Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. 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). WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. - Technology transfer and licensing issues for Lululemon Athletica laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Lululemon Athletica can avoid shakedowns and IPR thefts. 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). Attitude towards immigration has come under sharp focus. Attitudes (health, environmental consciousness, etc. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. - 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. Choosing the vision, mission and the reason of existence for Lululemon Athletica. Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Rate the supplier power forces (High, Medium, or Low). If the legal system is not strong then Lululemon Athletica can face numerous challenges from consumer petitions to shakedowns from authorities. Solution, Assignment Writing Business models outside the core: Lessons learned from success and failure. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). GSTF International Journal on Computing, 1(1), 73-80. If you need help with something similar, - Laws regarding Monopoly and Restrictive Trade Practices As a new player Lululemon Athletica shouldnt be worried about the monopoly and restrictive trade practices law. WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. What is PESTEL Analysis & its significance for Lululemon. - 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. - Corporate Social Responsibilities Culture Are Lululemon Athletica present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Grnig, R., & Morschett, D. (2017). WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. 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. Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Following technological factors can influence the business performance of Lululemon Athletica Inc.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. Starting just $19. Posted by Zander Henry on 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. It is an The advent of social media and e-commerce has encouraged online shopping behavior among customers. - 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. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Product labeling and other requirements in Textile - Apparel Clothing. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. The bond rating of national government is investment grade. As such the impact of the external business environment factors on Huaweis marketing strategy are explained by the PESTEL Model as follows: PESTLE analysis Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Lowers prices for faithful customers. Understanding the impact of technology on firms business models. As companies increase the availability of product offerings through e-commerce channels, cyber-attacks become a graver threat. Businesses tried to come together, but it didnt always work. 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. All rights reserved. Political Like all businesses they are sensitive to economic situation on global and local markets. Lululemon Athletica Inc. need to study data protection regulations to protect the customer data. Analyzing the companys financial statement helps in evaluating performance of the company that further helps in making smart decisions. 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. There is a growing trend towards the use of green/eco-friendly products. This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. 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. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Case Analysis - Lululemon Athletica, Inc. 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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. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. WebPESTEL Analysis Resources BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their The late 1800s was an important time for America in business and industry. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. Strategically leveraging corporate social responsibility: A corporate branding perspective. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. 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. Pearson Education. Research and development activities are highly important in an environment characterized by creative disruption. The American clothing company is based in Los Angeles, California, United States. Class structure, hierarchy and power structure in the society. For example Trump not standing by US commitments created an environment of uncertainty. Lululemon Athletica can leverage such a situation to hire the best people in business. Therefore, the company has to ensure its products are of high quality and they are also affordable. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Infrastructure quality in Textile - Apparel Clothing industry. 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. In the startup phase of Lululemon Athletica they had a high bargaining power. 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. The data protection has become an important issue due to consumers privacy and security concerns. Yksel, I. 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 High unemployment signals the availability of surplus labor at comparatively lower wages. Lululemon Athletica Inc. can closely analyze the following factors before entering or investing in a certain market-. 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 . 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. Culture is considered an important variable by international marketing managers. Similarly, it is important to understand the industry lifecycle stage. The power distance within any society shows the acceptance of hierarchy and income inequality. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. because now a days all people not buy alder fashion product. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Info: 1099 words (4 pages) PESTEL Example In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. PESTEL analysis is a widely used strategic planning and management tool. Supply chain risk management framework: A fishbone analysis approach. WebIntroduction to PESTEL Analysis PESTEL Analysis / PEST / STEP Analysis for Lululemon Athletica (United States) At Oak Spring University we have updated the Lululemon Athletica PESTEL Analysis is light of emerging geo strategic and geo-political factors such as Russia Ukraine war, tensions between China & Taiwan, chances of - 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. Was Lululemon destined to follow Blackberry as another example of a failed Canadian company, or could it resurrect its former glory by facing its critics head on? 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. Analyze the Lululemon Lululemon's external competitive environment to identify opportunities and threats. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. 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 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. WebPestel Analysis is a strategic method/ tool used by marketers to analyse and evaluate the organisation's external marketing environment factors that directly impact the on WhatsApp for any queries. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. Choosing the vision, mission and the Customer Loyalty Program Create a customer loyalty points systems for purchases. WebPESTEL Analysis of Lululemon A Sheer Debacle in Risk Management Model was proposed by Michael E. Porter in 1979. Technology analysis involves understanding the following impacts -, Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. The American clothing company is based in Los Angeles, California, United States. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. WebPestel Analysis OF Lululemon Athletica Case Study Help Political factors: The reality that Pestel Analysis of Lululemon Athletica has actually expanded its services in different In this situation, the suppliers have a low level of bargaining power. According to Michael Porter organizational performance is to large extend determined by various industry forces. Factors influencing consumers' purchase intention of green sportswear. Out of which, the net income of the sportswear Exploring strategy. Fern Fort University. Free resources to assist you with your university studies! 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. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. please submit your details here. Exchange rates & stability of host country currency. ~ 0.0 Page). University of San Carlos - Main Campus. 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. All work is written to order. 3. - Birth Rate Birth rate is also a good indicator of future demand. IEEE. - 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. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. - 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. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. Explain. Organizational culture derives strong influence from the societal norms, values and trends. 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. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Most recent surveys suggest that around 76 % students try professional To achieve such aims, data were collected, reviewed and analyzed within the industry. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. 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. 1, pp. (2018). Provide a rationale for why, analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using Porter's Five Forces. 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. MarketLine. WebView Lululemon External Analysis Worksheet Part 1.doc from MGT 472 at Salem State University. Thank you for your email subscription. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Nike PESTLE Analysis.pdf. Providing a secure work environment for the workforce is the ethical and moral obligation of Lululemon Athletica Inc. Environmental forces could disrupt Lululemon directly or via one of its key suppliers. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. The health and efficiency of financial markets will determine Lululemon Athletica Inc.s ability to raise the capital at fair prices. Bureaucracy and corruption negatively influence the business environment. 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. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. The macro-environment factors can impact the The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. 24-27). Entrepreneurial spirit and broader nature of the society. 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. Check your email Scope of the Report of Sports Bra and Underwear 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. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 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. 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. Lululemon Athletica should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. But the business was later expropriated by the Left Wing government. 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. However, it started off This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. Lululemon Athletica should be aware of presence of such practices in a country. Industrial safety regulations in the Consumer Goods sector. No plagiarism, guaranteed! In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. Transportation industry is a good case to illustrate this point. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. 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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Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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. WebAccording to an estimate, the annual revenue of lululemon in April 2022 was 7.468 billion dollars, and it has increased by 27.5%. Proposal, Assignment Writing inspiration, guidance, and understanding. Chat with us This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Lululemon Athletica. So the decade long profits didnt materialize in the end. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Technology' is the fourth factor of PESTEL analysis. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Lululemon Athletica Inc. Aithal, P. S. (2017). During the 1960 to 1970 the tennis shoes started to move from games footwear to easygoing footwear and turned into an image for the cheap and grime cultures. Financial Times Prentice Hall. Developing strategic business models and competitive advantage in the digital sector. Spanish oil giant Repsol had to face a similar instance. (2017). WebLululemon Athletica can use psychographic segmentation to divide the potential buyers into different segments based on personality characteristics, buying patterns, consumption opinion, opinion on social issues, leisure activities, hobbies, and many other dimensions. 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