Managerial Skill- Activity 1

Audit Company- Avon Cosmestic (M) Sdn Bhd

Group Member:
1. Lim Sook Yee 232000
2. Koit Wan Zhi 232642
3. Sho Soon Yat 232961
4. Low Chee Onn 234084
5. Wong Ken Wai 234099
Five Forces of Avon
1. Supplier Power
Bargaining power low due to numerous of suppliers exist.
2. The threat of new entrant
High entry barrier (start up cost, technology R&D)
3. Threat of substitutes
Level of substitute low or NO!
4. Degree of rivalry
High (Global competitors)
5. Customer
Switching cost Low
General Forces

1. Political
Global coverage (different policy)
2. Economic
Currency (import)
3. Demographic
Population increasing (women, age structure)
4. Technology
Customer preference never satisfy (R&D increasing)
SWOT Analysis
Strengths
Strong Brand Image
Popular Online Market
No animal testing
Multiple Retail Channel
Opportunities
Increase Upon Social Media
Going Green
Geographic Growth
Socially Conscious
Weakness
Advertising Cost
Low Market share compared to
bigger Brands
Declining Operating Margins
Threats
Currency Fluctuation
Competition
Government Regulations
Dependent on Others Needs
 Strengths Weaknesses
W1:Advertising Cost
S1:Strong Brand W2:Low Market
Image share compared to
S2:Popular Online bigger Brands
Market W3:Declining
S3:No animal testing Operating Margins
S4:Multiple Retail
Channel

Opportunities SO WO

O1:Increase Upon Social

Media
O2:Going Green