Kimberly-Clark (KMB)

New, cheaper competitors are stealing Kimberly-Clark's market share, and will continue doing so. While having to compete with lower prices, Kimberly-Clark must also spend large amounts on marketing budgets, and this combined squeeze will reduce profits even more. Kimberly-Clark really cannot compete in today's market and will likely lose out.

Rising oil prices and raw material costs will further reduce already low profit margins on most of Kimberly-Clark's products or will drive up prices which would reduce sales. Between 2004 and 2005, operating profit declined by nearly 8% for K-C, and this trend will likely continue as Template:OPEC continues to keep gas prices high and US refineries continue to experiene major problems.

Besides the automated toilet paper dispenser, which will likely not come out for a several years (and, face it, it's a toilet paper dispenser), Kimberly-Clark has not had any major breakthroughs in new designs for several years. Despite heavy R&D research, nothing new has come out, and so on top of its other losses, Kimberly-Clark must also invest more in research. Profits will go even lower, and a new development is likely years away.

New, cheaper competitors are stealing Kimberly-Clark's market share, and will continue doing so. While having to compete with lower prices, Kimberly-Clark must also spend large amounts on marketing budgets, and this combined squeeze will reduce profits even more. Kimberly-Clark really cannot compete in today's market and will likely lose out.