Avon Swot Analysis

Submitted by: Submitted by

Views: 10

Words: 309

Pages: 2

Category: Business and Industry

Date Submitted: 04/28/2016 08:52 AM

Report This Essay

Avon

Avon was formerly known as the California Perfume Company was founded in 1886 by David McConnell. The name Avon came in 1939 with an increased product line. Avon is an American international manufacturer and direct selling company. Avon sells and makes items in beauty, household, and personal care categories. Avon is a multi level marketing company that is the second largest direct selling company in the world. It is also the fifth largest beauty company in the world.

Their organizational structure begins with the CEO and chairperson of the company, Andrea Jung. Under the CEO the company is divided into 6 subgroups: president and chief officer, SVP retail, EVP finance, SVP global IT, SVP Human resources, and SVP corporate communications. Within these subgroups the president and chief officer has another 5 subgroups. The first four are SVP of the different regions that Avon sells and markets it's products and the last one is SVP of global marketing. The regions that Avon sells its products are: Latin America, North America, Asia pacific, Europe and east Asia. And finally the SVP of global communication has its subgroup of VP global marketing.

Avons business model consists of using door to door sales and brochures to promote its sales. When working for Avon you are considered an independent sales representative or your own boss and make your own sales of products from the brochures.

SWOT Analysis of the company:

Strength

1. Differentiated business model to emerge as a prominent player

2. Steady revenue growth

3. Leading position gives power to attract new customers

4. Support sales activities by understanding customers' businesses better

Weakness

1.Declining North American operations

2.Low market share as compared to bigger brands

Opportunity

1.Restructuring initiatives for effectivenesss of the organisation

2.Enter emerging markets

3.Re branding strategy to drive consumer demands

Threats

1.Strong...