1. Intensity of challenger among existing competitors
The intensity of rivalry among cosmetic 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 specialize on viewer (cosmetic) products. Since Avon is already considered as the largest direct shiting company of cosmetics, jewelry, apparels, etc., it even so has to compete with these companies and the company must strategize to maintain its number ane position in the future. Its edge over 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 location is a low curse of new entrants in cosmetic industry because the barrier to access is high; the high capital requirements and variediation. In order for its products to be known, Avon Products Inc. spent millions of pesos in meeting its customer needs in quality, variety and innovation of products as well as underdeveloped advanced technique of advertisements through 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 established lifelong customer relationship through selling their products on credit.
3. Threat of Product Substitutes
There is a low threat of product substitutes f or Avon because of its strategy of offering sales/discounts seasonally, aside from the fact that it distributes products of different categories- beauty, fashion and home. Each category 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 want to get a full essay, order it on our website: Orderessay
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