Cleaning Service Company offers cleaning services to various types of premises like households, offices, banks, schools, factories, and the glass of skyscrapers. According to an estimate, there are approximately 1063988 cleaning companies in the USA and they have annual sales of approximately over 20 billion USD. The cleaning service market has a global net worth of approximately over 63.2 billion USD. Today, we’ll discuss the PESTLE analysis of Cleaning Company; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Cleaning Company
Some of the main political factors in the Cleaning Company PESTLE analysis are as follows;
I-Government Regulations
The waste management and waste disposal government regulations are very strict for Cleaning Service Companies. They vary from state to state and country to country. However, the Cleaning Service Companies should comply with government regulations of different countries. Properly disposing of the waste and using the right disinfectants would help them to smoothly perform their business operations.
II-Taxation Policy
The government taxation policy for the Cleaning Service Companies keeps changing quarterly and semi-annually depending on the economic conditions of the country. For instance, the increase in taxes would decrease the profit margin of the Cleaning Service Companies. They need to keep an eye on the profit margins of businesses and companies.
III-Political Stability
A stable political environment plays a key role in the growth and sale of businesses and companies. In case of political turmoil, violent incidents, roadblocks, and procession; people, businesses, and the community would go into the survival mode and they don’t care about the cleaning luxury services anymore.
Economical Factors Affecting Cleaning Company
Some of the main economic factors in the Cleaning Company PESTLE analysis are as follows;
I-Disposable Income
The disposable income of individual householders, businesses, and companies plays a key role in the sale and growth of Cleaning Service Companies. For instance, when people and companies have higher disposable income, they would spend it on luxury services like cleaning to make their workplace look beautiful and charming.
II-Interest Rate
The interest rate of the central and state banks is a key economic indicator and it impacts the sale of businesses and companies. Higher interest rates would increase the cost of loans; it becomes highly difficult and expensive for Cleaning Service Companies to get loans from the bank. As a result, they can’t expand their business operation and buy the latest equipment or hire a new workforce.
III-Economic Crisis
The global economy has been going through an economic recession for the past few years. The sales of Cleaning Service Companies dropped significantly in recent years due to the lockdown and shutdown of business and increasing unemployment. Cleaning service is a luxury that they can’t afford in the difficult time.
Social Factors Impacting Cleaning Company
Some of the main social factors in the Cleaning Company PESTEL analysis are as follows;
I-Busy Lifestyle
Nowadays, people are leading a busy lifestyle where husband and wife both are working. Since neither of them is at home to clean the house, many couples and partners employ Cleaning Service Companies to clean their houses, and car porches, and mow the lawn, and the windows. However, businesses and companies also hire cleaning companies to clean their workplace and factories during the night.
II-Cleanliness Trend
The consumer market and the young generation have shown a great interest in the cleanliness of the environment, public spaces, roads, and streets. In fact, they are willing to pay extra to sit and spend time in a clean space where they can feel healthy and comfortable. Such trends are increasing the growth and sales of Cleaning Service Companies.
Technological Factors Affecting Cleaning Company
Some of the main technological factors in the Cleaning Company PESTEL analysis are as follows;
I-Advanced Technology
Many tech companies are developing the latest cleaning robots, vacuum cleaners, and other tech-based cleaning tools and equipment. They have the capability to clean the house and function on their own, and it decreases the need to hire workers for cleaning. As a result, it decreases the need for Cleaning Service Companies, and that’s why it has decreased their sales and revenue.
II-Mobile Application
The Cleaning Service Companies should develop mobile applications and web platforms to connect and engage with their targeted customers. It allows them to build an online portfolio by offering various types of cleaning services to individuals and businesses along with the price range. Customers could easily check out various types of services and buy the required cleaning service.
Legal Factors Impacting Cleaning Company
Some of the main legal factors in the Cleaning Company PESTEL analysis are as follows;
Regulatory Compliance
Cleaning Service Companies should comply with government regulations of different countries. It comprises labor laws, waste management, waste disposal regulation, and other legal requirements. Regulatory compliance would help the company to smoothly perform its operations without any disruption and delays.
Environmental Factors Affecting Cleaning Company
Some of the main environmental factors in the Cleaning Company PESTEL analysis are as follows;
Sustainability Initiative
Cleaning Service Companies have made a strong commitment to environmental sustainability. They are cleaning up the environment, using organic disinfectants for cleaning, and limiting the usage of chemicals, and renewable energy to decrease the carbon emission rate.
Conclusion: Cleaning Company PESTLE Analysis |PESTEL Analysis of Cleaning Company |External Environmental Analysis of Cleaning Company | Strategic Analysis of Cleaning Company
After an in-depth study of the pestle analysis of Cleaning Company; we have realized that the Cleaning Service business is a top-growing venture. If you are learning about the Cleaning Company PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
