Case Study for Avon Essay

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No. | Content | Pages | 1 | Brief Introduction of Avon Product Inc. | 2-4 | 2. | Situational Analysis A. General External Environment [PEST] 1. Political/Legal 2. Economic 3. Social-cultural 4. Technological B. SWOT Analysis * Strenght * Weakness * Opportunity * Threats C. Industry AnalysisThreat of New EntrantsBargaining Power of SuppliersBargaining Power of BuyersProduct SubsitutesIntensity of Rivalry among Competitors D. Matrix Used 1. Internal Factor Evaluation Matrix[IFE] 2. External Factor Evaluation Matrix [EFE] | 5-1011-1314-1919-22 | 3. | Recommendations | 23-25 | 4. | Summary and Conclusion | 25 | 5. | Appendices | 26-29 |

1. Brief Introduction of Avon Product Inc.
In year 1886, a …show more content…
From the financial comparison, Avon is nearly 8 times larger than Revlon. In terms of channel of distribution, Mary Kay, Inc most closely resembles Avon because both use a direct marketing approach. Revlon sell it product through cosmetic counters in department stores and pharmacies. Revenue of Avon is far exceeds those of its closest competitors

2. Situational Analysis
A. General External Environment: PEST Analysis
PEST here represents Political, Economic, Social and Technology factors, which are used to assess the market for a business or organizational unit. The PEST analysis is a useful tool for understanding the market growth or decline, and as such the position, potential and direction for a business. 1. Political Factors: | 2. Economic Factors: | i. Legal Framework for Contract Enforcement ii. Product Labelling Requirements iii. Trade Restrictions and Tariffs | i. Economic Growth ii. Inflation Rate | 3. Social Factors: | 4. Technological Factors: | i. Emphasis on safety ii. Cultural | i. Competing Technology Development ii. Research and Development |
Based on the table of PEST analysis for Avon Products, the company looks into the specific issues that relates and drives them in penetration in the international market and grows globally.
Political / Legal
Political and regulation are always playing a critical role in international business marketing activities. Company who failed to abide or
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