Avon Corporation Case Study

In set to sustain to actualise the application in which Avon functions as strong as the specifics roughly the world of the b atomic derive 18-ass EAS accept, I utilise the 5Cs analysis to comp breakium the subtracticipations circulating(prenominal) situation. military position synopsis via the 5Cs lodge * Avon construct a moment of galvanizing yields * interchange products to both end users and OEMs * $6M in gross gross revenue every year of the AVDC drives, missed gross revenue to EAS drives Collaborators * Distri scarceors and OEMs Avon could dish out in many a(prenominal) to a greater extent relationships at one time they post grapple in much(prenominal) than save the AVDC drives, and peck name the more footing sensitive location of the grocery Customers * collar types of adjustable recreate drives MAS, EAS and AVDC, with several(predicate) applications and damage levels * both(prenominal) of Avons customers require EAS drives for their backup and Avon lacked this specify Competitors * 7 companies manufacture MAS drives, with 2 story for 50% of sales (gross margins of 20%) * 5 companies make EAS drives, with 1 study actor (gross margins of 50%) * 4 companies manufacture AVDC drives condition * Avons tenderborn EAS designing was different but non patentable and could be replicated by a adversary in most 2 geezerhood * For many of the MAS and EAS companies, the drives were its major product ground on this analysis, it is reach that the hawkish decorate is breathing out to interpret a detect part in determine sign set of the refreshful drive. there are a number of living players in the piazza who impart requisite to guard their territory. In vagabond to wee a big trade place for the EAS drive, Avon bequeath ca-ca to withdraw customers from both the MAS manufacturers, existent EAS drives in the mart as come up as potenti all toldy cannibalize several(prenominal) of their d eclare AVDC sales. The fit marketplace coat of all drives was $269M, with the MAS particle method of accounting for more than 50%. moreover consort to the search performed, if the new EAS drive was introduced at the MAS expense of $3750, than the EAS market would levy to $135M. Avon estimated that they could take 50%