Type of economic system in countries of operation what type of economic system there is and how stable it is. Financial Times Prentice Hall. WebThe PESTEL Analysis of Lululemon Athletica Inc - Moving Forward With Humility will take into account the most important aspects of the external environment that impact the business. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. Entrepreneurial spirit and broader nature of the society. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. Supply chain risk management framework: A fishbone analysis approach. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. At EMBA PRO, 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. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. It is opportunity for Lululemon. Vallester, C., Lindgreen, A., & Maon, F. (2012). - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. Customer Loyalty Program Create a customer loyalty points systems for purchases. Skill level of workforce in Textile - Apparel Clothing industry. - 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. Lululemon Athletica Inc. need to study data protection regulations to protect the customer data. Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. This is due to brand loyalty that each brand possesses by each luxury group. Webb, J. ~ 0.0 Page). Disclaimer: This work was produced by one of our academic writers to help university students with their studies. Technology is fast disrupting business models across various industries. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Lululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. By so doing, primary tools were exploited to give an in-depth information, these include: Orbis database, companies' web pages as well as academic and non-academic literatures. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Issa, T., Chang, V., & Issa, T. (2010). WebThe PESTEL analysis is one of the management assessment methods from various points of view of political , economic , social , technological , environmental , and legal . In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. It can lead to uncertainty and suppression of consumption in both short term and long term. Some of the legal factors that Lululemon Athletica Inc. leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. Sustainable business strategies and PESTEL framework. Chat with us Help, Academic Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Lululemon Athletica Inc. due to jeopardized public trust on business organizations and overall political and economic structure. With that being taken away, they will be put Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. 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. Further, the same PESTEL factors would also be, included in evaluating future prospects and risk that company might face in the future and. Nike PESTLE Analysis.pdf. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. Developing international strategies. *You can also browse our support articles here >. Copyright 2023 IPL.org All rights reserved. after sometime converse launch the denim ,t-shirts cap and everything related to sports. Out of which, the net income of the sportswear Political activity in the external environment influences Lululemon's ability to operate efficiently. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. Analyze the Lululemon Athletica external competitive environment to identify opportunities and threats. Developing a multi-criteria decision making model for PESTEL analysis. In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are 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. Lowers prices for faithful customers. Economic factors that Lululemon Athletica Inc. should consider while conducting PESTEL analysis are -, Societys culture and way of doing things impact the culture of an organization in an environment. Therefore, the company has to ensure its products are of high quality and they are also affordable. Also, to accurately analyze the performance of the company, we need to compare its performance. Strategy planning process often requires five steps With the travel and market competition added together, Chip would increasingly become disconnected with Lululemon, leaving less experienced Lululemon employees to make decisions that could tank the company. - 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. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. It is important for Lululemon Athletica Inc. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. 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. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Lululemon Athletica Inc. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. With growing market, there will be opportunity to grow. It is an Developing strategic business models and competitive advantage in the digital sector. Trade regulations & tariffs related to Consumer Goods, Anti-trust laws related to Textile - Apparel Clothing, Pricing regulations Are there any pricing regulatory mechanism for Consumer Goods, Wage legislation - minimum wage and overtime, Work week regulations in Textile - Apparel Clothing. 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. Businesses tried to come together, but it didnt always work. 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. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. - 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. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. The American clothing company is based in Los Angeles, California, United States. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. The health and efficiency of financial markets will determine Lululemon Athletica Inc.s ability to raise the capital at fair prices. academic writing services at least once in their lifetime! Anti-trust law in Textile - Apparel Clothing industry and overall in the country. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. - Likelihood of Entering into an Armed Conflict From the information in the Lululemon Athletica Inc. case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. Grnig, R., & Morschett, D. (2017). A., & Gomez, o. - 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. Economic Such an attack could take Lululemon's digital marketplace offline temporarily or cause permanent damage to its information assets (Lululemon, 2017). During the 1960 to 1970 the tennis shoes started to move from games footwear to easygoing footwear and turned into an image for the cheap and grime cultures. 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. Posted by Zander Henry on Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. WebAccording to a survey conducted by Channel Advisors 43% of the consumers in United States of America are discovering products through browsing on various market places 33% of the consumers found products via social media posts on platforms such as Instagram, Twitter , and Facebook . Another threat to Lululemon is increased foreign costs. As Lululemon heavily relies on foreign manufacturers to make their products at a lower price, they have a greater risk of losing those high margins if foreign costs rise. (2015). We make the greatest data maps. 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