The political environment of a country comprises multifaceted factors. 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. Scope of the Report of Sports Bra and Underwear 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. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. Academic writing has no room for errors and mistakes. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Education level as well as education standard in the Lululemon Athletica Inc. s industry, Culture (gender roles, social conventions etc.). With growing market, there will be opportunity to grow. Lululemon Athletica Inc. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) 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. Today, new products are developed quickly, and supply chain partners have also gained more power. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. - 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. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. And change their design with the change of fashion. Some countries offer subsidies for encouraging investment in renewable technologies. The use of foreign labour and manufacturing resources among multinational enterprises can become complicated, where firms that violate principles of corporate social responsibility experience backlash from consumers often (Nam et al., 2017). WebThe Lululemon athletica in 2005 PESTEL Analysis will look at the external factors political, economic, social, technological, environmental, and legal. Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage All work is written to order. This strategy ensures that consumers do not capitalize on the low switching costs. Bureaucracy and corruption negatively influence the business environment. - 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. Business models outside the core: Lessons learned from success and failure. 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! The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool 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. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. The proportions being estimated consist of the government approach to foreign markets, the constancy and financial rules, Political factors play a significant role in determining the factors that can impact Nordstrom 's long term profitability in a certain country or market. Changes in weather and climatic conditions can influence business efficiency. 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Below is a demonstration Choosing the vision, mission and the reason of existence for Lululemon Athletica. Analyzing the companys financial statement helps in evaluating performance of the company that further helps in making smart decisions. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. Pearson Education. The first Converse All Star shoes was made in the middle 1900 as a shoes for basket ball players. With that being taken away, they will be put - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. Developing strategic business models and competitive advantage in the digital sector. They are just awesome. The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. Lululemon Athletica Inc. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. Also, to accurately analyze the performance of the company, we need to compare its performance. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. The bond rating of national government is investment grade. Soon, trusts became a new form limiting competition. Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Warning! Article continues after ad WebThe Lululemon A Sheer Debacle in Risk Management has global operations and a global presence As such, the company has high exposure to global cultures and different Company originally is from Canada and when they are entering to the new markets they might encounter Strict tax laws against foreign enterprises. In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. 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. This article is only an example Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). As population is ageing it will require less tech intensive products. - Waste Management What is the policy of waste management in the prospective market and how Lululemon Athletica can adhere to the waste management requirements in that market. The environmental standards, laws and regulations vary across different markets. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Lululemon Athletica Inc. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Solution, Assignment Writing 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 While the consistent $100,000 salary sounds like a promising way to earn capital for Lululemon, the job at Westbeach appears to be too time consuming for Chip to put valuable effort into both companies. Most recent surveys suggest that around 76 % students try professional In this situation, the suppliers have a low level of bargaining power. We believe that Chip Wilson and Lululemon would be better off if Chip remained in his current position at Lululemon. Analyze Strengths and Weaknesses of Lululemon Athletica. 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). Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. Political activity in the external environment influences Lululemon's ability to operate efficiently. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Then the core elements of, PESTEL analysis would be considerate and applied to the organizational situations to, assess potential strengths and challenges Lululemon faces being a clothing brand in, Canada and United States particularly. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. It must look at regulations and law in each of countries that they operate in. We make the greatest data maps. Daidj, N. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. 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. 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. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. No plagiarism, guaranteed! PESTEL stands for - Political, Economic, Social, 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. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. As mentioned, marketers cannot control the factors of the external environment. International business. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. 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. Desai, K. J. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. Some of the environmental factors that a firm should consider beforehand are -, In number of countries, the legal framework and institutions are not robust enough to protect the intellectual property rights of an organization. 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). 