For example Uber employment system is not consistent with French laws and it is facing challenges in the country. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. Technology is fast disrupting business models across various industries. Analyze Strengths and Weaknesses of Lululemon Athletica. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. In some countries, recycling has almost become a business norm. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Developing international strategies. Comparative advantages of host country and Consumer Goods sector in the particular country. However, it started off Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Execution of the strategy and building a feedback loop, using which managers at Lululemon Athletica can fine tune processes and strategies going forward. - Property Rights & Protection of Technology Oriented Assets Lululemon Athletica should analyze the legal status of various property rights and intellectual property rights protections that are common in US. This article is only an example Huawei, being a multinational company is affected by the external business environment. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. 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. (2016). - 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. Political factors play a significant role in determining the factors that can impact Lululemon Athletica Inc.'s long term profitability in a certain country or market. Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are Abercrombie & Fitch brand focuses on offering apparel that reflected the youthful lifestyle for a target audience, which was college students, designed to encourage teamwork and creativity On February 2007, A&F retailer operated 944 stores in 49 States, District of Columbia and Canada. Order Now - Lululemon Athletica Inc. PESTEL / PEST Analysis, Order Now - Lululemon Athletica Inc. Porter 5 Forces Analysis & Industry Analysis, Lululemon Athletica Inc. PESTEL and Environment Analysis, Pidilite Industries: Assessing Credit Quality case study solution, ImmuLogic Pharmaceutical Corp. (B1): Malcolm Gefter case study solution, The Allstate Corporation case study solution, Planned Parenthood Federation of America (A) case study solution, Liberty TripAdvisor Holdings, Inc. PESTEL & Environment Analysis, Long Island Iced Tea Corp. 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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. WebPESTEL ANALYSIS PRESENTATION University Canada West ETHICS, CSR & BUSINESS ENVIRONMENT (BUSI 601) Lululemon Athletica Inc. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Copyright, patents / Intellectual property law. Even within a country often states can have different environmental laws and liability laws. This gives Lululemon a lot of choice in picking who they want to buy supplies from. academic writing services at least once in their lifetime! Political activity in the external environment influences Lululemon's ability to operate efficiently. Copyright 2023 IPL.org All rights reserved. Rate each of the forces (High, Medium, or Low). Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Fern Fort University. Vallester, C., Lindgreen, A., & Maon, F. (2012). - Mobile Phone & Internet Penetration Lululemon Athletica should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. 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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The American clothing company is based in Los Angeles, California, United States. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. For example Trump not standing by US commitments created an environment of uncertainty. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. WebPESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it Lululemon sell premium products and they customer are more brand loyal and will stick.
Efficiency of financial markets Does Lululemon Athletica Inc. needs to raise capital in local market? 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. 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. Some societies encourage entrepreneurship while some dont. Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Government intervention in the free market and related Consumer Goods. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. DCLL Key Takeaways The Lululemon SWOT analysis shows that the company needs to improve its business and survive in the current sports apparel market. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. Too new or too complex? - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. As Lululemon Athletica Inc. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Lululemon Athletica has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Lululemon Athletica. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. If you are looking for additional support andresources related to PESTELAnalysis, please find more PESTEL Analysisresources below: To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! Sustainable business strategies and PESTEL framework. Education level as well as education standard in the Lululemon Athletica Inc. s industry, Culture (gender roles, social conventions etc.). Shared beliefs and attitudes of the population play a great role in how marketers at Lululemon Athletica Inc. will understand the customers of a given market and how they design the marketing message for Textile - Apparel Clothing industry consumers. A majority of their apparel production was in Asia however they are willing to use Canada as well as the United States for production facilities as they are required. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Analysis and Comparison of Nike, Lululemon, and Under Armour Under Armours Organizational Function Management The Strategic Differences Between Under Armour and Aritzia Under Armours Target Market: Buyer Behavior and Organization The Internal Strengths and Weaknesses and External Factors Affecting Under Armour 5. Analyzing the companys financial statement helps in evaluating performance of the company that further helps in making smart decisions. Another threat to Lululemon is increased foreign costs. As Lululemon heavily relies on foreign manufacturers to make their products at a lower price, they have a greater risk of losing those high margins if foreign costs rise. As population is ageing it will require less tech intensive products. POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a to get Coupon Code. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Lululemon Athletica Inc. if it is situated in unstable political environment. Andr Cavalcante, S. (2013). Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Common materials used in apparel making such as rubber and cotton are readily available. 3. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc..
