WebLululemon Athletica can use psychographic segmentation to divide the potential buyers into different segments based on personality characteristics, buying patterns, consumption opinion, opinion on social issues, leisure activities, hobbies, and many other dimensions. Exchange rates & stability of host country currency. Moreover, considering the development and maturity level of technology in the respective market is also important. European Journal of Innovation Management, 16(3), 285-300. Nobody get fired for buying our Business Reports Templates. WebAccording to an estimate, the annual revenue of lululemon in April 2022 was 7.468 billion dollars, and it has increased by 27.5%. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Lululemon Athletica Inc. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. - 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. 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. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Course Hero is not sponsored or endorsed by any college or university. 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. Vallester, C., Lindgreen, A., & Maon, F. (2012). The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. No plagiarism, guaranteed! 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. High unemployment signals the availability of surplus labor at comparatively lower wages. Louis Vuitton is known globally and has a strong image in Singapore, China, Hong Kong and Japan which are leading financial hubs and individuals with high net worth. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. Explain and justify your rating. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. 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. It is opportunity for Lululemon. In some countries, recycling has almost become a business norm. Too new or too complex? Desai, K. J. Strategy planning process often requires five steps This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. In such an environment, Lululemon Athletica Inc. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Government intervention in the free market and related Consumer Goods. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Lululemon Athletica. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 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. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. Info: 1099 words (4 pages) PESTEL Example - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Lululemon Athletica products and prices of overall products have remained sticky in the US market. Lululemon Athletica Inc. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. Lululemon Athletica Inc. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) High GDP also signals the consumers ability to spend more on offered products. Exploring strategy. Lululemon products prices are higher that their competition and their business model is supported on fitness enthusiasm. Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Today, new products are developed quickly, and supply chain partners have also gained more power. 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. The achieve success in such a dynamic Textile - Apparel Clothing industry across various countries is to diversify the systematic risks of political environment. 3. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. 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. Spanish oil giant Repsol had to face a similar instance. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. It pressurizes the Lululemon Athletica Inc. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. WebView Lululemon External Analysis Worksheet Part 1.doc from MGT 472 at Salem State University. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. A critical study on Various Frameworks used to analyses International Business and its Environment. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Lululemon Athletica should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. (2018). While micro environment factors such as competition norms impact the competitive advantage of the firm. Company need to have patent in all countries that they operate to ensure their unique value. Organizational culture derives strong influence from the societal norms, values and trends. Just as Starbucks, Bloomingdales and Sephora use a point system, lululemon can incorporate rewards for repeat shoppers.49 Increases brand loyalty in a competitive market. Explain. and cannot be used for research or reference purposes. Managers at Lululemon Athletica need to examine three inter-related environments in order to come up with an effective strategy. Financial Times Prentice Hall. The purpose of this assignment is to give a close attention to the financial perspective of the Mdelic Wasatch Outerwear as we examine past and current financial data and evaluate company's performance and financial position. Nike PESTLE Analysis.pdf. 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). POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Legal is the sixth factor of PESTEL analysis. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. (Ed.). Type of economic system in countries of operation what type of economic system there is and how stable it is. The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. However, it started off 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. Natural disasters in South East Asia and South Asia especially a concern because 82% Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. Daidj, N. Common materials used in apparel making such as rubber and cotton are readily available. 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. Understanding the impact of technology on firms business models. Lululemon Athletica Inc. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging. to get Coupon Code. Proposal, Question ~ 0.0 Page). IGI Global. Send your data or let us do the research. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Attitude towards immigration has come under sharp focus. PESTEL stands for Political, Social, Economic, - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Technology is fast disrupting business models across various industries. Check your email Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. (2016). International business. - Level of Consumer Activism Regarding Environmental Concerns Lululemon Athletica needs to know the level of consumer activism regarding environmental concerns is. 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 We're here to answer any questions you have about our services. 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. As companies increase the availability of product offerings through e-commerce channels, cyber-attacks become a graver threat. 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 Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Technological trends can be used to start the creative social media campaigns for developing online brand communities. Proposal, Assignment Writing WebThe PESTEL analysis is one of the management assessment methods from various points of view of political , economic , social , technological , environmental , and legal . The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. Accordingly, we never encourage or endorse its direct It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. - 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. Some examples of environmental factors that Lululemon Athletica Inc. need to consider are given below. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. Similarly, it is important to understand the industry lifecycle stage. Natural disasters in South East Asia and South Asia especially a concern because 82% of the Lululemon products come from manufacturing in these regions (Lululemon, 2017). Political after sometime converse launch the denim ,t-shirts cap and everything related to sports. There is a growing trend towards the use of green/eco-friendly products. The GDP growth rate will determine the Lululemon Athletica Inc.s ability to pursue its long-term growth strategies. Developing strategic business models and competitive advantage in the digital sector. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. Soon, trusts became a new form limiting competition. At EMBA PRO, If you need help with something similar, - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. 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. (2017). The bond rating of national government is investment grade. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. Customer Loyalty Program Create a customer loyalty points systems for purchases. Warning! For example Uber employment system is not consistent with French laws and it is facing challenges in the country. 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). 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. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. 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. Copyright, patents / Intellectual property law. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Lululemon Athletica Inc. Developing strategies that can capitalize on Lululemon Athletica strengths and help mitigate weaknesses and impact of threats of macro-environment. Issa, T., Chang, V., & Issa, T. (2010). 3. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Like all businesses they are sensitive to economic situation on global and local markets. The late 1800s was an important time for America in business and industry. The power distance within any society shows the acceptance of hierarchy and income inequality. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. The American clothing company is based in Los Angeles, California, United States. 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