Economics
In assessing the future critical strategic decisions facing Avon Products Inc. certain issues must be addressed: 1. Should we seek company growth through market development strategies, expanding into the retail industry, or continue doing business by means of direct selling and kiosk retailing centers. 2. Should we expand our line of premium quality products that would be sold in Avon's spa service, or continue focusing on quality products at affordable prices. 3. Should we provide greater emphasis towards online retailing, with a focus on a more trendy products (Generation Y) and possibly fragmenting our image, or continue seeking the satisfaction of our core customers (seniors and Generation X) Clearly, decreasing single digit sales growth (1% from 1998 to 1999) during an economic boom has made Avon's distribution system its number one strategic priority. With Avon's senior citizen base getting older, and the baby-boomer generation dissatisfied with their direct selling method, there is a need to analyze their sales methods. Strategic decision two provides for those baby-boomers, with their high level of net worth, through the possible means of a high-end prod
Retail online sales are expected to increase 140% during 1999, and the key success factors for business has been convenient navigation and greater price discounts. Despite low growth, there still lie opportunities within the task environment of personal care products. Despite such threats, the personal care industry has future potential. In a highly competitive industry comprised of slow growth (2. This has led to average profitability over that past few years. High growth is expected in the industry for numerous products: hair colorants, self-tanning products, and deodorants. As seen in Avon's financial ratio analysis (Appendix 5), Avon has seen improvement from 1999 to 2000. Having served them so well in the past, Avon's use of direct selling has left them with little variety in distribution. S, and has an expected growth rate of 11% annually. Uncertain how the new Euro will affect European sales, as well as highly volatile Far East currency, profit margins are less predictable. Close interaction with their customer base has led to loyal followers, especially with senior citizens. Unfortunately, their use of human resources is not rare, as seen by the Mary-Kay Company, and thus imitable. And while there are few barriers to entry, brand identity is of vital importance to highly loyal customers. The instability of foreign currency has provided one of the greatest economic threats to global companies who derive much of their sales overseas.
Common topics in this essay:
Products Inc,
Internal Environment,
Uncertain Euro,
Latin Americans,
Mary-Kay Company,
African American,
Return Equity,
External Environment,
Avon Analysis,
direct selling,
strategic decisions,
key success,
growth rate,
success factor,
quality products,
avon's direct selling,
strategic decision,
sales representatives,
personal care,
environment personal,
strategic decisions required,
key success factor,
|
Acceptance Essays