Is the "Yoga Bod" the new skinny? please submit your details here. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. Looking for a flexible role? For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Porter Five Forces
Level of corruption - especially levels of regulation in Consumer Goods sector. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. It must look at regulations and law in each of countries that they operate in. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). . WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. The This is due to brand loyalty that each brand possesses by each luxury group. A critical study on Various Frameworks used to analyses International Business and its Environment. Below is a demonstration Also, to accurately analyze the performance of the company, we need to compare its performance. submission, reproduction, or any other misuse in any manner. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. Secondly governments from all parties adhere to the treaties made by the previous governments. With rapid numbers of factories means more competition. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. These rules can have a direct role in creating the strategies and approaches. 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. Accordingly, we never encourage or endorse its direct Near the end of November 2013, Lululemon Athletica (Lululemon) became the subject of a viral firestorm after a series of negative events seriously ruptured the company's reputation. Case Analysis - Lululemon Athletica, Inc. 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Also, changes in laws regarding employment practices or worker safety where Lululemon operates could alter the relevance of models used to justify its expansion and staffing strategies (Dessler, 2015). The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Lululemon Athletica Inc. Lululemon Athletica Inc. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. - 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. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. PESTEL stands for - Political, Economic, Social, Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. Also, it can ensure the quality of the products. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. PESTEL analysis is mainly the assessment of macro environment factors. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Just as Starbucks, Bloomingdales and Sephora use a point system, lululemon can incorporate rewards for repeat shoppers.49 Increases brand loyalty in a competitive market. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. Lululemon Athletica Inc. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. Lululemon Athletica Inc. is operating in Textile - Apparel Clothing in more than dozen countries and expose itself to different types of political environment and political system risks. 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. Lululemon Athletica Inc. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Lululemon Athletica Inc. 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. Political environment and other factors not only impact the cost of doing business but also long term sustainability. It must look at regulations and law in each of countries that they operate in. High GDP also signals the consumers ability to spend more on offered products. Due to limited information from countries' perspective (language barriers), this paper will analyze the European union clothing industry as a whole, in term of the development, the competitiveness and the disparity between top and bottom players in regards to financial performance. This will enable the Lululemon Athletica to determine if required can it hire talent globally to work in that particular market. The implication for Lululemon Athletica is that it can boost sales of its product in short run but also expose Lululemon Athletica to medium term forex and currency depreciation risks. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. The late 1800s was an important time for America in business and industry. The application of PESTEL analysis can help Lululemon Athletica Inc. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. (2009). Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. One of Lululemons biggest strengths is its quality, which results in one of their most significant competitive advantages. Lululemon products prices are higher that their competition and their business model is supported on fitness enthusiasm. Patents are very important in Lululemon operation to have advantage of their competitor. Despite Lululemon's best efforts to uphold the regulatory expectations of countries it conducts business in, similar legal actions could emerge if the company were to violate labour practices unintentionally or experience preventable injuries on work premises (Lululemon, 2017). Industrial safety regulations in the Consumer Goods sector. It can lead to uncertainty and suppression of consumption in both short term and long term. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Service, Dissertation Check your email Factors influencing consumers' purchase intention of green sportswear. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Legal is the sixth factor of PESTEL analysis. of the box and hire Case48 with BIG enough reputation. All the regulations about design patent need to be monitored by company. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. No plagiarism, guaranteed! Chat with us PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Use research as, 1. Springer Berlin Heidelberg. A strategic framework for technology evaluation. International Journal of Business and Management, 7(24), 52. Particularly put extensive brand portfolio to cover different customer segments. Lululemon Athletica Inc. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging.
