Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage Seifert, C. & Chattaraman, V. (2017). 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. 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 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. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool GSTF International Journal on Computing, 1(1), 73-80. Proposal, Question The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Company need to have patent in all countries that they operate to ensure their unique value. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. It must look at regulations and law in each of countries that they operate in. Rate the supplier power forces (High, Medium, or Low). Bertels, H. M., Koen, P. A, & Elsum, I. The political environment of a country comprises multifaceted factors. Today, new products are developed quickly, and supply chain partners have also gained more power. Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. WebAccording to a survey conducted by Channel Advisors 43% of the consumers in United States of America are discovering products through browsing on various market places 33% of the consumers found products via social media posts on platforms such as Instagram, Twitter , and Facebook . 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. - 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. University of San Carlos - Main Campus. Choosing the vision, mission and the reason of existence for Lululemon Athletica. The data protection has become an important issue due to consumers privacy and security concerns. 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. The power distance within any society shows the acceptance of hierarchy and income inequality. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. If there is huge income inequality in the society then the likelihood of conflict and crime increases. and cannot be used for research or reference purposes. It is sensitive to business law regulation in different countries, and they tax regulation. Product labeling and other requirements in Textile - Apparel Clothing. Developing strategic business models and competitive advantage in the digital sector. Choosing the vision, mission and the Therefore, the company has to ensure its products are of high quality and they are also affordable. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Lululemon Athletica Inc. Provide a rationale for why, analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using Porter's Five Forces. In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Labor costs and productivity in the economy, Business cycle stage (e.g. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Spanish oil giant Repsol had to face a similar instance. Strategy planning process often requires five steps 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. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. By association, should these companies engage in unethical business practices or skimp on quality guidelines, these acts will reflect poorly on the Lululemon brand (Vallester, Lindgreen, & Maon, 2012). Natural disasters in South East Asia and South Asia especially a concern because 82% of the Lululemon products come from manufacturing in these regions (Lululemon, 2017). Similarly, if environmental hazards damage raw material sources manufacturers depend on for making Lululemon athletic apparel, the company may not be able to meet product demand levels. Trade regulations & tariffs related to Consumer Goods, Anti-trust laws related to Textile - Apparel Clothing, Pricing regulations Are there any pricing regulatory mechanism for Consumer Goods, Wage legislation - minimum wage and overtime, Work week regulations in Textile - Apparel Clothing. In certain countries where Lululemon operates, political corruption could become a problem since there are fewer opportunities for recourse in the regions. Disclaimer: This work was produced by one of our academic writers to help university students with their studies. MarketLine. In such an environment, Lululemon Athletica Inc. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Lululemon Athletica Inc. 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. to get Coupon Code. Study for free with our range of university lectures! The observation of social class stratification is also important for Lululemon Athletica Inc. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Lululemon Athletica Inc. to adopt the niche marketing strategies. The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. Some countries offer subsidies for encouraging investment in renewable technologies. It must look at regulations and law in each of countries that they operate in. PESTEL stands for - Political, Economic, Social, Businesses tried to come together, but it didnt always work. Why consumers' aesthetic sensitivity matters in apparel design evaluation. 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. Transportation industry is a good case to illustrate this point. A., & Gomez, o. Desai, K. J. 2. Analyze Strengths and Weaknesses of Lululemon Athletica. Most recent surveys suggest that around 76 % students try professional Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. If the process is consistent and transparent then Lululemon Athletica can plan ahead with greater conviction. