;Nowadays, Taiwan’s direct selling industry is facing the following challenges: more similar products or options for consumers, competitions from other online stores, and malicious destruction from unregistered direct selling businesses. Under a condition like this, a new direct selling company must have rigorous strategic thinking and planning in order to sell their products and survive in the industry.
Atomy Taiwan（X Company）, which is a branch of Atomy Korea, gains a high market share in a short period of time by running an online store and adopting smart pricing and bonus strategies in the industry. The research takes a case study method to analyze the strengths, weaknesses, opportunities and threats of X Company to explore its competitive advantages in Taiwan’s direct selling industry. The research is conducted using in-depth interviews with consumers, direct sellers, and company administrators to learn their perspectives and collect information about the company’s operation status. Data collected is used to assess their products, member registration methods, online shopping process, and marketing strategies. Based on the findings from overall analysis, SWOT analysis and Five Forces analysis, the research provides suggestions on possible competitive strategies.
The research finds that when there are various products, increasing bonus points helps boosting sales volumes. In addition, the more members they have, the larger their purchase amounts would be. Accordingly, this study suggests that X company utilizes network externality and maximizes the value of their online stores. Practical suggestions based on X Company’s SWOT Analysis and Five Forces Analysis concludes the paper.