Sample Essay on PESTEL Analysis of Carter’s Inc.

As a retail industry leader in kids and young children’s clothes apparel, Carter’s Inc. continues to withstand potential negative effects of political, economic, social, cultural, technological, ecological and legal aspects of its organization.

However the success of Carter’s Inc. calls for continued analysis of the retail industry environment because PESTEL factors keep changing over time. Therefore, they pose challenges for the organization while others present opportunities.

Carter’s Inc. a retailed of children’s apparel and accessories including body suits, shoes, toys, dresses and one piece operates online  across the US, UAE, UK, Argentina, Bolivia, Costa Rica, Japan, Saudi Arabia and Singapore among other countries. The company must therefore take advantage of opportunities in its macro environment to protect itself from possible threats. Therefore, by using PESTEL analysis of Carter’s Inc. company managers and leaders can effectively determine factors to prioritize in its strategic development.

Carter’s Inc. has stores in different parts of the globe and it considers the political environment in such countries based on prevailing government policies. This means that political active interest groups affect the operations of the company and are very important. The company is therefore affected by the following political issues

Political stability in many countries in operating in therefore, offering an opportunity for the company to thrive

Carter’s Inc. also enjoys political support, especially for globalization hence, an opportunity for growth

Political pressure for better salaries and this is a threat to the company

Therefore, Carter’s Inc. must address the threat of higher wages and it is a major threat because the company must minimize its expenditure in regards to its cost leadership strategy.

Carter’s Inc. is under immense pressure due to constantly changing economic changes. Any such change affects company revenues significantly. Based on PESTEL analysis of Carter’s Inc. model, these are some of the economic issues affecting the macro environment of the company

Continued growth in developed and developing countries and it offers an opportunity for the company to sell its products.

Stable major economies offering an opportunity for Carter’s Inc. to operate smoothly and efficiently

Reduced unemployment rate in many economies, hence, an opportunity to increase its sales volume

All these economic factors undoubtedly reveal that Carter’s Inc. should explore all market opportunities across the globe. It needs to focus on fast growing economies of developing countries which have high demands for its products and services.

The sociocultural factors in Carter’s Inc. business environment affects client perception and preferences. From this PESTEL analysis model the company needs to exploit the opportunities and increase its product volume to satisfy the needs of its clients.

Healthy lifestyle trend, presenting an opportunity for growth

Cultural diversity, presenting an opportunity because Carter’s Inc. offers a wide range of kid’s apparel

Carter’s Inc. operates online and it still needs to address technological trends for it to operate smoothly and realize a good profit. In the context of PESTEL analysis, technologies tend to affect its retail industry’s competitive landscape. These are external technology issues affecting the remote environment of Carter’s Inc.

Increase in business automation presenting an opportunity for growth

Big data, presenting an opportunity to grow its brand visibility even further

An Increase in the use of mobile devices and the internet by many of its clients, thus, presenting an opportunity for the company to increase its sales

Ecological factors are quite significant in the Carter’s Inc. operations. Environmental conservation is a major concern and principle across different parts of the globe and the company enjoys

Business sustainability trend hence, an opportunity

Carter’s Inc. offers environmentally friendly apparel and accessories therefore, an opportunity

Therefore, the company needs to further enhance its operational efficiency. Note that technological advancement helps to increase business efficiency. Improved product standards help to increase sales and strengthen the company as it tackles ecological changes.

Carter’s Inc. is subject to laws and regulation requirements in the countries it operates in. many countries impose limits on retail companies and the organization, therefore has to deal with

Tax law reform and it is a threat

Employment regulations, presenting an opportunity as it can exploit opportunities concerning employment.

PESTEL analysis of Carter’s Inc. shows that the company has more opportunities compared to threats in its external environment. The company must therefore take advantage of the opportunities and employ the right approaches to address threats to expand its operations across the globe and enjoy increased profitability.

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