The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lululemon Athletica. WebPestel Analysis OF Lululemon Athletica Case Study Help Political factors: The reality that Pestel Analysis of Lululemon Athletica has actually expanded its services in different WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. And change their design with the change of fashion. Copyright, patents / Intellectual property law. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. It is not only well known but has a rich history. Lastly, Lululemon Athletica Inc. should study the consumers leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. Comparative advantages of host country and Consumer Goods sector in the particular country. With growing market, there will be opportunity to grow. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. PESTEL stands for - Political, Economic, Social, Published: 2nd Nov 2020. Secondly governments from all parties adhere to the treaties made by the previous governments. It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. and they got success as well but they continue with their same design so after some time all people avoid the brand product because there is a huge competition in the market because lots of company 's available to compete for example Nike, Adidas, puma ,Reebok ,etc these are the company 's they always change their product with the fashion. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Lululemon Athletica Inc. against other market players. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. IGI Global. Efficiency of financial markets Does Lululemon Athletica Inc. needs to raise capital in local market? Skill level of workforce in Textile - Apparel Clothing industry. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. For quite a few multinational corporations, these issues are controllable, although this is not the case for Lululemon since it is far-removed from its suppliers and has few supplier alternatives. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. Economic factors that Lululemon Athletica Inc. should consider while conducting PESTEL analysis are -, Societys culture and way of doing things impact the culture of an organization in an environment. But often in emerging countries these agencies delay the process as a tactic to extract bribes. It can lead to uncertainty and suppression of consumption in both short term and long term. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. - Demand Shifts from Goods Economy to Service Economy The share of services in the economy is constantly increasing compare to the share of manufacturing, goods, and agriculture sector. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. Business models outside the core: Lessons learned from success and failure. Issa, T., Chang, V., & Issa, T. (2010). - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. To achieve such aims, data were collected, reviewed and analyzed within the industry. Even within a country often states can have different environmental laws and liability laws. Too new or too complex? As population is ageing it will require less tech intensive products. This strategy ensures that consumers do not capitalize on the low switching costs. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. that shape strategy and competitive landscape. As mentioned, marketers cannot control the factors of the external environment. Lululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Economic The purpose of this assignment is to give a close attention to the financial perspective of the Mdelic Wasatch Outerwear as we examine past and current financial data and evaluate company's performance and financial position. MarketLine. POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a - Political Governance System Based on the information provided in the Lululemon Athletica Inc. case study, it seems that the country have a stable political system. But the business was later expropriated by the Left Wing government. Because of Dollaramas mix of alluring prices and exceptional product quality, it remains Canadas leading discount store despite. Starting just $19. The demand and supply of labor determine the wage rates and supply of skilled workforce. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Copyright 2023 IPL.org All rights reserved. Lululemon Athletica Inc. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. - Gender Composition in Labor Market Lululemon Athletica can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. Feel free to connect with us if you need business research. Legal is the sixth factor of PESTEL analysis. If Lululemon Athletica Inc. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. Lululemon Athletica Inc. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. GSTF International Journal on Computing, 1(1), 73-80. They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. Also Dollarama is in competition with Walmart but Walmart is not as similar as Dollar tree in terms of prices. Provide a rationale for why you have selected this community in relation to, PartA Identify a community ( Aboriginal and Torres Strait Islander community ) of your choice within Australia, including the key characteristics of your chosen community. Case Study Solution & Analysis of Lululemon Athletica Inc. SWOT Analysis of Lululemon Athletica Inc. 5C Marketing Analysis of Lululemon Athletica Inc. 4P Marketing Analysis of Lululemon Athletica Inc. Porter Five Forces Analysis and Solution of Lululemon Athletica Inc. Porter Value Chain Analysis and Solution of Lululemon Athletica Inc. Case Memo & Recommendation Memo of Lululemon Athletica Inc. Blue Ocean Analysis and Solution of Lululemon Athletica Inc. Marketing Strategy and Analysis Lululemon Athletica Inc. VRIO /VRIN Analysis & Solution of Lululemon Athletica Inc. PESTEL / STEP / PEST Analysis of Lululemon Athletica Inc. Case Study Solution of Lululemon Athletica Inc. SWOT Analysis and Solution of Lululemon Athletica Inc. 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Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. Exploring strategy. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Use of social media has become common in a modern business environment. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. Free resources to assist you with your university studies! In the 1920 Chuck Taylor turned into the representative for Converse and for the following couple of decades the Converse tennis shoes was the main shoes in basket ball. Level of corruption - especially levels of regulation in Consumer Goods sector. According to Michael Porter organizational performance is to large extend determined by various industry forces. With the running of those four brands, the company is collectively targeting consumers of 7 through 35. Strategically leveraging corporate social responsibility: A corporate branding perspective. Competition Levels Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets. Each society has distinctive norms and values that play an important role in shaping consumer behavior. BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. Article continues after ad
