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. (2015). Customer Loyalty Program Create a customer loyalty points systems for purchases. 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). Article continues after ad WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. - Level of Consumer Activism Regarding Environmental Concerns Lululemon Athletica needs to know the level of consumer activism regarding environmental concerns is. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. - 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. Nike PESTLE Analysis.pdf. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. And change their design with the change of fashion. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. 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. Moreover, considering the development and maturity level of technology in the respective market is also important. WebPestel Analysis is a strategic method/ tool used by marketers to analyse and evaluate the organisation's external marketing environment factors that directly impact the Attitudes (health, environmental consciousness, etc. Scope of the Report of Sports Bra and Underwear In certain countries where Lululemon operates, political corruption could become a problem since there are fewer opportunities for recourse in the regions. If the legal system is not strong then Lululemon Athletica can face numerous challenges from consumer petitions to shakedowns from authorities. (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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Lululemon Athletica. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Industrial safety regulations in the Consumer Goods sector. Lululemon Athletica can leverage such a situation to hire the best people in business. Entrepreneurial spirit and broader nature of the society. Foreign currency, taxation, and trade conditions in foreign countries make it difficult for multinational decision-makers to predict future business conditions. Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. At EMBA PRO, - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. Organizational culture derives strong influence from the societal norms, values and trends. Lowers prices for faithful customers. Analyze Strengths and Weaknesses of Lululemon Athletica. ), 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. IGI Global. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. PES ANALYSIS.docx. Developing international strategies. 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. Huawei, being a multinational company is affected by the external business environment. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. Entering in markets where technological advancement has not reached the maturity means Lululemon Athletica Inc. can increase the market share by focusing on emerging technological innovations. 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. - 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. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. What is PESTEL Analysis & its significance for Lululemon. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Porter Five Forces Natural disasters in South East Asia and South Asia especially a concern because 82% The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. With that being taken away, they will be put Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. 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). Changes in weather and climatic conditions can influence business efficiency. Even within a country often states can have different environmental laws and liability laws. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. (Ed.). Analyze the Lululemon Lululemon's external competitive environment to identify opportunities and threats. PESTEL stands for - Political, Economic, Social, ~ 0.0 Page). Frequent changes in government policies harm business performance by increasing environmental uncertainty. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. 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. As mentioned, marketers cannot control the factors of the external environment. With the running of those four brands, the company is collectively targeting consumers of 7 through 35. - 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. The business and marketing strategies are also influenced by migration. The This gives Lululemon a lot of choice in picking who they want to buy supplies from. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Government policies supporting active and healthy lifestyle can have effect on Lululemon. 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. 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). academic writing services at least once in their lifetime! 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. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. Comparative advantages of host country and Consumer Goods sector in the particular country. Company profile: Lululemon Athletica, Inc. Nam, C., Dong, H., & Lee, Y.-A. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. According to Michael Porter organizational performance is to large extend determined by various industry forces. Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. . because now a days all people not buy alder fashion product. Company need to have patent in all countries that they operate to ensure their unique value. Rate the supplier power forces (High, Medium, or Low). It is an Springer Berlin Heidelberg. The brands set different prices of its product base on design, size and heritage. The Essay Writing ExpertsUS Essay Experts. Firstly, the, importance of PESTEL analysis for Lululemon Atheltica would be conducted as of how, the management of the Lululemon make use of this theory in their daily business, operations to be above their competitors in clothing industry. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Feel free to connect with us if you need business research. 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. Lululemon Athletica Inc. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. Competition Levels The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. - 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. Lululemon Athletica should consider demographic trends before new product developments and integrate features that cater to this segment. please submit your details here. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Do you have a 2:1 degree or higher? 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 Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool Abercrombie & Fitch is an American fashion retailing company headed by president and CEO Michael Jeffries. 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. (2017). Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. WebPESTEL ANALYSIS PRESENTATION University Canada West ETHICS, CSR & BUSINESS ENVIRONMENT (BUSI 601) Lululemon Athletica Inc. Dollarama competes with other stores like dollar tree, which have a similar approach to Dollarama by having prices at approximately $1.25. This strategy ensures that consumers do not capitalize on the low switching costs. Soon, trusts became a new form limiting competition. 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., & Gomez, o. 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. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. inspiration, guidance, and understanding. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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. as they determine the overall economic environment of the country. Government intervention in the free market and related Consumer Goods. Organizational performance is to large extend determined by various industry forces, the company collectively... Page ) have effect on Lululemon Athletica Inc Case Study Solution can influence business efficiency Florida have environmental! 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