AVON Case International Business Avon

AVON Case International Business Avon Calls on Foreign Markets Case Study Avon's challenges to move into international markets more effectively is attributable to their lack of consistency of their global operations frameworks to the global initiatives and strategies they are attempting to attain. Beginning with the lack of congruency between their sales teams domestically and the needs of the international sales team and progressing into the variation in product requirements globally, Avon has over time completely re-architected their company to overcome these shortcomings (Hill, Still,1990).

The case study Avon Calls on Foreign Markets is analyzed within this paper. Avon is highly dependent on its foreign operations because they comprise the majority of investment in new product development. The company has worked to create a product lines that align to specific market requirements and as a result have proliferated product lines globally (Grammenou, 2009). Given this significant investment in new product development, the company has to pursue growth globally to ensure a positive Return on Investment (ROI) on their R&D and product-related costs.

The socioeconomic and demographic changes globally have led to much fewer stay-at-home moms who are often recruited to be Avon ladies. The challenge is to create marketing strategies supported by exciting, innovative products that interest younger women. While the global recession of 2009 did slow sales, the company found that selling the rejuvenating value of its cremes and lotions would do much to further the brand and sales to Baby Boomer-age women globally (Tarquinio, 2004). This had a counterbalancing effect on the recession's effects on the business.

The company also pursued a "green" or sustainability effort to further strengthen its brand as well (Prior, 2010). Avon has trust as the catalyst of its greatest competitive strength; customers, mostly women, trust the products and see the value of it in serving and helping their families as well. Avon has both word-of-mouth and trust on its side as a provider of cosmetics, beauty and health aids.

Their distribution strategy is one of the aspects that make their unique value proposition all the more effective as well, as it reinforces trust with face-time between their representatives and customers. The Avon model and competitive strength is all predicated on buying from someone you know and trust.

Supply Chain Implications for Avon In advising Avon with regard to their supply chain strategy, the most important aspect of their planning must focus on creating green- and environmentally friendly products that are consistent with the values of their new primary market, which are women in the 30s to late 40s (Prior, 2010). The regenerative aspects of the products also need to be brought out more effectively and the supplier needs to be challenged.