Political environment and other factors not only impact the cost of doing business but also long term sustainability. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage 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. 2. 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. 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. Use of social media has become common in a modern business environment. Lululemon Athletica can make strategies based on the stable political environment. - 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. Academic writing has no room for errors and mistakes. Technology' is the fourth factor of PESTEL analysis. Analyze Strengths and Weaknesses of Lululemon Athletica. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. With rapid numbers of factories means more competition. The Essay Writing ExpertsUS Essay Experts. Choosing the vision, mission and the Check your email Copyright, patents / Intellectual property law. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. 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 . For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. A strategic framework for technology evaluation. The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. Particularly put extensive brand portfolio to cover different customer segments. (adsbygoogle = window.adsbygoogle || []).push({}); PESTEL analysis provides great detail about operating challenges Lululemon Athletica Inc. will face in prevalent macro environment other than competitive forces. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. So Dollarama struggles to find a balance between competitive prices and profitable prices. Developing international strategies. 3. Do you have a 2:1 degree or higher? It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Free resources to assist you with your university studies! Lululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. 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. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Nobody get fired for buying our Business Reports Templates. The environmental standards, laws and regulations vary across different markets. and cannot be used for research or reference purposes. 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. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. PESTEL analysis is mainly the assessment of macro environment factors. Explain and justify your rating. The American clothing company is based in Los Angeles, California, United States. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Product labeling and other requirements in Textile - Apparel Clothing. Help, Academic The strength of high price product strategy is that Nike can earn more on each single item. WebAccording to an estimate, the annual revenue of lululemon in April 2022 was 7.468 billion dollars, and it has increased by 27.5%. Sustainable business strategies and PESTEL framework. This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. 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 - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. The data protection has become an important issue due to consumers privacy and security concerns. Solution, Assignment Writing Anti-trust law in Textile - Apparel Clothing industry and overall in the country. The business practices of the Lululemon Athletica Inc. are influenced by the prevailing economic structure. 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. Research and development activities are highly important in an environment characterized by creative disruption. 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. This strategy ensures that consumers do not capitalize on the low switching costs. Why consumers' aesthetic sensitivity matters in apparel design evaluation. Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). Skill level of workforce in Textile - Apparel Clothing industry. Lululemon Athletica Inc. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. Also, it can ensure the quality of the products. Rate the supplier power forces (High, Medium, or Low). Out of which, the net income of the sportswear - Unrest within the Country & Chances of Civil Unrest We dont think that Lululemon Athletica business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. 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. inspiration, guidance, and understanding. At EMBA PRO, To achieve such aims, data were collected, reviewed and analyzed within the industry. Starting just $19. Attitude towards immigration has come under sharp focus. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. Strategically leveraging corporate social responsibility: A corporate branding perspective. after sometime converse launch the denim ,t-shirts cap and everything related to sports. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. IGI Global. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Government policies supporting active and healthy lifestyle can have effect on Lululemon. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. It is opportunity for Lululemon. 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. Developing a multi-criteria decision making model for PESTEL analysis. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Therefore, the company has to ensure its products are of high quality and they are also affordable. We are here to help. Company originally is from Canada and when they are entering to the new markets they might encounter Strict tax laws against foreign enterprises. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. so there is a big opportunities for converse from these companies. Developing strategic business models and competitive advantage in the digital sector. - 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. Springer Berlin Heidelberg. - 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. Lululemon Athletica can leverage such a situation to hire the best people in business. And change their design with the change of fashion. By association, should these companies engage in unethical business practices Yksel, I. - 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. Analysis and Comparison of Nike, Lululemon, and Under Armour Under Armours Organizational Function Management The Strategic Differences Between Under Armour and Aritzia Under Armours Target Market: Buyer Behavior and Organization The Internal Strengths and Weaknesses and External Factors Affecting Under Armour The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Vallester, C., Lindgreen, A., & Maon, F. (2012). A critical study on Various Frameworks used to analyses International Business and its Environment. 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. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. With the travel and market competition added together, Chip would increasingly become disconnected with Lululemon, leaving less experienced Lululemon employees to make decisions that could tank the company. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to. These rules can have a direct role in creating the strategies and approaches. Info: 1099 words (4 pages) PESTEL Example It is not only well known but has a rich history. Louis Vuitton is known globally and has a strong image in Singapore, China, Hong Kong and Japan which are leading financial hubs and individuals with high net worth. Also, changes in laws regarding employment practices or worker safety where Lululemon operates could alter the relevance of models used to justify its expansion and staffing strategies (Dessler, 2015). The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. Buy Professional PPT templates to impress your boss. 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 Inc. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Businesses tried to come together, but it didnt always work. In some countries, recycling has almost become a business norm. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. PESTLE analysis Political Lululemon operates at wide range of market. Daidj, N. Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Copyright 2023 IPL.org All rights reserved. Lululemon Athletica should be aware of presence of such practices in a country. In highly hierarchical societies the power of decision making often reside at the top. The GDP growth rate will determine the Lululemon Athletica Inc.s ability to pursue its long-term growth strategies. Political (2017). please submit your details here. Chat with us 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. 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. (2015). Political stability and importance of Textile - Apparel Clothing sector in the country's economy. Some of the legal factors that Lululemon Athletica Inc. leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. If data breaches occur and experts determine Lululemon violated confidentiality or privacy laws through flaws in its information security protocols, it could face serious litigation and financial penalties. 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. 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). Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Transportation industry is a good case to illustrate this point. 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 We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Thank you for your email subscription. 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