• Competition: 1. From the high-priced, high-quality firms - Estee Lauder, Lancame, Biotherm, etc., as well as the local St. Ives Swiss Formula. 2. In the aspect of being natural, there is one big competitor, The Body Shop, which has already created a large part of its image on the idea of naturalness and products not being tested on animals.
Additional missing data apart from the ones mentioned above.
The idea of multi-level marketing is new to Switzerland. Primary research needs to be done in order to determine whether the Swiss associate quality with a product that cannot be bought in a shop. Whether the very fact that it is cheaper, will not be a minus rather than a plus. Finally, whether there will be people willing to become distributors or, in general, what emotions do these people associate with personal distribution. .
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Stage 2: Most acceptable form of entry.
Everything else put aside, the most beneficial form of entry for Avon into any market will be with a structure that it has already established and is used to operate with in over 140 countries, and this would be the corporate structure with full ownership. What would be the legal, political and cultural aspects of doing that in Switzerland and how should Avon go about selecting its distributors?.
LEGAL AND POLITICAL ASPECTS.
What are the legal requirements and/or barriers to establishing a fully-owned corporation in Switzerland?.
• The corporate structure is by far the most widely used form of legal structure with 173,332 corporations registered in Switzerland. Comparing this figure to the size of the population, this would mean that for every 40 people there is one corporation. There is no legal obstruction for foreign firms to create a corporation in Switzerland. The only legal requirement would have to be that the corporation has the SA abbreviation to it, which means "Société anonyme- and is the legal obligation of firms in Switzerland.
