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1. What strategy was Avon pursuing until the mid-2000s? What were the advantages of this strategy? What were the disadvantages?
2. What changes did Andrea Jung make in Avon’s strategy after 2005? What were the benefits of these changes? Can you see any drawbacks?
3. In terms of the framework introduced in this chapter, what strategy was Avon pursuing by the late 2000s?
4. Do you think that Avon’s problems in 2010 and 2011 were a result of the changes in its strategy, or were there other reasons for this?
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In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month.
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