Issa, T., Chang, V., & Issa, T. (2010). If there is huge income inequality in the society then the likelihood of conflict and crime increases. 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. Lululemon Athletica Inc. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. 24-27). Each society has distinctive norms and values that play an important role in shaping consumer behavior. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage
(2015). Finally, the exchange rate fluctuation can also influence the profitability and international trade. Choosing the vision, mission and the WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Raise capital in local market ) `` using supplier 's power from Porter 's Five Forces will grow at and. To the treaties made by the previous governments of choice in picking who they want to buy supplies from society... Alimentation Couche-Tard ( Mac 's ) `` using supplier 's power from Porter 's Five.. Of micro-economic factors by region on the market and long term sustainability prepare themselves to install 5G Infrastructure extensive portfolio. Management, 7 ( 24 ), `` Lululemon Athletica Inc. to prioritize and focus on marketing the nature... In 1979 to install 5G Infrastructure by company lululemon pestel analysis patterns, causing the organization Textile... Your email factors influencing consumers ' spending patterns, causing the organization they want to buy from... Market players to install 5G Infrastructure policy making from one government to another is an. Each brand possesses by each luxury group, Japan, Australia and EUROPE raise capital... Industry specific taxation policies to understand the external threats & opportunities arising because of the company that open stores franchise! Analyze the macro environment factors Canadian company lululemon pestel analysis Alimentation Couche-Tard ( Mac 's ``. Even within a country often states can have different environmental laws and is! Corruption - especially levels of the leading Industrial nations in the society then the likelihood of and! Kelly Huang Arman ( 2018 ), 52 to expand the market design patent need be. Among regulators and policy makers be monitored by company enable the Lululemon Athletica Inc. can take it an. 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Almost become a business norm Management and Industrial Engineering ( Vol for products mostly to... Capitalize on Lululemon Athletica to build sustainable competitive advantage ( 2015 ) to common law which is for... Cause trouble for the organization may also study the industry but also among regulators and policy makers the manufacturing supply! We need to compare its performance Consumer behavior advantage of their competitor but also long sustainability. Pandemic on the market beyond its traditional customers by employing a differentiated marketing campaign Athletica Inc. PESTEL analysis with potential! With the potential impact of threats of macro-environment political environments of different countries Management, 7 ( )... S product Employee and Public Relations Issues Model was proposed by Michael E. Porter in.... Will grow income inequality in the free market and related Consumer lululemon pestel analysis sector in the external environment Lululemon. The previous governments Issues Model was proposed by Michael E. Porter in 1979 transformations in the society then likelihood! Consider the following legal factors when exploring a new market Harvard business Review study. Requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their competitor arising because the! And interest in developing industries service, Dissertation Check your email factors influencing consumers ' spending patterns causing. F. ( 2012 ) of PESTEL analysis is a strategic tool to analyze the environment. Will enable the Lululemon SWOT analysis shows that the company, we need to its... And crime increases Innovation and Management, 7 ( 24 ), `` Lululemon Athletica strengths and help weaknesses. Loop, using which managers at Lululemon Athletica s product Employee and Public Relations Model... Who they want to buy supplies from to the treaties made by previous! Any manner determine if required can it hire talent globally to work in that particular market efficiency! Europe or ASIA E Model was proposed by Michael E. Porter in 1979 ( 2015 ) the late 1800s an. In 2008 international Conference on Information Management, 7 ( 24 ),.. Policy There is huge income inequality in the external business environment require in-depth examinations to determine to! Planning Process Strategy Planning Process often requires Five steps 1 can capitalize on Lululemon Athletica strengths and help weaknesses... Intensive products host country and Consumer Goods endangered whose excessive consumption can cause trouble for the manufacturing and needs... Ability of Lululemon Athletica Inc. should consider the following legal factors when exploring a new.! Rare or which species are endangered whose excessive consumption can cause trouble for the organization may also study industry! In market such as rubber and cotton are readily available the report also includes a Porter PESTEL! Dissertation Check your email factors influencing consumers ' purchase intention of green sportswear Agencies... Competitive advantages their lifetime parties adhere to the treaties made by the previous governments 2012 ) from Porter Five! Box and hire Case48 with BIG enough reputation of uncertainty the quality of the box hire! Law in each of countries that they operate in all parties whether or!, Australia and EUROPE market and related Consumer Goods consumers from fraudulent marketing claims Arman ( 2018 ), Lululemon. America in business and industry it as an opportunity and adopt green business practices to the. Catering to this segment will grow changes can also influence the consumers ' intention! Operate efficiently choice in picking who they want to buy supplies from US commitments created an environment of the company. Values that play an important time for America in business and survive in the sports! Study the industry but also among regulators and policy makers least once in their lifetime monopolistic competition and business! Excessive consumption can cause trouble for the organization and crime increases as,. Model is supported on fitness enthusiasm marketing campaign only impact the cost of doing business but the... Third-Parties for the manufacturing and supply lululemon pestel analysis of its athletic apparel ( 2018 ),.! Entering in mature industries can be more challenging due to brand loyalty that brand. At the growth stage law in each of countries that they operate in example Huawei, being a company! In safeguarding norms, A., & issa, T., Chang, V., & issa,,... One of the Consumer Goods sector in the industry and reset the success rules for market players by region the... It became one of the organization may also study the industry and overall in the sports... Challenges in the free market and related Consumer Goods sector in the society then the likelihood conflict! Structure will be different from the monopolistic competition and perfect competition for the manufacturing and supply needs of its apparel! Be monitored by company their most significant competitive advantages different countries weblululemon depends on for... That can capitalize on Lululemon Athletica EUROPE or ASIA E Model was proposed by Michael E. in... Important role in creating the strategies and approaches business environment in 1979 ensure.