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Kleenex PESTLE Analysis

Published by MBA Skool Team in Companies category Last Updated: March 19, 2023Read time:

Here is a detailed PESTLE analysis of Kleenex which examines political, economic, social, technological, legal & environmental factors.

Political Factors:

The political factors in the Kleenex PESTLE Analysis can be explained as follows:

Kleenex is paper based product company which offers product likes facial tissue, bathroom tissue, paper towels, diapers, etc. its product are manufactured in 30 countries and sold in more than 160 countries. As companies operates in many countries it is exposed of political risks of various countries. The major portion of revenues comes from USA, so political stability of the country becomes very important to ensure continuous flow of revenues for the company. Kleenex profits are not much affected by the covid, as products it offers are used by the people at their home too. It has given great importance to these factors to ensure that it complies according to the political system of various countries it operates.

Image: company website

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Kleenex:

Tissue industry is one of the most sustainable industries in the world currently. There are lots of opportunities which a company can take advantage of in tissue and paper industry as it is not fully recognized till now.

This industry is responsible for millions of jobs around the world. Kleenex has made huge number of profits in the financial year 2019-20. The demand for its product has slowed down in this pandemic due to the effect of pandemic on the hotel industry. It provides various products like tissues, paper soaps, etc. to hotel industry. The industry has got very huge potential in the future as demand of the products the company sell is rising every day.

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Social Factors:

Following are the social factors impacting Kleenex PESTLE Analysis:

Social Factors includes factor like population growth, gender ratio, culture and diversity. The lifestyle of the people across the globe is improving which is very good signals for the company to increase its profits. The demand of its product is rising in developing countries like India, as people of the country is influenced by the western culture and they demand the products offered by the company. Kleenex on regular basis do investment that increases access to sanitation and to empower women and girls. Also, the company. These factors cannot be ignored by the company as ignorance of these factors may adversely impact the image of the company and in long term decrease its revenue.

Technological Factors:

The technological factors in the PESTLE Analysis of Kleenex are mentioned below:

Technology is changing very rapidly now, as companies around world spends huge amount on research development. Hence continuous adoption of the innovative and new technology is of fundamental importance to stay ahead of competition in the industry. New technologies developed more standardized and innovative products to satisfy its consumer and hence also shape consumers experiences of the future. Kleenex have made key investment in the artificial intelligence-equipped sales tools and AI technology to leverage the use of technology in its operations and increase its revenues.

The company has also made trademark application at the United States Patent and Trademark Office (USPTO).

Following are the legal factors in the Kleenex PESTLE Analysis:

Kleenex should make sure that laws of the countries in which it operates are followed. Consumer law being one of the most important ones as it is related to the protection of the consumer from any fraudulent practices of the company. Along with this employment law plays a major role as it dictates how the company employees should be treated in that particular country. There are various factors which the company has to keep eye on and must follow such as the pricing policies, new tax laws, change in the tax rates, modified or new environmental laws and government fines when the company fails to meet the standard laws

Environmental Factors:

In the Kleenex PESTLE Analysis, the environmental elements affecting its business are as below:

These factors have gained great importance as now people are worried about the rising pollution levels in the world. The company has been using green and sustainable technology for the its production processes to reduce the impact of its operations on the environment. Different countries have different norms or environmental standards which can impact the profitability of an organization in those markets.

Even within the country different states may have different laws related to environment. Kleenex has not solely focused on its profit but had made investment towards sustainable development of the nation in which it operates. The analysis of environment factors become very crucial as ignoring these factors may tarnish the image of the company.

To conclude, the above Kleenex PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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