Avon Financial Analysis



Avon Financial Analysis

Introduction

Avon the world class cosmetic company was founded by travelling book salesmen in 1886. Keeping in view the high demand of cosmetics and perfume products among women the bookseller starts giving free samples. In order to attract the female customers, the book seller recruited female sales representatives who can better promote his product. Therefore, from skin care to hair care and from jewelry to personal care, Avon is the market player. The company's business is consisting of a multi line of products. These products are mainly to attract women. The company from its establishment has gained a recognized position in the market as well as, in the eyes of its customers in a manner that every woman can trust on Avon.

Avon's Global representation is three times larger than the amount of employees and sales compare to its Northern American Division.

The Company is on the view to lead the market in a way that no other competitor can compete with its product line. The company is more towards innovation and change of their products so that they can compete with the others present in the market. The heart of Avon's innovation is the Global R&D Center located in upstate New York. These creators of beauty take a multi-disciplined approach in developing fragrances, makeup, skincare and hair-care products that are high-tech, high-quality and highly appealing to consumers around the world.

The unique selling technique which is a direct door to door selling service is their major competitive edge / competitive advantage of Avon on the other market players. Avon rapidly entered this market in 1991 with mass advertising and large number of women workforce as their sales representatives. It was the time when almost no one executed this unique way of selling products which later became Avon's greatest competitive edge.

INTERNAL AND EXTERNAL ENVIRONMENT (SWOT ANALYSIS)

SWOT

SWOT analysis can be defined as an important method of strategic planning that is used by many organisations to analyze as well as evaluate their strengths, weaknesses, opportunities and threats (Hitt et al., 2012). There is no doubt about the fact that SWOT is not only a powerful but also a most widely used tool that help organisations analyse their business environment and conduct audit of their strategic position. It is important to know that strengths and weaknesses are recognized as internal factors and used to evaluate internal potential of the business. In fact, strength and weaknesses are mostly related to any present situation of the business or any project. Whereas opportunities and threats are identified as external factors and used to assess or evaluate the external environment of the business (Hitt et al., 2012). In addition, opportunities and threats are usually related to the environmental changes that may affect the business or project.

Internal Environment (Strengths, Weaknesses)

External Environment (Opportunities, Threats)

it is recognized as one of the leading global beauty products manuyfacturing companies of the world.

The company has a sales force of more than 4,200 employees.

The operational network of the company ...