Sources:

http://fortune.com/2012/04/11/avon-the-rise-and-fall-of-a-beauty-icon/
http://www.cosmeticsdesign.com/Business-Financial/Avon-s-financial-problems-continue-in-self-
confessed-tough-quarter
http://www.informationweek.com/software/information-management/inside-avons-failed-order-
management-project/d/d-id/1113100
http://www.bloomberg.com/news/2014-06-01/avon-stalling-means-it-may-be-calling-on-buyers-
real-m-a.html
http://calleam.com/WTPF/?p=6248
http://www.scribd.com/doc/52292825/Competitive-Strategic-Management-Developing-Avon-In-A-
Global-Perspective
ABOUT CSF: http://rapidbi.com/criticalsuccessfactors/

FOUR TYPES OF CSF:
INDUSTRY STRUCTURE:

1. Active Research and Development
Mature and saturated nature of the industry. R&D costs have increased over the past few years as
companies have vied to set themselves apart by offering new and differentiated products to stay
relevant. In addition, the growing demand for anti-aging products and the development of
environmentally sound products have also contributed to the need for increased research.

2. Quality: Production of premium goods/services
Customers will often purchase premium goods in this industry if they are perceived to be quality
goods.

3. Having contacts within key markets
High brand visibility is important in increasing sales of mass-market cosmetics and toiletries.

4. Positioning: Having marketing expertise
In this highly competitive industry, marketing and brand awareness are very important in gaining
market share. However, this factor is somewhat less important in the niche and ultra-niche markets.
Advertising
5. Significant market strength

6. Product Performance: Production of goods currently favored by the market
Manufacturers must be aware and be able to adapt to fashion trends in order to remain
competitive, although some of the larger manufacturers may set trends rather than follow them.


COMPETITIVE STRATEGY AND INDUSTRY POSITION
1. Clear business objectives (e.g. ability to get new products out of R&D and into the market,
retail vs direct selling)
The year Jung became CEO, Avon adopted the slogan the company for
women, moving away from its long-time ad campaign Ding Dong, Avon Calling. The change was
meant to modernize Avon, but it also paralleled a shift in focus within the company. The old tagline
emphasized the direct-selling side of the business. Now Jung was taking Avon into a new arena:
retail.
Odd strategic choices foiled other efforts to go upmarket.
- > con of retail: Avon didnt have the right packaging or positioning to compete
with store brands.
More info: http://fortune.com/2012/04/11/avon-the-rise-and-fall-of-a-beauty-icon/

2. Well-managed Multichannel distribution/ Networking
i. (multi-level marketing approach)
ii. Alan Kennedy, a longtime executive in the industry who worked at Avon in
the 1970s and 1980s, puts it this way: The fundamental challenge in direct
selling is getting people to sell your stuff, not so much getting people to buy
your stuff.

3. Efficient and effective Software technology (e.g. accurate filling of orders)
More info: http://www.informationweek.com/software/information-management/inside-avons-
failed-order-management-project/d/d-id/1113100

4. Intensive customer interaction (e.g. flexibility to consumer preferences)
5. Alert to competitors actions
6. Sustainable improvement


ENVIRONMENTAL FACTORS
1. Social media
2. Internet Capability
3. Adherance to laws and regulations (e.g. animal testing and ISO certifications)
i. Brazil had surpassed the U.S. in 2010 to become the biggest market for Avon
in terms of sales, but managing operations in the Latin American country
vexed the company. When the government required electronic invoicing for
tax purposes in June 2010, Avons computer systems, already nearing
capacity, were further strained. The change created service issues for
representatives, forecasting problems, and product shortages at three times
normal levels.
ii. AVON in China


TEMPORAL FACTORS

1. Managerial Experience: Jungs management; Jungs replacement
2. Stable Financial Structure