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Running Head: Avon Swot Analysis 1

This document provides an analysis of Avon Inc. using a SWOT framework. It identifies Avon's internal strengths as steady revenue growth and high market position. Weaknesses include overreliance on direct selling and declining operations in North America. Opportunities include restructuring initiatives and new markets. Threats include stiff competition, competitive advertising, and supplier dependence. The analysis recommends diversifying sales strategies beyond direct selling and avoiding high prices due to threats and sluggish opportunity pursuit.

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Marjon
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466 views

Running Head: Avon Swot Analysis 1

This document provides an analysis of Avon Inc. using a SWOT framework. It identifies Avon's internal strengths as steady revenue growth and high market position. Weaknesses include overreliance on direct selling and declining operations in North America. Opportunities include restructuring initiatives and new markets. Threats include stiff competition, competitive advertising, and supplier dependence. The analysis recommends diversifying sales strategies beyond direct selling and avoiding high prices due to threats and sluggish opportunity pursuit.

Uploaded by

Marjon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running head: AVON SWOT ANALYSIS 1

Avon SWOT Analysis

Name:

Professor:

Course:

Date:
AVON SWOT ANALYSIS 2

Avon SWOT Analysis

Plan of the Ideas

I will use the strategic analysis framework to develop my ideas regarding the strengths,

weaknesses, opportunities and threats of Avon Inc. Thus, it will give a quick identification of the

internal and external strategic factors in a SWOT matrix. Equally, the framework will give the

best ways that Avon Inc uses to exploit external opportunities, control threats and build as well

as protect its strength while eradicates its weaknesses.

Below is a framework of the plan for the ideas.

STRATEGIC ANALYSIS

INTERNAL EXTERNAL

STRENGTH WEAKNESS OPPORTUNITIES THREAT

Introduction

Development of a SWOT analysis as a strategic plan tool helps managers to study

situation of an enterprise (Korduliaková, 2011). The matrix helps in the evaluation of the present

strength (S), weakness (W), opportunities (O) and threats (T) of Avon Inc products and their

performance in the market environment.

The Avon Product Inc has been performing well in the industry with a good market

position due to the personal contact in its sales process that has been good for a long time
AVON SWOT ANALYSIS 3

(Korduliaková, 2011). Besides, the company has easily available and high quality products at the

door steps of consumers coupled with its regular innovation of the new items that are exclusive

in the market.

Avon Product Inc continues to target housewives who love cosmetics at their comforts in

homes and are ready to spend money on such items when the company makes personal

connections (Kumar, 2005). However, Avon Product Inc experiences a drop in the gain of

potential customers for sometimes as more customers especially women who gain access to

collar jobs over time. On the other hand, the women now have more disposable income to spend

on the beauty products and such would be the best customers if the managers of Avon Product

Inc tap into the new market as direct-selling strategy seem not to work in the current digital

world (Kumar, 2005). Thus, conducting the a SWOT analysis for the company would facilitate

its identification of the internal and external strategic factors that managers need to work on to

enhance its competitive advantage it has held in the market for a long time.

Internal Strengths and Weaknesses

Strengths

I. Steady growth in revenue

II. High position in the market

III. Support in sale activities

Weaknesses

I. Overreliance on direct selling strategy

II. Decline in its operations especially in North America

III. Low market share

External opportunities and Threats


AVON SWOT ANALYSIS 4

Opportunities

I. Restructuring initiative

II. New markets

III. Re-branding strategy

Threats

I. Stiff competition

II. Competitive advertising and distribution network

III. Dependence on third party suppliers

SWOT analysis and Evaluation

Avon Product Inc excels in differentiation business model which makes it a prominent

player in the cosmetic market alongside its steady revenue growth that aids its $ 60 million

budget on redesigning in the year 2000. Besides, Avon Product Inc has high position that gives

power to attract new customers and online shoppers with its continued support sales activities

better than its competitors. Nevertheless, Avon Product Inc works to minimize its declining

North American operations as well as the low market share compared to the bigger brands.

Avon Product Inc can perform better in the market when it restructures its initiatives for

effectiveness, focus on entering the emerging markets and re-branding to drive the demand of its

customers. However, the company should find a way to design the best ways to counter the

strong competition from Oriflame, Lakme and Loreal. Moreover, it should be tactful in facing

the competitive advertising and distribution networks of its competitors while controlling the

dependence on third party suppliers.

Recommendation
AVON SWOT ANALYSIS 5

Avon Product Inc is faring well in the market. However, it should not rely on direct

selling and independent representative due to the change and dynamic customer preferences as

well as their shift in work. Such overreliance led to shrink in its sales. Besides, I would

recommend mass merchandising. Moreover, the company should avoid high target price due to

threats and sluggish way of grabbing opportunities.


AVON SWOT ANALYSIS 6

References

Korduliaková, M. (2011). Analysis of customers' satisfaction with Avon Ladies services.

Kumar, S. (2005). Exploratory analysis of global cosmetic industry: major players, technology

and market trends. Technovation, 25(11), 1263-1272.

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