Avon Case
I. Problem Statement
When Jung took over, there was no definite strategic vision for Avon. Avon reps had no common goal to work towards, and this was translated in their work, which led to the brand having no evident personality even for the consumers. Along with the lack of strategy came the inability to cope with the changing times. A company that was set on their old business model, Avon found it hard to integrate technology into their daily operations. And lastly, proper leadership was lacking even in their management. This made it even harder to remain competitive in the industry. With all the internal and external factors coming into play, will Jung’s strategic management be able to save Avon and ensure the company’s sustainability in the long run?
II. Assumptions
* It is currently the year 2003 – just after the conclusion of Andrea Jung’s initial strategic plan. (Any other specific activities after said year are still just plans and haven’t been implemented yet) * The CFT industry continues to thrive as a strong and profitable industry and the skin care product category is the fastest growing segment within the said industry and globally.
III. Point of View The group wishes to take the point of view of a third party consultant.
IV. SWOT & PESTLE
SWOT Analysis
STRENGTHS | WEAKNESSES | - Avon was one of the key players in the industry
- Vast arsenal of sales people | - Lacks definite strategic vision & strategy
- Brand has weak equity- Sales force are not driven to sell, but to recruit | OPPORTUNITIES | THREATS | - Innovative industry
- New distribution channels that the company can tap
- Underserved market segments (teens, mens etc,)- Growth opportunity in other countries | - Tough Competition
- Changing consumer preferences
- Continuous innovation of competitors- Increased preference in retail |
PESTLE Analysis
Andrea Jung’s vision for Avon was a bold one. She wanted it to be the “ultimate
When Jung took over, there was no definite strategic vision for Avon. Avon reps had no common goal to work towards, and this was translated in their work, which led to the brand having no evident personality even for the consumers. Along with the lack of strategy came the inability to cope with the changing times. A company that was set on their old business model, Avon found it hard to integrate technology into their daily operations. And lastly, proper leadership was lacking even in their management. This made it even harder to remain competitive in the industry. With all the internal and external factors coming into play, will Jung’s strategic management be able to save Avon and ensure the company’s sustainability in the long run?
II. Assumptions
* It is currently the year 2003 – just after the conclusion of Andrea Jung’s initial strategic plan. (Any other specific activities after said year are still just plans and haven’t been implemented yet) * The CFT industry continues to thrive as a strong and profitable industry and the skin care product category is the fastest growing segment within the said industry and globally.
III. Point of View The group wishes to take the point of view of a third party consultant.
IV. SWOT & PESTLE
SWOT Analysis
STRENGTHS | WEAKNESSES | - Avon was one of the key players in the industry
- Vast arsenal of sales people | - Lacks definite strategic vision & strategy
- Brand has weak equity- Sales force are not driven to sell, but to recruit | OPPORTUNITIES | THREATS | - Innovative industry
- New distribution channels that the company can tap
- Underserved market segments (teens, mens etc,)- Growth opportunity in other countries | - Tough Competition
- Changing consumer preferences
- Continuous innovation of competitors- Increased preference in retail |
PESTLE Analysis
Andrea Jung’s vision for Avon was a bold one. She wanted it to be the “ultimate