Critique Paper

5 forces model 1. Intensity of challenger among existing competitors The lastingness of rivalry among nonfunctional 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 contract 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 book 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 muddle is a low curse of new entrants in cosmetic industry because the barrier to access is high; the high capital of the United States requirements and variediation. In order for its products to be kn give birth, Avon Products Inc. spent millions of pesos in see its customer needs in quality, variety and innovation of products as well as underdeveloped advanced technique of advertisements done 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 realised lifelong customer relationship through selling their products on credit. 3. Threat of Product Substitutes in that respect is a low brat 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 countr! ies around the world. 5. Bargaining role of Buyers...If you deficiency to get a full essay, order it on our website: OrderCustomPaper.com

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