AVON CASE STUDY
a) What has been the firm’s corporate strategy to date?
Stronger Brand’s name than rivals:
Again Avon’s history a big player here because it gives the company credibility and name recognition.Avon continues to strengthen its image of core beauty product and international brand product line.In the past few years the company has made several upgrades in imaging and formulations,packaging,and customer service and the accuracy and speed of order delivery have also been improved.Avon products provide a consistent,high quality image in every market and include brand such as Anew,Skin So Soft,Far Away,Rare Gold,Perceive,Avon color and Avon Skin Care.Global brand have continued to grow and account for a substantial percentage of Avon Business,and in 1999 these brand accounted for 51% of the beauty sales core.Avon development of quality global brands gave them a chance to deliver a consistent beauty image around the world,as well as improve relationship with suppliers and become familiar with the mmost efficient way to get foreign sales. Stronger Global Distribution and sales capabilities than rivals: Avon’s ability to produce and distribute products in multiple countries enable them to have a significant amount of international sales.Avon continues to drive their products into new markets and have always been looking for ways in which they can improve their distribution channels.With e-commerce and the implementation of the sales leadership program avon has been able to deliver quality service along with their high quality products.These areas continue to be a focus for Avon in terms of sales capabilities and distribution in foreign markets relative to their rivals.
Quicker Design to market times than rivals:
In 2002,Avon invested $100 million to construct state of the art facility for the research and development operations in order to quicken design to market times.The ability to develop and...