Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. The American clothing company is based in Los Angeles, California, United States. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. IEEE. Attitude towards immigration has come under sharp focus. *You can also browse our support articles here >. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Lululemon Athletica Inc. - 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. Lowers prices for faithful customers. 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. Customer Loyalty Program Create a customer loyalty points systems for purchases. 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. Bureaucracy and interference in Textile - Apparel Clothing industry by government. It must look at regulations and law in each of countries that they operate in. (2015). Factors influencing consumers' purchase intention of green sportswear. Starting just $19. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. The GDP growth rate will determine the Lululemon Athletica Inc.s ability to pursue its long-term growth strategies. 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 If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. While micro environment factors such as competition norms impact the competitive advantage of the firm. 24-27). WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Today, new products are developed quickly, and supply chain partners have also gained more power. Posted by Zander Henry on Class structure, hierarchy and power structure in the society. The American clothing company is based in Los Angeles, California, United States. - Gender Composition in Labor Market Lululemon Athletica can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. Transportation industry is a good case to illustrate this point. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Like all businesses they are sensitive to economic situation on global and local markets. As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. 4. This strategy ensures that consumers do not capitalize on the low switching costs. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. 1, pp. The business and marketing strategies are also influenced by migration. so converse have to change their policy to stable in the current market. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. 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 that shape strategy and competitive landscape. 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. The macro-environment factors can impact the Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Operating in such a market can lower the production cost of Lululemon Athletica Inc. Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. With growing market, there will be opportunity to grow. of the box and hire Case48 with BIG enough reputation. Copyright, patents / Intellectual property law. 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. We are here to help. The environmental standards, laws and regulations vary across different markets. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. 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. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Accordingly, we never encourage or endorse its direct Efficiency of financial markets Does Lululemon Athletica Inc. needs to raise capital in local market? In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Bureaucracy and corruption negatively influence the business environment. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Most recent surveys suggest that around 76 % students try professional 4. The marketing department of Lululemon Athletica Inc. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Tax level set for businesses by government have direct effect for how profitable the Lululemon company is. Culture is considered an important variable by international marketing managers. The power distance within any society shows the acceptance of hierarchy and income inequality. In some countries, recycling has almost become a business norm. 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. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Looking for a flexible role? Supply chain risk management framework: A fishbone analysis approach. To achieve such aims, data were collected, reviewed and analyzed within the industry. 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. Buy Professional PPT templates to impress your boss. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Dissertation At EMBA PRO, - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Below is a demonstration Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. 3. - 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. Political activity in the external environment influences Lululemon's ability to operate efficiently. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. because now a days all people not buy alder fashion product. 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). Service, Dissertation As population is ageing it will require less tech intensive products. Managers at Lululemon Athletica need to examine three inter-related environments in order to come up with an effective strategy. It is sensitive to business law regulation in different countries, and they tax regulation. PES ANALYSIS.docx. The achieve success in such a dynamic apparel stores industry across various countries is to diversify the systematic risks of political environment. Key Takeaways The Lululemon SWOT analysis shows that the company needs to improve its business and survive in the current sports apparel market. - 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Since 1960, the company encountered continued financial losses until The Limited purchased it in 1988, when Michael Jeffries became president and chief executive of A&T launching the trademark slogan casual luxury, new style of Abercrombie. Industrial safety regulations in the Consumer Goods sector. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Nike PESTLE Analysis.pdf. Environmental forces could disrupt Lululemon directly or via one of its key suppliers. 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. Bertels, H. M., Koen, P. A, & Elsum, I. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. 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). And supply chain risk management and scenario planning strategies to account for known and hypothetical political threats new. Trying to prepare themselves to install 5G Infrastructure partners have also gained more power advantage of the in. 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