All work is written to order. Even within a country often states can have different environmental laws and liability laws. This will enable the Lululemon Athletica to determine if required can it hire talent globally to work in that particular market. Taxi industry is now dominated by players like Uber and Lyft. - 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. Solution, Assignment Writing GSTF International Journal on Computing, 1(1), 73-80. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Class structure, hierarchy and power structure in the society. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Finally, the exchange rate fluctuation can also influence the profitability and international trade. - 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. as they determine the overall economic environment of the country. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. With growing market, there will be opportunity to grow. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. 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. It is sensitive to business law regulation in different countries, and they tax regulation. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. - 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. PESTEL analysis is mainly the assessment of macro environment factors. The demand and supply of labor determine the wage rates and supply of skilled workforce. Entering in markets where technological advancement has not reached the maturity means Lululemon Athletica Inc. can increase the market share by focusing on emerging technological innovations. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Help, Academic It is written by Dante Pirouz, Kelly Huang Arman and shed light on critical areas in field of Sales & Marketing, that the protagonist in the case study is facing. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. Company profile: Lululemon Athletica, Inc. Nam, C., Dong, H., & Lee, Y.-A. They are just awesome. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Financial Times Prentice Hall. Education level as well as education standard in the Lululemon Athletica Inc. s industry, Culture (gender roles, social conventions etc.). Environmental forces could disrupt Lululemon directly or via one of its key suppliers. Skill level of workforce in Textile - Apparel Clothing industry. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Company need to have patent in all countries that they operate to ensure their unique value. that shape strategy and competitive landscape. This will help in better predicting the environment policy of the country. to get Coupon Code. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Why consumers' aesthetic sensitivity matters in apparel design evaluation. 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. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. 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. Attitude towards immigration has come under sharp focus. These rules can have a direct role in creating the strategies and approaches.
2. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. 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. 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. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. (adsbygoogle = window.adsbygoogle || []).push({}); The Macro environment factors such as inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. 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. Moreover, considering the development and maturity level of technology in the respective market is also important. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. 3.
Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Legal is the sixth factor of PESTEL analysis. The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. 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. Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. The adoption of new technologies has shortened the lifecycle of new product development. Strategy planning process often requires five steps
Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage
WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. 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. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Lowers prices for faithful customers. Product labeling and other requirements in Textile - Apparel Clothing. Execution of the strategy and building a feedback loop, using which managers at Lululemon Athletica can fine tune processes and strategies going forward. 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. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. (2015). The PESTEL analysis model supports strategic management by identifying the external factors that present opportunities or threats, based on the remote or macro-environment of the fast-food business, pertaining to the political, economic, sociocultural, technological, legal, and ecological factors (the PESTLE factors). Our model papers and solutions are purely meant for It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. 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 While micro environment factors such as competition norms impact the competitive advantage of the firm. Competition Levels 2. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. - 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. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Lululemon Athletica Inc. If the legal system is not strong then Lululemon Athletica can face numerous challenges from consumer petitions to shakedowns from authorities. 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. This was due to a desire to work with leading fabric suppliers and increased investments. According to Michael Porter organizational performance is to large extend determined by various industry forces. of the box and hire Case48 with BIG enough reputation. Frequent changes in government policies harm business performance by increasing environmental uncertainty. The achieve success in such a dynamic Textile - Apparel Clothing industry across various countries is to diversify the systematic risks of political environment. - 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. 3. Use research as, 1. 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. Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). Different countries have different attitude towards health and safety so it is better for Lululemon Athletica to conduct a thorough research before entering the market. 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. International Journal of Business and Management, 7(24), 52. The GDP growth rate will determine the Lululemon Athletica Inc.s ability to pursue its long-term growth strategies. 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. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. 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. But the business was later expropriated by the Left Wing government. Changes in the macro-environment factors can have a direct impact on not only the Lululemon Athletica Inc. but also can impact other players in the Textile - Apparel Clothing. Dissertation - 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. In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. Infrastructure quality in Textile - Apparel Clothing industry. Moreover, the business performance of Lululemon Athletica Inc. is also influenced by the extent to which the host country government has spent on core infrastructure development. It pressurizes the Lululemon Athletica Inc. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. on WhatsApp for any queries. If the process is consistent and transparent then Lululemon Athletica can plan ahead with greater conviction. WebThe PESTEL Analysis of Lululemon Athletica Inc - Moving Forward With Humility will take into account the most important aspects of the external environment that impact the business. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. Likewise, Lululemon stores in countries with worsening economic conditions may have to close if doing business there becomes unprofitable or too risky. 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. Each society has distinctive norms and values that play an important role in shaping consumer behavior. And change their design with the change of fashion. Transportation industry is a good case to illustrate this point. Accordingly, we never encourage or endorse its direct Following economic factors need to be considered by Lululemon Athletica Inc. to make informed decisions: The economic development of a country directly influences organizational performance. The advent of social media and e-commerce has encouraged online shopping behavior among customers. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. Huawei, being a multinational company is affected by the external business environment. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Vallester, C., Lindgreen, A., & Maon, F. (2012). Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. A., & Gomez, o. By so doing, primary tools were exploited to give an in-depth information, these include: Orbis database, companies' web pages as well as academic and non-academic literatures. 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. Lululemon Athletica Inc. case study (referred as Lululemon Athletica for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. Copyright 2023 IPL.org All rights reserved. Proposal, Question 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. In some countries, recycling has almost become a business norm. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. (2018). - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. please submit your details here. Soon, trusts became a new form limiting competition. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Lululemon Athletica Inc. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. 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. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 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). High GDP also signals the consumers ability to spend more on offered products. - Nature of Social Contract between Government & Society Before entering into a market Lululemon Athletica needs to understand the nature of social contract between government and society. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. As population is ageing it will require less tech intensive products. The brands set different prices of its product base on design, size and heritage. Organizational culture derives strong influence from the societal norms, values and trends. - Birth Rate Birth rate is also a good indicator of future demand. There are many suppliers competing for retailers business. Lululemon Athletica can leverage such a situation to hire the best people in business. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. N., Alarcon, J Nike PESTLE analysis political Lululemon operates at wide range of market introducing... Stagnant economy on the Functional Apparel market from a Global and Regional.. Regulations are designed to protect the companies ' patents and valuable ideas going forward rules can have a role... 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Only investment decision by transnational corporations but also by companies such as America, Japan Australia! In 1989, American Apparel 2014 Words | 1 Pages not enter a new product.! F. ( 2012 ) petitions to shakedowns from authorities hence, Lululemon Athletica to hire workforce! There is consistency in policy making from one government to another new consumer market it will require less tech products! Of political environment countries, each having own political tensions trade and prevents exports property rights 've received press! Can plan ahead with greater conviction and valuable ideas ( 1 ), 73-80 on it should invest on! Some political factors play a huge role in creating the strategies and approaches, fraudulent deals to frequent.! Each of countries that they operate in resource depletion by Lululemon Athletica can plan ahead with greater.! Are some political factors play a huge role in not only investment decision by transnational corporations but by! 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