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. - 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. Many countries have placed strict norms to protect their urban areas through effective waste management. Disclaimer: This work was produced by one of our academic writers to help university students with their studies. Lowers prices for faithful customers. Execution of the strategy and building a feedback loop, using which managers at Lululemon Athletica can fine tune processes and strategies going forward. 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. Explain and justify your rating. This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. Definition of PESTEL / PEST / STEP Analysis. Comparative advantages of host country and Consumer Goods sector in the particular country. 3. Seifert, C. & Chattaraman, V. (2017). : A comparative content analysis of mainstream yoga lifestyle magazine covers. Vallester, C., Lindgreen, A., & Maon, F. (2012). University of San Carlos - Main Campus. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. Posted by Zander Henry on WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. PESTEL stands for Political, Social, Economic, If you have BIG dreams to score BIG, think out WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Starting just $19. 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. They of the box and hire Case48 with BIG enough reputation. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Lululemon Athletica should be aware of presence of such practices in a country. Lululemon Athletica should assess to what level the local market is prepared to roll out the 5G connectivity. These rules can have a direct role in creating the strategies and approaches. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. According to Michael Porter organizational performance is to large extend determined by various industry forces. Chat with us We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. It is important for Lululemon Athletica Inc. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. - 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. Dollarama competes with other stores like dollar tree, which have a similar approach to Dollarama by having prices at approximately $1.25. Bureaucracy and interference in Textile - Apparel Clothing industry by government. The consumers spending patterns are influenced by their purchasing power of money. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Info: 1099 words (4 pages) PESTEL Example PESTEL analysis is mainly the assessment of macro environment factors. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Lululemon Athletica can leverage such a situation to hire the best people in business. Developing a multi-criteria decision making model for PESTEL analysis. 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. 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. PESTEL & Environment Analysis, Landec Corporation PESTEL & Environment Analysis, Snyder's-Lance, Inc. PESTEL & Environment Analysis, Limoneira Company PESTEL & Environment Analysis, Lamb Weston Holdings, Inc. PESTEL & Environment Analysis, Lifeway Foods, Inc. PESTEL & Environment Analysis, La-Z-Boy Incorporated PESTEL & Environment Analysis, Mattel, Inc. PESTEL & Environment Analysis, Malibu Boats, Inc. PESTEL & Environment Analysis. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. Lululemon operates at wide range of market. 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. Course Hero is not sponsored or endorsed by any college or university. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. 1. 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. In highly hierarchical societies the power of decision making often reside at the top. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. Culture is considered an important variable by international marketing managers. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. - 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. WebLululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Free resources to assist you with your university studies! You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Lululemon Athletica Inc. so there is a big opportunities for converse from these companies. Foreign currency, taxation, and trade conditions in foreign countries make it difficult for multinational decision-makers to predict future business conditions. - 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. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Choosing the vision, mission and the Investors, managers, creditors and others need to analyze various aspects of financial statements so they can invest, manage and do business more effectively with the particular company. It is not only well known but has a rich history. It is important for Lululemon Athletica Inc. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. We're here to answer any questions you have about our services. Rate each of the forces (High, Medium, or Low). - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. IEEE. - 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. Service, Dissertation inspiration, guidance, and understanding. It is important for Lululemon Athletica Inc. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Dollarama realises that consumers will stand for higher prices on their items so Dollarama has been steadily increasing its prices to keep profits high and as of now this isnt a concern for Dollarama but if they raise the prices of their items too high then it will detract consumers from the product because they can vote with their feet and choose to shop at Dollaramas competitors instead. Send your data or let us do the research. 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. Explain. 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). In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. Supply chain risk management framework: A fishbone analysis approach. 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. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. 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. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. But often in emerging countries these agencies delay the process as a tactic to extract bribes. 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. To know while considering the performance of the PESTEL model is an acronym for political,,... C. & Chattaraman, V. ( 2017 ) that further helps in making smart decisions change. Comparative advantages of host country and Consumer Goods sector in the digital sector pollution coupled with advancement! To theft of organizations secret sauce thus the overall competitive edge law in each of countries that they in! 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