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Avon Products (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Avon Products

Avon Products (Avon) is engaged in the global manufacturing and marketing of beauty and related products. The company operates worldwide, primarily through the direct-selling channel. It has sales operations in approximately 66 countries and distributes products in approximately 44 countries. The company primarily operates in Americas. It is headquartered in New York City, New York and employs 42,000 people,


Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Differentiated business model to emerge as a prominent player
  • Steady revenue growth
  • Leading position gives power to attract new customers

Weaknesses

  • Declining North American operations

External

Opportunities

  • Restructuring initiatives for organizational effectiveness
  • Emerging markets
  • Re-branding strategy to drive consumer demand

Threats

  • Competitive environment
  • Global macro-economic pressures
  • Dependence on third party supplier
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