Avon is one of the most popular household brands in America, and with the business structure given, it has many opportunities to expand its operations even further. Avon products are well known all over the world, and the reputation of the company does allow the firm to recruit more direct selling agents and train them at a low cost. There is an increasing number of new similar firms in the cosmetics market, who are looking to increase their international market share, as well. Most of them are looking to differentiate their services and products by making them greener, more affordable or exclusive than AVON. Still, there are many opportunities lying in the company's reputation and if they use their competitive advantages the right way, they would be able to improve their operations, so customer satisfaction will be increased and the cost of operations can be reduced at the same time.
Avon has always tried to create affordable but high quality products, which were good alternatives to the makes and versions customers could buy at department stores. The leadership has always listened to their agents, who let the company know about the demand for new innovative products. Although the company is working hard to keep up with the developments of the competitive market, they have recently moved their operations to the Internet as well. The study will examine how the mission statement and business priorities of the company have changed after the changes made within the company structure and whether the changes are pointing to the right direction. The training and recognition system of AVON has a high importance in the company's success, as the main sales funnel is still using independent agents all over the world to promote products and service customers. The infrastructure behind the operations and agents' support is equally important, therefore, it needs to be analyzed. International and cultural issues would have an influence on the market share of the company.
[...] Overview of the Company's Structure Today Today, Avon's operations are still based on direct sales. However, they have somewhat changed the structure of the sales funnel, and due to the competition's movements on the home employment field they managed to improve their service provided for independent agents. In the market analysis below, it will be evident that there is an increase of home-based cosmetic agent job offers, due to the economic climate. Avon can create a competitive advantage on the market, if they are able to stay up to date with the new market initiatives for both products and services and training provided. [...]
[...] There are three different product areas of the company today: home, beauty and fashion. The strongest being the beauty product area, they would need to look for ways of improving the two other product ranges, to be able to create a company that can match the needs of different markets. The advertising costs are not equally distributed throughout the three different areas of manufacturing, and the company needs to ensure that they change the public image of the firm from being solely a cosmetics manufacturer and distributor to a strong multinational firm that has the competitive advantage of creating value in every aspect of women's lives. [...]
[...] The third statement relates to the direct sales aspect of the company. It does not include the benefit for customers, only representatives. Although this statement is designed to promote the business opportunity for potential representatives, there are important aspects of direct sales left out. The savings made by customers, using this type of shopping, as well as the convenience are important for agents as well, and although there are no faults in the statement regarding the business opportunity of Avon, it is not expanded on. [...]
[...] The global expansion started in Canada, with the opening of the Montreal office in 1914. From this time, the company's sales figures grew significantly; by the 1920-s there were 25.000 sales agents throughout the States. In 1946, the “Avon Calling” campaign started, and soon the company started a rapid expansion to Puerto Rico, Venezuela and Cuba. The acquisition of Tiffany's did help the growth of the company, and among the first manufacturers in the industry Avon stopped all animal testing, increasing the popularity of its products. [...]
[...] The fourth statement says best place to and this paragraph also relates to the business opportunity. Fulfilling women's full potential is important, while the mission, values and strategies, including training and development programs, is an important aspect of the leadership and representative aspect of Avon. Still, no proof or data is included in the statement, however, the company would benefit from these. Statistics of earnings, achievements and rewards would make the statement stronger and even more appealing. The fifth statement is an important one from the corporate responsibility aspect. [...]
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