Business Models

In this article I will try to consider the relatively "new" business models, their advantages and disadvantages, as well as development trends in Russia. Such systems are franchising, already firmly entrenched in our country, MLM principle of the company, which, unfortunately, has been underestimated in Russia, but, nevertheless, is gaining momentum and a completely new business model based on the confluence of these systems. About franchising is written rather many materials. The network could be found both general principles of the detailed description of the franchise, as well as specific descriptions of schemes of work on it. The essence remains unchanged. How come this system in Russia in 1993, so and remains unchanged. The same is true of network marketing, namely the principles of building networks that work MLM company. The differences between them are only in the forms of marketing plans, operating methods and product names their distributors.

If we take the largest network marketing companies in Russia, such as Avon, Oriflame, Mary Kay and others – fundamental differences in the scheme of work, you will not find. Yes, there are general differences, but the principle remains the same. Now The situation began to change, begin to appear the company managed to combine these two totally dissimilar models of work in one. The pioneer in this was, again, the cosmetics company DeSheli. I will try to address all aspects of the organization, and identify both positive and negative sides. Based on materials provided to me by DeSheli, as well as materials on the franchise proposals from such companies as SubWey, MacDonald's, Pyaterochka", and marketing plans for cosmetic companies Avon, Mary Kay, Oriflame and not only them, I will try to identify the strengths and weaknesses of the system of franchising and network marketing separately.