The direct selling industry which produces and sells its Products directly to consumers must make certain Adaptations to survive and grow in a changing environment. In Analyzing the industry, 5 important points stand out in Considering its success. First, traditional entry barriers, such As capital requirements are avoided by the firms’ successful Recruiting and organizational features that minimize fixed costs. Second, factor-markets are more important to the firm’s Success than product market-development. Third, factor and Product markets interact to recruit salesmen. Fourth, Managers that need significantly different expertise than Other retail merchandising managers to run their direct Selling firm earn high quasi-rents. Last, as direct selling firms Evolve they parallel franchising with increased problems in Organizational control and vertical integration.

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