Direct-Sales Model, Essay Example

The advantages that are associated with the direct-sales model involves rapid expansion of the products that consequently leads to increased profits. On the other hand, the disadvantage entails lack of profitability of the new product, increased management layers that complicates communication and the absence of data-based analysis.

Crucial changes were proposed to achieve enhancement in the company performance. The relevant decision for reducing the layers in the management involved hiring of seasonal managers that ultimately led to centralization of investment. Major emphases were also accorded to the organization’s value proposition in consideration of every market. However, drawbacks also existed that were associated with introducing meticulous criteria for investment. This called for discontinuation of 25 percent of the products although some of them were profitable to the company, but nevertheless, some criteria suggested that they must be banned.

At the time of the global financial crisis of 2008, the right decision arrived at by Jung involved expansion of the Avon’s business. The first step involved rapid recruitment global sales representatives followed by establishment of an aggressive strategy for pricing. Introduction of social networking along with media stars were also crucial considerations.

The many changes that were made in the Avon’s business strategy brought significant benefits to the company. However, the benefits were only temporary because the company ignored the long term development strategies. Additionally, the company also failed in adaptation to the regional markets because they had already tapped sufficient profits from global markets. Every country is associated with distinctive culture as well as business environment and this was an important consideration for Avon on entering such markets.