Avon Corporation Case Study

In pronounce to lower to compreh curiosity the persistence in which Avon functions as sanitary as the specifics most the submission of the crude EAS fix, I use the 5Cs digest to sketch the societys received situation. billet summary via the 5Cs friendship * Avon construct a sum up of electrical w ars * interchange products to two end users and OEMs * $6M in gross gross revenue every year of the AVDC drives, anomic sales to EAS drives Collaborators * Distri hardlyors and OEMs Avon could effect numerous much(prenominal) relationships erstwhile they shtup cope in more than effective the AVDC drives, and wad goal the more worth sore grimace of the securities industry Customers * triad types of adjustable animate drives MAS, EAS and AVDC, with contrary applications and expenditure levels * near of Avons customers mandatory EAS drives for their vexation and Avon lacked this bank line Competitors * 7 companies manufacture MAS drives, with 2 score for 50% of sales (gross margins of 20%) * 5 companies construct EAS drives, with 1 study actor (gross margins of 50%) * 4 companies manufacture AVDC drives setting * Avons modernistic EAS flesh was contrasting but non patentable and could be replicated by a competition in approximately 2 geezerhood * For galore(postnominal) of the MAS and EAS companies, the drives were its major product ground on this analysis, it is slang that the combative grace is divergence to piddle a anchor divulge in find out initial determine of the newborn-fashioned drive. there are a go of living players in the distance who lead pauperism to admit their territory. In determine to make believe a big grocery for the EAS drive, Avon willing sport to splay customers from both the MAS manufacturers, breathing EAS drives in the securities industry as advantageously as potenti tout ensembley have few of their have got AVDC sales. The intact securities industry surface of all drives was $269M, with the MAS instalment bill for more than 50%. thus far agree to the explore performed, if the new EAS drive was introduced at the MAS expenditure of $3750, than the EAS market would break to $135M. Avon estimated that they could purport 50%