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 products and services through growing spa service, or wellness center. The last strategic decision relates to Avon's lack of a well-developed online retail store. With 73 million people in the U.S. comprising the neglected, but technology rich Generation Y market, Avon has the possibility or reaching the largest teen population in history. In a highly competitive industry comprised of slow growth (2.8% from 1995-99), such strategic decisions will be required of Avon to compete in the 21st century.
             Even in the highly competitive world of personal-care industry, many opportunities exist. In terms of the macro environment, a few major demographic clusters remain that have been neglected. The African American population already comprises th...

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Economics. (1969, December 31). In MegaEssays.com. Retrieved 18:32, April 24, 2024, from https://www.megaessays.com/viewpaper/22955.html