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The Avion Group Case Analysis

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Situational Analysis

In 1975 Ruth M. Owades joined The Avion Group where she became the Director of Marketing.

The Avion Group consisted of seven mail order companies, which had all been acquired after achieving good individual success. These companies had flourished within Avion, which had had spectacular growth.

While working with these companies she found out that many people who buy by mail have a lot of hobbies & one hobby that kept on coming in her analysis was gardening. In 1978 seeing an opportunity she offered a proposal to her Chairman to start with a ‘Gardening Catalogue’.

The Avion Group after showing keen interest in her proposal in the beginning later became reluctant, as they had never started a company on their …show more content…

Owades was highly motivated & enthusiastic about the project
2. She had good experience in the mail order business & knew the fundamentals to success
3. She had quite a good no. of contacts
4. At Avion she was always involved with cost cutting & saving
5. Her family members are not dependent on her
6. She arranged for an office & managed to bring down the rent to practically nothing
7. She was able to arrange the warehouse with packaging & shipping facilities at a low cost
8. She arranged for the finance
9. She got the 51% of the equity where as she only had to invest 25% of the total amount being invested
10. Her husbands support

Weaknesses

1. She had never started any business before
2. Lack of funds

Opportunities

1. Many people have a common hobby that was gardening
2. Gardening was very popular in US with various gardening magazines for sale
3. 62% of Avion’s mail order customers showed an interest in gardening
4. She thought there was a market

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