Strategic Management Essay examples
Avon Products Inc is a well-known worldwide producer and distributor of skincare, cosmetics, and household items has been in business for the past 126 years (since 1886) was founded by David McConnell. Avon Products Inc operates in over 140 countries. I believe in Avon because I sell the products on a part-time basis for the past three years. The impact of Avon’s mission, vision, and primary stakeholders on its overall success is determined by the company’s revenue, awards, recognition, and their business strategy to remain the leading cosmetic company throughout the world.
Founded in 1886, Avon Products, Inc. (Avon) is the …show more content…
The threat of substitute products: The scope of the threat depends on consumers faithfulness to the brand name A substitute product is something that can match the same products that satisfies the consumer’s needs.
Rivalry among competitors: Two factors that determine the rivalry among competitors are lack of product differentiation or low switching cost.
Harvard Business School professor and renowned strategist Michael Porter identified five competitive forces that influenced strategies in a model called Porter’s Five Forces. The impact of the electronic commerce or the internet on the strategies forced Porter to later update his model (Boone & Kurtz, 2008, p.40). Porter’s model consist of the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors. The internet reduces barriers to entry for potential new entrants. The bargaining power of buyers now sees a shift higher power to the end of the internet. The internet creates new substitutions threats of products. The rivalry among competitors is now weakened the differences among competitors (Boone & Kurtz, 2008, p.41, fig.22). In this day and age, consumers are getting wiser by using the internet to do research about