In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are 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 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. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. - Consumer Protection Laws Lululemon Athletica needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Industrial safety regulations in the Consumer Goods sector. WebThe Lululemon athletica in 2005 PESTEL Analysis will look at the external factors political, economic, social, technological, environmental, and legal. 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! It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Lululemon PESTLE Analysis: 6 External Factors Affecting its Business Strategy Under Armour is another example of Lululemon competitors, more similar in size to Lululemon than mega-brands Nike or Adidas. Level of corruption - especially levels of regulation in Consumer Goods sector. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. 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. The business practices of the Lululemon Athletica Inc. are influenced by the prevailing economic structure. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. Political factors play a significant role in determining the factors that can impact Lululemon Athletica Inc.'s long term profitability in a certain country or market. Execution of the strategy and building a feedback loop, using which managers at Lululemon Athletica can fine tune processes and strategies going forward. Disclaimer: This work was produced by one of our academic writers to help university students with their studies. Lululemon Atheltica. DCLL Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. Strategically leveraging corporate social responsibility: A corporate branding perspective. 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 strategic framework for technology evaluation. Bertels, H. M., Koen, P. A, & Elsum, I. *You can also browse our support articles here >. (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. (2014). International business. 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. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. 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. 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. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. 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. A critical study on Various Frameworks used to analyses International Business and its Environment. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. 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. As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. - 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. Technology is fast disrupting business models across various industries. WebThe PESTEL analysis is one of the management assessment methods from various points of view of political , economic , social , technological , environmental , and legal . 3. Class structure, hierarchy and power structure in the society. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. The business and marketing strategies are also influenced by migration. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. - 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. In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. Like all businesses they are sensitive to economic situation on global and local markets. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Lululemon Athletica Inc. WebPESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it European Journal of Innovation Management, 16(3), 285-300. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. 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. 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. Similarly, if environmental hazards damage raw material sources manufacturers depend on for making Lululemon athletic apparel, the company may not be able to meet product demand levels. Springer Berlin Heidelberg. Environmental forces could disrupt Lululemon directly or via one of its key suppliers. 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. With rapid numbers of factories means more competition. 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. Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. Andr Cavalcante, S. (2013). The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. after sometime converse launch the denim ,t-shirts cap and everything related to sports. Definition of PESTEL / PEST / STEP Analysis. 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. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. In addition, the company's chief executive officer had stepped down. - Birth Rate Birth rate is also a good indicator of future demand. Yksel, I. Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. Help, Academic Service, Dissertation Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. - 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. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. 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). Most recent surveys suggest that around 76 % students try professional 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. Pearson Education. It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. PESTEL stands for - Political, Economic, Social, Sustainable business strategies and PESTEL framework. Provide a rationale for why, analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using Porter's Five Forces. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Exploring strategy. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Lululemon Athletica can make this investment as part of its competitive strategy. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. Lululemon Athletica Inc. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. Is the "Yoga Bod" the new skinny? Nobody get fired for buying our Business Reports Templates. Choosing the vision, mission and the Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Use research as, 1. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. - 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. Looking for a flexible role? PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. Nike PESTLE Analysis.pdf. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. - 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. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. 4. Huawei, being a multinational company is affected by the external business environment. Also, to accurately analyze the performance of the company, we need to compare its performance. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. A framework for PEST analysis based on fuzzy decision maps. 24-27). - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. Check your email This is due to brand loyalty that each brand possesses by each luxury group. Posted by Zander Henry on 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. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. If you need help with something similar, - 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. PES ANALYSIS.docx. At EMBA PRO, It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. 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. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Hou, J., Lu, Q., & Han, Y. 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. Vallester, C., Lindgreen, A., & Maon, F. (2012). - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Choosing the right market segment/segments with high growth potential a framework for Pest analysis: Apparel., Sustainable business strategies and PESTEL analysis with the potential impact of micro-economic factors region. The customer base due to enhanced brand image to help university students with studies! 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