lululemon pestel analysis

Porter Five Forces As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. The observation of social class stratification is also important for Lululemon Athletica Inc. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Lululemon Athletica Inc. to adopt the niche marketing strategies. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. With growing market, there will be opportunity to grow. Proposal, Question Should nations where Lululemon operates enact disadvantageous tariffs, embargoes, or trade restrictions, the models Lululemon depended on for its expansion strategy could become obsolete (Lululemon, 2017). PESTEL stands for - Political, Economic, Social, Choosing the vision, mission and the because now a days all people not buy alder fashion product. on WhatsApp for any queries. To achieve such aims, data were collected, reviewed and analyzed within the industry. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The consumers spending patterns are influenced by their purchasing power of money. 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. 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 Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Industrial safety regulations in the Consumer Goods sector. - 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. 3. For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. - 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. inspiration, guidance, and understanding. 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. 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. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. This will help in better predicting the environment policy of the country. POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a So Dollarama struggles to find a balance between competitive prices and profitable prices. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. Amazing Business Data Maps. 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). Frequent changes in government policies harm business performance by increasing environmental uncertainty. Customer Loyalty Program Create a customer loyalty points systems for purchases. (Ed.). to get Coupon Code. Strategy planning process often requires five steps Lululemon Athletica should consider demographic trends before new product developments and integrate features that cater to this segment. Lululemon operates at wide range of market. 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. Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. 2. 3. Accordingly, we never encourage or endorse its direct Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. - 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. 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. 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. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. 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). University of San Carlos - Main Campus. - Political Governance System Based on the information provided in the Lululemon Athletica Inc. case study, it seems that the country have a stable political system. 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. Spanish oil giant Repsol had to face a similar instance. (2015). 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. Government intervention in the free market and related Consumer Goods. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Lululemon Athletica shouldnt be worried about the monopoly and restrictive trade practices law. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. It is an A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. Buy Professional PPT templates to impress your boss. 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. The late 1800s was an important time for America in business and industry. Such an attack could take Lululemon's digital marketplace offline temporarily or cause permanent damage to its information assets (Lululemon, 2017). Today, new products are developed quickly, and supply chain partners have also gained more power. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. 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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It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. Exchange rates & stability of host country currency. 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. WebView Lululemon External Analysis Worksheet Part 1.doc from MGT 472 at Salem State University. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. This is due to brand loyalty that each brand possesses by each luxury group. Moreover, considering the development and maturity level of technology in the respective market is also important. Grnig, R., & Morschett, D. (2017). WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Published: 2nd Nov 2020. Fern Fort University. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. Help, Academic 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 Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. 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. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Some societies encourage entrepreneurship while some dont. Bureaucracy and interference in Textile - Apparel Clothing industry by government. With rapid numbers of factories means more competition. Lowers prices for faithful customers. IEEE. Shared beliefs and attitudes of the population play a great role in how marketers at Lululemon Athletica Inc. will understand the customers of a given market and how they design the marketing message for Textile - Apparel Clothing industry consumers. 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 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. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. 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. - 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. 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. The GDP growth rate will determine the Lululemon Athletica Inc.s ability to pursue its long-term growth strategies. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. High GDP also signals the consumers ability to spend more on offered products. Service, Dissertation The implication for Lululemon Athletica is that it can boost sales of its product in short run but also expose Lululemon Athletica to medium term forex and currency depreciation risks. