Avon Swot Analysis

Internal Assessment

Strengths

* Avon Company is the leading company of global manufacturer of beauty products and home improvement products around the globe.

* The World's largest direct selling organization. It has approximately 42,000 employees worldwide.

* Avon Company has massive operation throughout North America, Latin America Europe and Asia Pacific Region.

* Avon Company has emerged as one of the top company that permanently ban animal testing on the product line.

* The company has recorded total revenue of US $ 10,862 million last fiscal year of 2010. significant increase of 6.4% in its revenue compared to 2009 total income. and 6.7% increase over its operating profit in 2010. as well as the foreign exchange standing has contributed a lot to the company's revenue growth.

* Avon Company play a prominent player in different products range from makeup to home products, with its differentiated product in different field.

* Avon Company successfully captivate the interest of the different level of consumer providing them a number of range of products to purchase.

* Its strong and attractive brand portfolio paves the way to attract tremendous number of clients all over the world to try and use its products.

* The product lines of the company not only focused on the beauty products. Avon also doing its best effort to manufacture and distribute non-beauty product line such as jewelries, watches, apparels and accessories.

Weaknesses

* Avon also incurring a high advertising costs. Companies advertising spending went from $136 million in 2005 to $249 million in 2008 to $368 million in 2009 and 14% higher in 2010.

* Decrease in North American Sales Revenue by 129.4 million. The decline in sales was due to a sharp decline in Brazil, driven by business disruptions and resulting investments in that market.

External Assessment

Opportunities

* There are enormous growth opportunities existed in countries with huge populations such as China, Indonesia and India. In 2004, the company also purchased 20 % of the shares in its two subsidiaries in China market. And, from then on, Avon-China has become the in-demand market not only for women but also for men's cosmetics.

* Avon has been able to expand and venture to other various product lines for women such as Mark and Avon Platinum Visa Card, in partnership with Bank One.

* The company restructuring its initiatives for organizational effectiveness and rebranding strategy to drive consumer