Analysis of Kiehl's (Other (Not Listed) Sample)

PESTLE Analysis of Kiehl’s
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Political
This is a factor of the external environment and encompasses the ways in which the government intervenes on the industry. In this case, the American government has regulatory power in the industry and is programming policies to curb monopoly, just as an example. The government puts policies and regulations that Kiehl's must adhere to in delivery of services and sale of its products (Kiechel, 2010). This area of business concerns the health and wellbeing of people, which puts Kiehl’s under thorough and continuous scrutiny as a company. Therefore, the company has to follow the set health standards
Economic
Economic activities and interest rates greatlyinfluence the skincare industry, considering how much customer get sensitive about skin, hair and body care products. A single complain from a single customer can render Kiehl’s irrelevant in the industry. However, competitiveness is healthy for the industry with different entities trying to beat others by offering products and services at cheaper prices. Kiehl’s has to be careful with this because when such products and services are sold cheaply, the impression is that they are of less quality and endangers the hair, skin or body of the user. Kiehl’s still needs to work on its marketing strategies best fit for such an industry. According to Bergeron (2000), this is critical for strategic management that concerns micro-environmental scanning.
Social
Kiehl’s, as an organization, is itself a social setup of people working together and interaction all the time, with themselves and with the customers. More precisely, the social demographics that Kiehl’s faces include issues to do with gender, gender, race and age. The company considers all these in terms of availing products that satisfy the different categories as above, hence widening the range of probable customer base. Nonetheless, the company operates in a country where trends change rapidly and dynamically. There is not much of population shift but lifestyle changes and diversity is almost unpredictable, and these rule the consumer’s decision making behaviour (Senecal, 2003).
Technological
As mentioned above, the American market for skin, hair and body care products is verily dynamic and not easy to predict in terms of trends, fashion, lifestyle change and diversity. For this reason, Kiehl’s promotes extensive research and innovative ways of presenting its products to the market. The company recognizes that research is a necessity and innovation is not for compromise. The products have to be of high end quality and the services must incorporate technology in delivery. Not only in production but also in communication and sale of the products, the company has made good use of the internet technology and social media for online marketing.
Legal
This refers to the legal requirements that Kiehl’s needed to set up such a business. These requirements vary from country to country, hence the need for flexibility in understanding such. Kiehl’s take this with interest, relative to the company’s desire to expand to other countries globally. According to Gamble(2010), legal issues influence business yet the entity’s management has not much control over such issues. Almost similar to political issues mention earlier, only that those are politically driven. In this industry, Kiehl’s recognizes that a customer can easily sue the company, hence the need for legal representation and interpretation of the law for the company.
Environmental
Kiehl’s does not see much of direct influence or physical effects from environmental factors, especially those related to climate, weather and envi...