Avon Case

1536 Words Mar 12th, 2013 7 Pages
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
…show more content…
Continuous product innovations have also become a great deciding factor in the CFT industry. As the market’s concern for wellness and youthfulness grows, new products are introduced that are designed to cater to these concerns.

V. Framework Analyses

A. Stool Framework

The three-legged stool framework is used to analyze Avon’s business strategy. In order for Avon’s strategy stool to stand up successfully, its three elements which are market opportunities, Resources/ Capabilities, and Execution, must be firmly in place.

Market Opportunities Resources/ Capabilities Execution

Since Jung wants the company to be the ultimate relationship marketer of products and services for women, she therefore constructed strategic priorities in order to live by Avon’s vision. First is to incessantly invest in R&D and advertising so as to be able to launch new innovative products. Moreover, Jung implemented Sales Leadership Program to its Sales Representatives to have a better idea on how to recruit and to give better chances to gain commission from direct selling. Also since technology has been rapidly growing, Avon catches up as the company innovatively make use of the internet system by efficiently using Avon.com website and making their sales reps as e-representatives as well. Utilization of process engineering is clearly evaluated to be able to get rid of irrelevant costs.

Avon wellness line has been successfully launched and

More about Avon Case

Open Document