SWOT ANALYSIS ON Avon

abhishreshthaa

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SWOT ANALYSIS ON Avon : Avon Products, Inc. (NYSE: AVP) is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007.



Strengths

* Wide portfolio of store brands & regional banners
* National presence & supply chain capabilities
* Knowledge of distribution and logistics from wholesale business
* Local market familiarity (Albertsons in West Coast, Jewel in Chicago, Shaw's in New England)
* Experience operating a decentralized structure
* Willingness to tolerate multiple solutions and approaches

Weaknesses

* Store operations labor expertise in short supply
* Integration of retail systems
* Divisional alignment
* Marketing expertise underdeveloped
* Lacks shopper data for local insights or targeted marketing programs

Opportunities

* Leverage acquisition of Albertsons
* Development of national banners
* Focus on higher-margin retail business & other departments (i.e., organics)
* Efficiencies from centralizing operations
* National supply chain
* Leverage loyalty card data for shopper insights

Threats

* Highly leveraged
* Wal-Mart Supercenter competition in key markets
* Too dependent on local management knowledge - no systems in place
* Risks losing customers from wholesale business
* Standardizing its stores while it centralizes operations
 
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This monsoon, the umbrellas have been flooded in the market. Everywhere there is one name which is flashing on umbrella is Avon. The trust factor among consumer is very important factor to drive any business. Consumer is is not rational yet they are emotional, if you managed to create the bonding effectively then they crave for more quality products.Avon has managed to build that trust factor among consumer and that is why they are flashing like a glittering light on the slope of umbrella.
 
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