The Clorox Company SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Fuel growth by reducing waste: Enterprise wide initiatives, including light weighting of charcoal briquettes, renegotiated international ocean freight rates and a number of other administrative improvements, contributed to $109 million in cost savings. Through the new Ignite strategy Clorox will focus on generating fuel to reinvest in brands. The company will increase annual cost savings by expanding the funnel as it drives the necessary fuel to generate growth. The company will stress on technology, integrated design and sustainability and target an annual EBIT margin growth goal of 175 basis points.

2. Diversify to expand: Clorox acquired Renew Life and evolve its portfolio into the digestive health space, a $10 billion category expected to grow 7 percent annually. Clorox must explore other diverse leading brands which they should consider for acquisition. The company manipulated its reportable sectors following operational and systems integration in the fourth quarter of fiscal year 2020. The Digestive Health and Dietary Supplements business units were combined into a new Vitamins, Minerals and Supplements business unit. Additionally, the Home Care business units were combined to create the Cleaning business unit. The new Health and Wellness reportable sector will make up due to the shared economic and qualitative characteristics of the newly established business units, along with the Professional Products business unit.

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Rising environmental concerns: Climate change is not the only problem we are facing, water shortage, loss of biodiversity and waste management are also pose major concerns which we need to administer for a sustainable future. The rising interest in business environmentalism is an opportunity for Clorox to improve its environmental programs to attract consumers concerned about the environment. The Clorox Company must consider product innovation and internal business processes to further reduce business environmental impact. These efforts should also support the company’s ability to satisfy increasingly complex environmental programs. Such external factor is an opportunity for the company to improve its competitive advantage through CSR. In 2020, the company’s Glad brand launched “Glad to be Green”, a range of sustainable food and protection and trash bag products including 50% plant-based bags and wraps, compostable trash bags and trash bags from 95% recycled material in Australia and New Zealand. The food protection assortment also uses packaging which are made from 70% recycled materials and they are 100% recyclable.