Competition Levels Rate the supplier power forces (High, Medium, or Low). This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Our model papers and solutions are purely meant for - 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. Analyzing the companys financial statement helps in evaluating performance of the company that further helps in making smart decisions. (2009). Info: 1099 words (4 pages) PESTEL Example Today, new products are developed quickly, and supply chain partners have also gained more power. 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). It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. It is an Culture is considered an important variable by international marketing managers. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Definition of PESTEL / PEST / STEP Analysis. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. As population is ageing it will require less tech intensive products. Too new or too complex? Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. - 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. Lululemon Athletica Inc. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. Analyze the Lululemon Athletica external competitive environment to identify opportunities and threats. Developing a multi-criteria decision making model for PESTEL analysis. Some societies encourage entrepreneurship while some dont. IGI Global. Product labeling and other requirements in Textile - Apparel Clothing. By association, should these companies engage in unethical business practices Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. Exchange rates & stability of host country currency. - 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. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Lululemon Athletica Inc. 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. correct email will be accepted, (Approximately 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. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. A framework for PEST analysis based on fuzzy decision maps. Because of Dollaramas mix of alluring prices and exceptional product quality, it remains Canadas leading discount store despite. 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. - 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. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. 2. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. 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. Providing a secure work environment for the workforce is the ethical and moral obligation of Lululemon Athletica Inc. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. Posted by Zander Henry on Nike PESTLE Analysis.pdf. While micro environment factors such as competition norms impact the competitive advantage of the firm. - 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. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. It must look at regulations and law in each of countries that they operate in. POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. Choosing the vision, mission and the Starting just $19. 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. The marketing department of Lululemon Athletica Inc. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Businesses tried to come together, but it didnt always work. Taxi industry is now dominated by players like Uber and Lyft. academic writing services at least once in their lifetime! 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. WebPESTEL Analysis of Lululemon A Sheer Debacle in Risk Management Model was proposed by Michael E. Porter in 1979. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. Daidj, N. 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 (2014). Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. It is important to note that the Lululemon athletica in 2005 PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market changes. Seifert, C. & Chattaraman, V. (2017). Do you have a 2:1 degree or higher? (2016). PESTEL stands for Political, Social, Economic, What is PESTEL Analysis & its significance for Lululemon. 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. Industrial safety regulations in the Consumer Goods sector. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Check your email Integrity, Essay Writing In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. 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. 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. WebLululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lululemon Athletica. 2. - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. Amazing Business Data Maps. 1. 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. 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 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. Strategy planning process often requires five steps Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. For example Trump not standing by US commitments created an environment of uncertainty. 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. 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. Common materials used in apparel making such as rubber and cotton are readily available. They are just awesome. 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. 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According to Michael Porter organizational performance is to large extend determined by various industry forces. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Government intervention in the free market and related Consumer Goods. Buy Professional PPT templates to impress your boss. - 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. 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). However, it started off - 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. Use of social media has become common in a modern business environment. 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. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Some of the economic factors that Lululemon Lululemon's 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. GSTF International Journal on Computing, 1(1), 73-80. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. WebThe PESTEL analysis is one of the management assessment methods from various points of view of political , economic , social , technological , environmental , and legal . 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. 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. 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. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. (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. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. In certain countries where Lululemon operates, political corruption could become a problem since there are fewer opportunities for recourse in the regions. It can lead to uncertainty and suppression of consumption in both short term and long term. 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). . - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Lululemon Athletica products and prices of overall products have remained sticky in the US market. Soon, trusts became a new form limiting competition. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. - 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. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Proposal, Question - Demand Shifts from Goods Economy to Service Economy The share of services in the economy is constantly increasing compare to the share of manufacturing, goods, and agriculture sector. Moreover, considering the development and maturity level of technology in the respective market is also important. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Transportation industry is a good case to illustrate this point. For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. 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. BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. Spanish oil giant Repsol had to face a similar instance. Patents are very important in Lululemon operation to have advantage of their competitor. Use research as, 1. (2015). If you need help with something similar, 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. But the business was later expropriated by the Left Wing government. 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. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. 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. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. Case Analysis - Lululemon Athletica, Inc. 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