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The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. In the startup phase of Lululemon Athletica they had a high bargaining power. High unemployment signals the availability of surplus labor at comparatively lower wages. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. PESTEL analysis is a widely used strategic planning and management tool. The first Converse All Star shoes was made in the middle 1900 as a shoes for basket ball players. No plagiarism, guaranteed! SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. 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. 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. Looking for a flexible role? Patents are very important in Lululemon operation to have advantage of their competitor. 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 is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. If Lululemon Athletica Inc. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. - 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. Huawei, being a multinational company is affected by the external business environment. It is sensitive to business law regulation in different countries, and they tax regulation. With growing market, there will be opportunity to grow. - 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. As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. There are many suppliers competing for retailers business. According to Michael Porter organizational performance is to large extend determined by various industry forces. Political activity in the external environment influences Lululemon's ability to operate efficiently. ), Recent technological developments by Lululemon Athletica Inc. competitors, Impact on cost structure in Textile - Apparel Clothing industry, Impact on value chain structure in Consumer Goods sector, Air and water pollution regulations in Textile - Apparel Clothing industry, Waste management in Consumer Goods sector, Attitudes toward green or ecological products, Attitudes toward and support for renewable energy. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. - 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. Solution, Assignment Writing Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. 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 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 While micro environment factors such as competition norms impact the competitive advantage of the firm. Ignorance in this regard can cause undesired circumstances for Lululemon Athletica Inc., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Andr Cavalcante, S. (2013). This gives Lululemon a lot of choice in picking who they want to buy supplies from. Course Hero is not sponsored or endorsed by any college or university. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Company profile: Lululemon Athletica, Inc. Nam, C., Dong, H., & Lee, Y.-A. 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. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Case Analysis - Lululemon Athletica, Inc. 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(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. The global expansion strategies of the Lululemon Athletica Inc. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. University of San Carlos - Main Campus. 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. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. This will help in better predicting the environment policy of the country. Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. inspiration, guidance, and understanding. The environmental standards, laws and regulations vary across different markets. 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. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. - 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. 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. These rules can have a direct role in creating the strategies and approaches. Definition of PESTEL / PEST / STEP Analysis. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Integrity, Essay Writing Abercrombie & Fitch is an American fashion retailing company headed by president and CEO Michael Jeffries. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. 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. Check your email Nordstrom can closely analyze. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. Such an attack could take Lululemon's digital marketplace offline temporarily or cause permanent damage to its information assets (Lululemon, 2017). If there is huge income inequality in the society then the likelihood of conflict and crime increases. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Lululemon Athletica. Lululemon Athletica should be aware of presence of such practices in a country. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Service, Dissertation The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. Abercrombie & Fitch brand focuses on offering apparel that reflected the youthful lifestyle for a target audience, which was college students, designed to encourage teamwork and creativity On February 2007, A&F retailer operated 944 stores in 49 States, District of Columbia and Canada. Political environment and other factors not only impact the cost of doing business but also long term sustainability. (2017). 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. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Buy Professional PPT templates to impress your boss. Most recent surveys suggest that around 76 % students try professional Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape 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. Political WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. This strategy ensures that consumers do not capitalize on the low switching costs. The data protection has become an important issue due to consumers privacy and security concerns. WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. But the business was later expropriated by the Left Wing government. This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. Factors influencing consumers' purchase intention of green sportswear. 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. 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 achieve success in such a dynamic Textile - Apparel Clothing industry across various countries is to diversify the systematic risks of political environment. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. Analyzing the companys financial statement helps in evaluating performance of the company that further helps in making smart decisions. Today, new products are developed quickly, and supply chain partners have also gained more power. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to. 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