Avon Products is a personal care, beauty, and cosmetic products manufacturing Anglo-American multinational company. David H. McConnell founded the company in 1886. Today, we’ll discuss the SWOT analysis of Avon; it outlines strengths and weaknesses; opportunities and threat that the company has to face; as business strategy analysis example company.
The products and services portfolio of Avon
- Personal care
- Skincare
- Perfumes
- Beauty products
- Cosmetics items
- Owner Company of Avon
- Natura Holding SA
Statistical facts and figures of Avon
- Annual revenue – 2.77 billion USD (2022)
- Net income – -120 million USD (2023)
- Employees – 23000
- Net worth of assets – 2.16 billion USD (2022)
Competitors of Avon
- Yatsen Holding
- Lush
- Amway
- Sephora
- Estee Lauder
- Oriflame
- Sally Beauty Holding
- Lancome
- Revlon
- L’Oreal
The SWOT analysis of Avon would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Avon SWOT analysis as a business strategy analysis example company as follows;
Strengths of Avon
Some of the main internal strengths in the Avon SWOT analysis example company as business strategy analysis are as follows;
Large Network
According to an estimate, Avon Products has established a very large network and the company is operating its beauty and cosmetics business in over 100 countries across the world. The global network of beauty product businesses strengthens the company’s market and brand positioning.
Product Portfolio
Avon Products offers a wide range of beauty, cosmetics, personal care, perfumes, and skincare products and services to customers. The large product portfolio helps the company target various segments of the customer market relevant to their diverse needs and requirements.
Brand Awareness
Avon Products has a very long history and strong legacy comprising over 130 years. The company has earned a respectful brand name and reputation in the beauty and fashion industry. It led the company to achieve a unique brand position in the beauty and cosmetics industry.
Marketing
Avon Products has successfully run various marketing and advertisement campaigns for the promotion of its beauty products and services. They’re like social media platforms, print media, billboards, digital media, TV, and others. It helped the company to spread brand awareness and promote its beauty and cosmetics products among the targeted customer market.
Strong Finances
According to an estimate, the net worth of Avon Products assets is over 2.14 billion USD. Strong Financial positioning helps the company to fund various new projects like new product development, research to improve existing products and find efficient methods of operations.
Weaknesses of Avon
Some of the main internal weaknesses in the Avon SWOT analysis example company as business strategy analysis are as follows;
Controversies
Many top management employees were involved in bribery charges in 2009 for violating the law of the Foreign Corrupt Practices Act. The company finally settled for the case of 135 million USD in 2014. Such types of corrupt bribery practices are charges are negatively impact the company’s reputation.
Lower US Market Share
The US and North America are the world’s leading and highest-spending consumer markets. Avon Products’ market share has been gradually decreasing in the US and North American markets. It is not a good sign for the company’s growth and productivity.
Opportunities for Avon
Some of the main available opportunities in the Avon SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Avon Products should expand its customer’s market share by entering new geographical regions and markets across the world. Middle Eastern, Asian, Southeast Asian, Australian, Indian, and Chinese markets hold great growth potential. It would help the company to amplify and multiply its sales in those regions and markets.
Product Expansion
Along with market expansion, Avon Products should expand its product portfolio by launching new product lines. Organic and natural beauty products are trending, the cosmetic brand should launch fully organic and natural beauty products to keep up with the growing market trends.
Strategic Alliance
Avon Products should develop strategic alliances with other cosmetics brands in the new markets. The joint venture would help the cosmetic brand to amplify its customer market share, revenue, and sales by targeting and reaching more customers.
Threats to Avon
Some of the main potential threats in the Avon SWOT analysis example company as business strategy analysis are as follows;
Tough Competition
Avon Products is facing tough competition from brands like L’Oreal, Lush, Amway, and Sephora. They all have earned a significant market share, and their market presence is decreasing the market share of the beauty and cosmetic brand.
Regulations
Avon Products should comply with the laws and regulations of the country. The corruption and bribery charges are not only negatively impacting the company’s reputation, but they’re also costing the cosmetic brand millions of dollars.
Conclusion: Avon SWOT Analysis Example Company |SWOT Analysis of Avon |Business Strategy Analysis
After an in-depth the SWOT analysis of Avon Products; we have realized that Avon Products is the world’s leading beauty and cosmetic product manufacturing brand. If you are learning about Avon SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