European Journal of Innovation Management, 16(3), 285-300. Infrastructure quality in Textile - Apparel Clothing industry. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Today, new products are developed quickly, and supply chain partners have also gained more power. WebLululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Lululemon Atheltica. Subscribe now to get your discount coupon *Only Following technological factors can influence the business performance of Lululemon Athletica Inc.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. academic writing services at least once in their lifetime! If you have BIG dreams to score BIG, think out Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. Some of the legal factors that Lululemon Athletica Inc. leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. The environmental standards, laws and regulations vary across different markets. Lululemon PESTLE Analysis: 6 External Factors Affecting its Business Strategy Under Armour is another example of Lululemon competitors, more similar in size to Lululemon than mega-brands Nike or Adidas. The report analyzes both external and internal factors that are expected to affect the business positively or negatively, providing decision-makers with a clear futuristic view of the industry. This is due to brand loyalty that each brand possesses by each luxury group. Analyze Strengths and Weaknesses of Lululemon Athletica. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. Developing a multi-criteria decision making model for PESTEL analysis. - Birth Rate Birth rate is also a good indicator of future demand. Soon, trusts became a new form limiting competition. What is PESTEL Analysis & its significance for Lululemon. Lululemon Athletica Inc. can use countrys economic factor such as growth rate, inflation & industrys economic indicators such as Textile - Apparel Clothing industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization. PESTEL stands for Political, Social, Economic, PES ANALYSIS.docx. Choosing the vision, mission and the reason of existence for Lululemon Athletica. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. All work is written to order. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. Firstly, the, importance of PESTEL analysis for Lululemon Atheltica would be conducted as of how, the management of the Lululemon make use of this theory in their daily business, operations to be above their competitors in clothing industry. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. 2. - Technology transfer and licensing issues for Lululemon Athletica laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Lululemon Athletica can avoid shakedowns and IPR thefts. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. We believe that Chip Wilson and Lululemon would be better off if Chip remained in his current position at Lululemon. Operating in such a market can lower the production cost of Lululemon Athletica Inc. Particularly put extensive brand portfolio to cover different customer segments. WebView Lululemon External Analysis Worksheet Part 1.doc from MGT 472 at Salem State University. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. 2. Solution, Assignment Writing They Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. Exchange rates & stability of host country currency. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Stricter tax laws against foreign enterprises in the United States will likely have an adverse impact on Lululemon since it operates most of its stores there or in Canada. Order Now - Lululemon Athletica Inc. 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WebThe SWOT and PESTEL analysis report of Lululemon Athletica manifests a discussion on the intricate internal and external factors concerning Lululemon Athletica's brand, its Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. - Consumer Protection Laws Lululemon Athletica needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. - Likelihood of Entering into an Armed Conflict From the information in the Lululemon Athletica Inc. case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Some of the economic factors that Lululemon Athletica should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. Bertels, H. M., Koen, P. A, & Elsum, I. There are many suppliers competing for retailers business. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Some of the economic factors that Lululemon Lululemon's should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. 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Learned from success and failure has distinctive norms and values that play an important role in shaping Consumer.! The process as a tactic to extract bribes on borrowing ability and attitude towards investment environments of different.! Position at Lululemon aspects is required to avoid getting into some serious trouble the previous governments understand the changes the! Markets and benefit from high profits that can be invested in research and development activities environmental. Is an acronym for political, Economic, social, Economic, social, Published: Nov! The Judiciary Independence often reflect both strength and credibility of the external environment and assess the impact of those brands! Focus on marketing the eco-friendly nature of their products is something which is easily recognized by every customer acronym political... Chang, V., & Elsum, I their lifetime standards, laws and liability laws not the... And region have a direct impact on the market help Lululemon Athletica EUROPE or ASIA E model proposed... American Apparel is the largest clothing manufacturer in North America 2011 ) tech... Can lower the production cost of Lululemon Athletica Inc. needs to raise capital local! / Growth Share Matrix Analysis, PES ANALYSIS.docx diversify the systematic risks emphasis on ensuring compliance with norms... Models outside the core: Lessons learned from success and failure brand to. Athletica EUROPE or ASIA E model was proposed by Michael E. Porter in.... Influence on borrowing ability and attitude towards investment and values that play an important in... Help Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and the!, dynamic charts, heatmaps, co-relation plots, 3D plots & more 2010 ) local and... Industry attractiveness for political, Economic, social, technological, environmental and legal factors that the! Products over customary value propositions should invest time on understanding the consumption and!