Avon Products Essay

894 Words4 Pages
1. In what ways does Avon follow a global strategy? Does this experience indicate that it should pursue a different strategy? Avon follows a global strategy in the sense that it pursues economies of scale and scope in manufacturing, logistics and marketing by selecting the most cost effective facility locations and scales of operations on a worldwide basis. The company’s vision statement indicates that it has a global strategy. They have production facilities in 45 countries and a market covering over 135 countries. Even though they are a very global company they do think locally which indeed proves that they should not pursue a different strategy. The experience with China indicated that Avon would have to pursue a different marketing strategy in response to the actions of the Chinese government. However, they didn’t indicate that there was anything wrong with its original strategy under the previous circumstances. It is being forced to follow in China, the company is experimenting with applying the knowledge it is gaining there to operations in selected other markets. 2. What options did Avon have in responding to China’s ban on direct selling? Avon didn’t have much option as to cease sales operations in China after they banned direct selling and had to organize themselves with retail facilities. Avon could have just taken a different retail approach as opposed to direct selling. They could have also cease all sales and tried to sell through other retailers. Another option would have been to continue direct selling until the deadline and have to make other decisions. Another option could have been to get out of China but that would not be for sales because Avon would be losing a lot of money. 3. What effects will the use of traditional retailing in China have on Avon’s overall marketing strategy? The effects of use of traditional retailing in China
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