
With companies like Tupperware surging due to acquisitions, you have to wonder why Quixtar/Amway are not making acquisitions, even though sales are flat in their core business.
Possible Reasons Why Amway/Quixtar doesn’t acquire other companies:
Lack of Financial Resources?
Lack of quality management to run the new company?
Afraid of monopoly regulations?
Distribution problems?
or
No possible way to integrate a legitimate Network Marketing company into the training and tools mess that has plagued the Amway/Quixtar business for decades.
