External Analysis of Avon

Case Analysis 1

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 dissatisfi...