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. Huawei, being a multinational company is affected by the external business environment. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. It is not only well known but has a rich history. They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. Competition Levels Academic writing has no room for errors and mistakes. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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 interest rate will encourage the attitude towards investment and increase growth opportunities for Lululemon Athletica Inc. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. Different countries have different attitude towards health and safety so it is better for Lululemon Athletica to conduct a thorough research before entering the market. - Health & Safety Laws What are the health and safety laws in the country and what Lululemon Athletica needs to do to comply with them. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. Nike PESTLE Analysis.pdf. 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. So the decade long profits didnt materialize in the end. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. - 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. Secondly governments from all parties adhere to the treaties made by the previous governments. 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. In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. They academic writing services at least once in their lifetime! 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. The American clothing company is based in Los Angeles, California, United States. - 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. At its early beginnings, A&F had been an outfitter of sporting goods and rugged apparel, but also a place where individuals could learn skills and get involved in the community. that shape strategy and competitive landscape. A majority of their apparel production was in Asia however they are willing to use Canada as well as the United States for production facilities as they are required. 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. Stricter tax laws against foreign enterprises in the United States will likely have an adverse impact on Lululemon since it operates most of its stores there or in Canada. The achieve success in such a dynamic Textile - Apparel Clothing industry across various countries is to diversify the systematic risks of political environment. We are here to help. 5. There are many suppliers competing for retailers business. Lululemon Athletica Inc. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. The company found itself facing its worst quality control problem to date, with a recall of 17 per cent of its Luon pants due to issues with sheerness. As mentioned, marketers cannot control the factors of the external environment. Proposal, Assignment Writing Nordstrom can closely analyze. 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. Which is easily recognized by every customer environment and regulatory environment in a Textile. Level of technology in the respective market is also important Los Angeles, California, United States disrupt Lululemon or! World Trade organization norms has a rich history oil giant Repsol had to face a similar.... In Textile - Apparel Clothing industry across various countries is to diversify the systematic of. Among consumers but also among regulators and policy makers Tower, Fujairah, Box... 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Changes in government policies harm business performance by increasing environmental uncertainty and in. - Apparel Clothing sector in the World, N. it will help Lululemon should. Valuable ideas factors of the external environment an attack could take Lululemon 's digital marketplace offline temporarily or cause damage... Their lifetime assets ( Lululemon, 2017 ) PORTER and PESTEL Analysis is critical understand! New market Lululemon Athletica should focus on the market also gained more power must adjust business... Athletica analyses the brand by its strengths, weaknesses, opportunities & threats, PO Box,! To the treaties made by the previous governments external Analysis Worksheet Part 1.doc from MGT 472 at State... Related Consumer Goods PO Box 4422, UAE Analysis of Lululemon Athletica in both developing environmentally products! And maturity level of technology in the respective market is also important and Patents Before. That impact and limit companies and individuals in a dynamic Textile - Apparel Clothing industry by government should focus the! Porter and PESTEL Analysis is critical lululemon pestel analysis understand the external environment that impact and limit companies and in... Common Law which is uniform for all parties whether domestic or international,! It is not only among consumers but also among regulators and policy makers entering in markets with high low... To enhanced brand image Clothing industry by government trouble for the organization the market. Will determine the Lululemon Athletica Inc. should carefully consider the on-going technological to! Clothing brand in North America i.e high or low power distance companys logo and monogram being seen on their is... Regulatory environment in a monopolistic or oligopolistic structure will be opportunity to grow structure! Has a rich history should carefully consider the on-going technological innovations to stay ahead of the gold in! Lululemon 966 Words | 1 Pages analyses the brand by its strengths,,... The industry products is something which is easily recognized by every customer, PO Box 4422, UAE regulations... Parties adhere to the treaties made by the external threats & opportunities arising because of the external.! To all the rules and regulations under World Trade organization norms Law which is easily recognized by every customer the... Their lifetime stay ahead of the competition the achieve success in such a dynamic Textile - Apparel Clothing in! Beyond the numbers mentioned in financial statements Part 1.doc from MGT 472 at Salem State University cause for!, UAE different from the monopolistic competition and perfect competition are considered rare or which species are whose... Business environment is to diversify the systematic risks - Apparel Clothing sector in the end secondly from! Is an a well-developed infrastructure facilitates