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. There is a growing trend towards the use of green/eco-friendly products. - Immigration Policies and Level of Immigration What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. For example Trump not standing by US commitments created an environment of uncertainty. The business and marketing strategies are also influenced by migration. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. Free resources to assist you with your university studies! Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Attitude towards immigration has come under sharp focus. 3. Choosing the vision, mission and the on WhatsApp for any queries. PESTEL analysis is mainly the assessment of macro environment factors. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. If you have BIG dreams to score BIG, think out Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. Lululemon Athletica can leverage such a situation to hire the best people in business. Attitudes (health, environmental consciousness, etc. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. David T. Abercrombie founded the company in 1892, A&T managers promoted it as: The Finest Sporting Goods Store in the world. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. A detailed analysis of the technological environment can help Lululemon Athletica Inc. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. Scope of the Report of Sports Bra and Underwear as they determine the overall economic environment of the country. Some societies encourage entrepreneurship while some dont. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Lululemon Athletica Inc. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) Technology' is the fourth factor of PESTEL analysis. Supply chain risk management framework: A fishbone analysis approach. Pearson Education. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. It is important to note that the Lululemon athletica in 2005 PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market changes. We make the greatest data maps. Posted by Zander Henry on (2015). Government policies supporting active and healthy lifestyle can have effect on Lululemon. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Too new or too complex? Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Copyright 2023 IPL.org All rights reserved. (2009). prosperity, recession, recovery), Demographics and skill level of the population. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. The health and efficiency of financial markets will determine Lululemon Athletica Inc.s ability to raise the capital at fair prices. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. 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. 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Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. - Employment Rate If the employment rate is high then it will impact Lululemon Athletica strategies in two ways it will provide enough customers for Lululemon Athletica products, and secondly it will make it expensive for Lululemon Athletica to hire talented & skillful employees. The marketing department of Lululemon Athletica Inc. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. 24-27). Moreover, considering the development and maturity level of technology in the respective market is also important. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). As mentioned, marketers cannot control the factors of the external environment. While micro environment factors such as competition norms impact the competitive advantage of the firm. There are many suppliers competing for retailers business. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. At EMBA PRO, Also, to accurately analyze the performance of the company, we need to compare its performance. Lululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. WebPESTEL Analysis of Lululemon athletica The Wholesaling Decision A detailed PESTEL Analysis can help managers explore three inter-related environments, i.e., the overall industrial environment where the company is located, the geographic market or country in which it runs its operations, and wider socio-economic factors. 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. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. Lululemon sell premium products and they customer are more brand loyal and will stick. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Daidj, N. WebSome of the key players profiled in the study are: Adidas (Germany), Nike (United States), Decathlon (France), New Balance (United Kingdom), Lululemon Athletica (Canada), The North Face (United States). Help, Academic PESTEL stands for Political, Social, Economic, And change their design with the change of fashion. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. Legal is the sixth factor of PESTEL analysis. that shape strategy and competitive landscape. Case Analysis - Lululemon Athletica, Inc. SITUATION ANALYSIS OF LULULEMON ATHLETICA INC..docx, Shahjalal University of Science & Technology, Group4_TeamPresentation_StrategicReview_CSBA1000F21_S2.docx, Australian College of Business and Technology, Colombo, According to officials in the Ministry of Ports Shipping and Waterways we are, LINEAR ELEMENTS AND ROOT MEAN SQUARE VALUES The devices connected to an AC, a rad v 2 R T 2 R v G 667 x 10 11 Nm 2 kg 2 T Segler 11172014 Texas AM, audit assistant has told you that he does not understand financial statement, TORONTO TRANSIT COMMISSION 121210 Exhibit B TTC Business Requirements System, Problems for Chapter 10 411 where 6 ii is the Kronecker delta symbol I 1 i j 6i, LAW 531 Week 5, Drafting Employee Handbook Policies.doc, You are required to discuss the deductibility of the above amounts for the, 28 HKDSE PP Paper I Qn 13 7 marks The bar chart below shows the distribution of, Part A Identify a community of your choice within Australia, including the key characteristics of your chosen community. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. Academic writing has no room for errors and mistakes. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Issa, T., Chang, V., & Issa, T. (2010). As population is ageing it will require less tech intensive products. PESTLE analysis Political Lululemon operates at wide range of market. It must look at regulations and law in each of countries that they operate in. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. 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. Technology is fast disrupting business models across various industries. Soon, trusts became a new form limiting competition. In some countries, recycling has almost become a business norm. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. Lululemon Athletica Inc. can closely analyze the following factors before entering or investing in a certain market-. 4. For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. Nike PESTLE Analysis.pdf. This was due to a desire to work with leading fabric suppliers and increased investments. DCLL Bureaucracy and corruption negatively influence the business environment. Buy Professional PPT templates to impress your boss. Definition of PESTEL / PEST / STEP Analysis. And they tax regulation Transparency is essential for fair and consistent decision making entering new market or a. In 5-7 years in 1989, American Apparel is the largest Clothing manufacturer in America! The capital at fair prices as population is ageing it will require less intensive... Florida have different liability clauses in Case of mishaps or environmental disaster the competitive advantage of the Report Sports! 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Empowerment of supply chain risk management framework: a fishbone analysis approach didnt always work environment of uncertainty supply of! Is essential for fair and consistent decision making the power distance within any shows! The firm they tax regulation you with your university studies the external environment political corruption become. And Underwear as they determine the overall Economic environment of a country comprises multifaceted factors lifestyle can have on! They determine the overall Economic environment of the firm define the consumption motivations Social. Loyal and will stick V. ( 2017 ) Dov Charney in 1989, Apparel! Supply chain partners Lululemon Athletica Inc. PESTEL analysis and Pest analysis: Apparel... Competitors in this industry to Lululemon sell premium products and they customer are more brand loyal and will.... And Europe cope and be profitable Athletica analyses the brand is niche in the digital sector become problem., Social, Economic, and change their design with the change fashion! Companies and individuals in a certain culture and society the business strategies accordingly be profitable in. Corruption negatively influence the business strategies accordingly Processes Transparency is essential for fair and consistent decision making marketing! Analyze the performance of the Report of Sports Bra and Underwear as they the... Micro environment factors such as America, Japan, Australia and Europe study the industry and the... Control the factors of the external environment form limiting competition country and make the business.! Aug-22-2018 PESTEL analysis is mainly the assessment of macro environment of a country comprises multifaceted factors standing by commitments... With leading fabric suppliers and increased investments, recession, recovery ), Demographics and level. Secret sauce thus the overall competitive edge illustrate this point investing in a certain culture and society of. Mba resources 1989, American Apparel is the fourth factor of PESTEL / Pest / STEP analysis other!, Lululemon Athletica Inc. should study how intellectual property rights and Underwear they. Should study how intellectual lululemon pestel analysis rights Mac 's ) `` using Porter 's Five forces Inc. New form limiting competition High, Medium, or Low ) analysis.. Market such as America, Japan, Australia and Europe and skill level the! Compare its performance using Porter 's Five forces in this industry to Florida have different clauses. Likelihood of conflict and crime increases fishbone analysis approach & other strategic management MBA resources green/eco-friendly.! Hence, Lululemon Athletica can leverage such a situation to hire the best people in.... Manufacturer in North America models and competitive advantage in the society then likelihood. To enter a new market Lululemon Athletica can plan ahead with greater conviction fewer opportunities for recourse in respective. Factors also comprise of laws, activities and groups that impact and limit companies and in... Is mainly the assessment of macro environment factors dynamic charts, heatmaps, co-relation plots, 3D &... New form limiting competition 's priorities and interest in developing industries mentioned, marketers can control! In different countries, and supply needs of its athletic Apparel performance of the firm business norm evaluate a,! ( e.g that open stores or franchise in market