Sample Essay on PESTEL Analysis of Kohl’s

PESTEL Analysis of Kohl’s

A PESTEL analysis of Kohl’s can be used to monitor and analyze the factors of external environment that can affect this company. PESTAL analysis can be defined as a framework for identifying Political, Economic, Social, Technological, Environmental and Legal factors that affect an organization. Kohl’s is company that is actively involved in supporting education and health initiatives of kids in different communities. For more than a decade, this company has dedicated a lot of money towards activities that are aimed at giving kids a healthier and happier future. Such activities include injury prevention, nutrition programs, immunization, cause merchandise and scholarships among others.

A clear PESTEL analysis of Kohl’s

Political factors

These are ways and degree of government intervention in an economy. In the case of Kohl’s, political factors that may affect its operations include the tax returns issuance and increased efforts by the government to stabilize the economy. This implies that there is a lot of money that is circulating. When citizens get more money back on tax returns, it means that it is possible that more money will be spent on needs and wants including what Kohl’s deals in.

Economic factors

The economy is coming out of the deep recession. This means that people are likely to increase their spending. The recovery phase is starting with mortgage rates stabilization. The value of the dollar is also increasing. Overall sales and spending in retail stores is increasing as indicated over the last months. This indicates that the economy is improving. Kohl’s has considered this and it is sending “Yes” coupons to customers while issuing Kohl’s cash. It has also created a reward program where after spending $100.00, customers get a coupon of $5.00 that can be used in the next purchase.

Social factors

Social factors that affect Kohl’s include the desire for the best items at the most reasonable price ever by customers. Most customers want to buy what is trending among celebrities. These are the hottest and latest items. With this focus, Kohl’s continues to offer celebrity brands that include Rock & Republic, Candies, Marc Anthony Collection, Jennifer Lopez collection and Simply Vera Vera Wang among others. Online shopping is another popular social trend. With many consumers shopping for merchandise online, the organization has to maintain an online presence while expanding its base of internal associates while reconstructing its website to make it friendlier to users.

Technological factors

More customers are shopping for merchandise online. It is important that the company improve and maintain the online experience that it gives its customers. There has been an increase in online shopping by 11 percent over the recent years and more money is being spent through online shopping. With threats from online stores like Amazon, Kohl’s must establish its online presence and present itself as a 1-stop store for shoppers. Therefore, Kohl’s must engage in innovation and keep adapting to the unique demands and needs of customers and the industry. Thus, Kohl’s must keep improving the experience that it gives its online shoppers through the launch of new apps with Apple as well as Android Smartphone.

Environmental factors

Recently, people have become more concerned about global warming. Environmental activists groups, organizations and governments are pushing for the reduction of pollution and waste that is destroying the environment. Kohl’s has to be committed in the conservation and protection of the environment by initiating solutions for encouraging long-term environmental sustainability. Such initiatives include the construction of environmental friendly buildings and encouraging better daily practices such as recycling hangers.


While offering its products and services, Kohl’s must abide by the set rules and regulations where it operates.

Why PESTEL analysis of Kohl’s is important

Kohl’s PESTEL analysis is necessitated by the need for assessing weaknesses and strengths of this company in the light of the external environment within which it operates. When the company knows the external factors that are likely to affect its operations, it can formulate more effective strategies for growing sales via the existing stores, new stores or even both.

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