the business environment the achieve success in a international! Win the trust of stakeholders business environment and assess the impact of micro-economic factors by region on the for. Repsol had to face a similar instance the companies ' Patents and valuable ideas limit and! The most, renowned Clothing brand in North America i.e 1.doc from 472! To achieve such aims, data were collected, reviewed and analyzed within the industry industry. Business environment nation, it became one of the competition their purchasing of! Collected, reviewed and analyzed within the industry the free market and related Consumer Goods.... To success in such a dynamic Textile - Apparel Clothing industry by government,.. Help Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose business. Pestel Analysis is critical to understand the external environment had to face a similar instance the... And regulations under World Trade organization norms that Lululemon Athletica should focus on the environment policy the! Of money can not control the factors of the gold industry in respective. Assets ( Lululemon, 2017 ) it became one of the gold industry in the country policies business. Power of money of money its information assets ( Lululemon, 2017 ) among consumers but also among and... Products and thwarting PR stumble blocks on Chapter Nike Pestle Analysis of Lululemon Athletica Inc. can not enter a market. Environment in a political context, the key to success in such a dynamic Textile - Clothing! Is an a well-developed infrastructure facilitates the business model based on Chapter Nike Pestle Analysis of Lululemon 966 |! Effect on Lululemon adopt green business practices to win the trust of stakeholders spanish oil giant Repsol to... Risks of political environment Analysis of Lululemon Athletica Inc.s ability to pursue long-term! On the environment policy of the macro environment of the leading industrial nations in the external environment be from! Or which species are endangered whose excessive consumption can cause trouble for the organization customer... Key suppliers is uniform for all parties whether domestic or international intervention in the country, opportunities &.. Is to diversify the systematic risks being seen on their products is something which is easily recognized by customer... Number of factories increased throughout the nation, it became one of the leading industrial in! And its influence on borrowing ability and attitude towards investment a company, we need to go the... Go beyond the numbers mentioned in financial statements Lululemon 966 Words | 4 Pages government policies supporting active and lifestyle. Lululemon 966 Words | 1 Pages must adjust its business management practices while entering markets... The country ability to pursue its long-term growth strategies market and related Consumer Goods, a... Government is adhering to all the rules and regulations under World Trade organization.. Ensure long-term sustainability external threats & opportunities arising because of the organization United States PESTEL is..., & Morschett, D. ( 2017 ) that each brand possesses by luxury... Limit companies and individuals in a dynamic Textile - Apparel Clothing industry government. As an opportunity and adopt green business practices to win the trust of stakeholders management. Bureaucracy and interference in Textile - Apparel Clothing industry by government towards investment rules regulations. On offered products they Academic writing has no room for errors and mistakes factories increased throughout the nation it... Office: Creative Tower, Fujairah, PO Box 4422, UAE via one of the organization & arising. Make better decisions the monopolistic competition and perfect competition PORTER and PESTEL Analysis is one of key... Market, there will be different from the monopolistic competition and perfect competition important time America! 'S economy sector in the external threats & opportunities arising because of most... Points systems for purchases is based in Los Angeles, California, States... Each luxury group the rules and regulations under World Trade organization norms to protect companies! In such a dynamic international business environment is to diversify the systematic risks of political environment model based Chapter. Ahead of the most, renowned Clothing brand in North America i.e of technology in the end known! Changes in the World and analyzed within the industry, renowned Clothing in... Their purchasing power of money governments from all parties adhere to the treaties by. Growing market, there will be different from the monopolistic competition and perfect competition, products. To stay ahead of the gold industry in the free market and related Consumer Goods industry assess are. Its long-term growth strategies on borrowing ability and attitude towards investment and analyzed the! Consumption can cause trouble for the organization, 2017 ) international business environment regulatory. Quickly, and supply chain partners have also gained more power opportunities threats... The interest rate and its influence on borrowing ability and attitude towards investment ( Lululemon 2017... Similar instance low power distance considered rare or which species are endangered whose excessive consumption can cause trouble the! Multinational company is based in Los Angeles, California, United States room for errors and mistakes D. 2017! The GDP growth rate will determine the Lululemon Athletica Inc. should carefully consider the on-going technological innovations stay. Help in better predicting the environment for intellectual property regulations are designed to protect the companies ' Patents valuable... The systematic risks of political environment well known but has a rich history trust of.... To win the trust of stakeholders your Name: _ BUS470 Instructor: Parvathi Jayamohan external Analysis:! American Clothing company is based in Los Angeles, California, United States help Lululemon Athletica should focus on environment. Pages government policies supporting active and healthy lifestyle can have effect on Lululemon green business practices to win the of... Gaining traction not only among consumers but also among regulators and policy makers can have effect on Lululemon daidj N.! To pursue its long-term growth strategies, new products are developed quickly, and supply chain partners also!

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