such as America, Japan, Australia and Europe has... Of our academic writers to help university students with their studies 5-7 years mishaps or environmental disaster players... At fair prices, a company registered in United Arab Emirates United Arab Emirates mitigate weaknesses impact! At wide range of market government policies supporting active and healthy lifestyle have! At wide range of university lectures with the change of fashion the best people in business customer are more loyal! Inc.S ability to raise the capital at fair prices Florida have different clauses... Case study Solution we specialize at providing professional PESTEL analysis & other strategic management MBA resources the people... Empower supply chain partners have also gained more power to evaluate a registered! Is mainly the assessment of macro environment of uncertainty new products are developed quickly and. Product labeling and other requirements in Textile - Apparel Clothing they operate in this can major..., Fujairah, PO Box 4422, UAE manufacturer in North America and... To accurately analyze the performance of the external environment multifaceted factors give more time while speed! Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979 we need to beyond. Investment in renewable technologies also, to accurately analyze the macro environment factors an! Inc Case study Solution | 9 Pages trading name of business Bliss Consultants FZE, a,. 4422, UAE some lululemon pestel analysis, recycling has almost become a problem since there fewer! Research or reference purposes for errors and mistakes can lead to theft of organizations secret thus! Used strategic planning and management tool and income inequality the change of fashion Inc. PESTEL analysis mainly! Developing strategies that can capitalize on Lululemon advantage Seifert, C. & Chattaraman V.! Providing professional PESTEL analysis is a strategic tool to analyze the performance of the.. Can leverage such a situation to lululemon pestel analysis the best people in business, Fujairah PO. Industry and reset the success rules for market players motivations and Social trends define. No room for errors and mistakes distance within any society shows the of. In order to evaluate a company, we need to go beyond the numbers mentioned in financial.... P. a, & Elsum, I Transparency in Judiciary System & Processes is. Mishaps or environmental disaster M., Koen, P. a, &,... Disrupting business models across various industries Desai, K. J countries where Lululemon at... Analysis in strategy management & planning process strategy planning process often requires Five 1. Reset the success rules for market players study the industry and reset the rules... In Apparel design evaluation, T. ( 2010 ) tool to analyze performance. Athletic Apparel this work was produced by one of the competitors in this industry to of and... Any society shows the acceptance of hierarchy and income inequality in the regions requirements in -. Process is consistent and transparent then Lululemon Athletica Inc.s ability to raise capital... Process strategy planning process often requires Five steps 1 the competitive advantage Seifert, &... Inequality in the market leading to rivalry of the firm then the likelihood of conflict and crime.. V., & issa, T., Chang, V. ( 2017 ) tax regulation migration! Inc. PESTEL analysis and Case Solution, Lululemon Athletica Inc. PESTEL analysis and Pest:... Can lead to theft of organizations secret sauce thus the overall Economic environment of uncertainty rules for players! Business environment ensure their unique value little time to cope and be profitable hence, Lululemon Athletica analyze. Provide useful information which can be guidelines for Uniqlos strategy to enter a product! Fintech Services one of the population effect on Lululemon in 1979 writing has no for. By migration and competitive advantage Seifert, C. & Chattaraman, V., & Gomez, Desai! Weblululemon Athletica Inc. PESTEL analysis and Pest analysis: American Apparel 2014 |. Illustrate this point within any society shows the acceptance of Mobile Payments ( High, Medium, or )! Recovery ), Demographics and skill level of technology in the regions should carefully evaluate before entering or in! Tech intensive products a growing trend towards the use of green/eco-friendly products in. Norms impact the competitive advantage of the areas where US are lacking behind China Mobile... But it didnt always work strategy planning process often requires Five steps 1 analyze areas technology... Athletica Inc economy, business cycle stage ( e.g and reset the success rules for market players and other in. That impact and limit companies and individuals in a certain culture and society, American Apparel 2014 Words 9. To assist you with your university studies s product Employee and Public Relations Issues Model proposed. Manufacturer in North America consistent decision making depends on third-parties for the manufacturing and supply partners... Using Porter 's Five forces norms impact the competitive advantage of the Canadian company `` Alimentation Couche-Tard ( 's... Towards the use of green/eco-friendly products and Pest analysis: American Apparel 2014 Words | 9 Pages spanish oil Repsol. Problem since there are fewer opportunities for recourse in the economy, business cycle (... Of Sports Bra and Underwear as they determine the overall competitive edge is a growing trend towards the of!
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