Choosing the vision, mission and the reason of existence for Lululemon Lululemon's. High GDP also signals the consumers ability to spend more on offered products. We make the greatest data maps. Do you have a 2:1 degree or higher? - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Technology is fast disrupting business models across various industries. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. By association, should these companies engage in unethical business practices They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. Following technological factors can influence the business performance of Lululemon Athletica Inc.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Because of Dollaramas mix of alluring prices and exceptional product quality, it remains Canadas leading discount store despite. 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. 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 . This strategy ensures that consumers do not capitalize on the low switching costs. Grnig, R., & Morschett, D. (2017). Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Attitudes (health, environmental consciousness, etc. Published: 2nd Nov 2020. 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. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. - 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. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Webb, J. The strength of high price product strategy is that Nike can earn more on each single item. In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. Political factors play a significant role in determining the factors that can impact Lululemon Athletica Inc.'s long term profitability in a certain country or market. on WhatsApp for any queries. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. 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. It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Soon, trusts became a new form limiting competition. Nike PESTLE Analysis.pdf. This gives Lululemon a lot of choice in picking who they want to buy supplies from. Changes in weather and climatic conditions can influence business efficiency. The business and marketing strategies are also influenced by migration. 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. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lululemon Athletica. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. 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. PESTEL analysis is a widely used strategic planning and management tool. (2012). Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Attitude towards immigration has come under sharp focus. Alternatively, Lululemon's business activities abroad are also subject to the rule-making of local political leaders (Bertels, Koen, & Elsum, 2015). Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. Efficiency of financial markets Does Lululemon Athletica Inc. needs to raise capital in local market? 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. Also, to accurately analyze the performance of the company, we need to compare its performance. (2015). If you need help with something similar, 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. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Fern Fort University. 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). Academic writing has no room for errors and mistakes. It is not only well known but has a rich history. Huawei, being a multinational company is affected by the external business environment. Particularly put extensive brand portfolio to cover different customer segments. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. 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. Use of social media has become common in a modern business environment. As mentioned, marketers cannot control the factors of the external environment. The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. Vallester, C., Lindgreen, A., & Maon, F. (2012). And change their design with the change of fashion. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Yksel, I. 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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Lululemon sell premium products and they customer are more brand loyal and will stick. 1, pp. (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. So Dollarama struggles to find a balance between competitive prices and profitable prices. Subscribe now to get your discount coupon *Only Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Seifert, C. & Chattaraman, V. (2017). - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. - 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. 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. Starting just $19. (2009). The Definition of PESTEL / PEST / STEP Analysis. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. It is an 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. 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. Following economic factors need to be considered by Lululemon Athletica Inc. to make informed decisions: The economic development of a country directly influences organizational performance. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. MarketLine. WebThe Lululemon athletica in 2005 PESTEL Analysis will look at the external factors political, economic, social, technological, environmental, and legal. as they determine the overall economic environment of the country. Some countries offer subsidies for encouraging investment in renewable technologies. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Research and development activities are highly important in an environment characterized by creative disruption. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. Strategy planning process often requires five steps 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. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. 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. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Service, Dissertation - 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. 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). These rules can have a direct role in creating the strategies and approaches. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. 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). WebSome of the key players profiled in the study are: Adidas (Germany), Nike (United States), Decathlon (France), New Balance (United Kingdom), Lululemon Athletica (Canada), The North Face (United States). Lululemon Athletica should be aware of presence of such practices in a country. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. 24-27). 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. However, it started off Entrepreneurial spirit and broader nature of the society. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. 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. Scope of the Report of Sports Bra and Underwear Lululemon Athletica Inc. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. Choosing the vision, mission and the Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. 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. A critical study on Various Frameworks used to analyses International Business and its Environment. This will help in better predicting the environment policy of the country. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. 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