Critique Paper

5 forces model 1. Intensity of challenger among existing competitors The colour of rivalry among ornamental industry is high even though in that respect is legally balanced players that exist in the market. As for Avon Products Inc., its nighest competitors are Mary Kay and Revlon Inc.; where both qualify on viewer (cosmetic) products. Since Avon is already considered as the largest direct shiting club of cosmetics, jewelry, apparels, etc., it even so has to compete with these companies and the company must strategize to get its number ane position in the future. Its edge everyplace its competitors is the ability to sell products to customers on credit, which made it to the position as the largest micro lender to women. 2. Threat of new entrants in that fixture is a low curse of new entrants in cosmetic industry because the barrier to access is high; the high hood requirements and variediation. In order for its products to be kn give, Avo n Products Inc. spent millions of pesos in merging its customer needs in quality, variety and innovation of products as well as underdeveloped advanced technique of advertisements by means of Web-based technology aside from contract with famous personalities for product promotions. Avons customers are also scrape loyal.

It also focus on diversification which allow it to adduce multiple brands had already open up lifelong customer relationship through selling their products on credit. 3. Threat of Product Substitutes in that location is a low menace of product substitutes f or Avon because of its st rategy of offering gross sales/discounts se! asonally, aside from the fact that it distributes products of different categories- beauty, fashion and home. Each phratry targets specific market. 4. Bargaining military force of Supplier There is a low bargaining power of supplier since Avon Products inc. has its own largest manufacturing plants and distribution centers among different countries around the world. 5. Bargaining role of Buyers...If you lack to get a full essay, order it on our website: OrderCustomPaper.com

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