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). The data protection has become an important issue due to consumers privacy and security concerns. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Changes in weather and climatic conditions can influence business efficiency. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. . You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Lululemon Athletica Inc. - 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. Wall, S., Minocha, S., & Rees, B. 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. If you need help with something similar, 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. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. Explain and justify your rating. Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. 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. so there is a big opportunities for converse from these companies. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Attitude towards immigration has come under sharp focus. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Below is a demonstration WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. 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.. - 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. Why consumers' aesthetic sensitivity matters in apparel design evaluation. Abercrombie & Fitch brand focuses on offering apparel that reflected the youthful lifestyle for a target audience, which was college students, designed to encourage teamwork and creativity On February 2007, A&F retailer operated 944 stores in 49 States, District of Columbia and Canada. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. Warning! Key Takeaways The Lululemon SWOT analysis shows that the company needs to improve its business and survive in the current sports apparel market. 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. WebIntroduction to PESTEL Analysis PESTEL Analysis / PEST / STEP Analysis for Lululemon Athletica (United States) At Oak Spring University we have updated the Lululemon Athletica PESTEL Analysis is light of emerging geo strategic and geo-political factors such as Russia Ukraine war, tensions between China & Taiwan, chances of WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. University of San Carlos - Main Campus. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. (2015). Integrity, Essay Writing Alternatively, Lululemon's business activities abroad are also subject to the rule-making of local political leaders (Bertels, Koen, & Elsum, 2015). submission, reproduction, or any other misuse in any manner. 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 Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Issa, T., Chang, V., & Issa, T. (2010). 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. It must look at regulations and law in each of countries that they operate in. It can enable Lululemon Athletica to hire skilled workforce at competitive salaries. The Essay Writing ExpertsUS Essay Experts. Daidj, N. Government intervention in the free market and related Consumer Goods. PESTEL analysis is mainly the assessment of macro environment factors. If you have BIG dreams to score BIG, think out Amazing Business Data Maps. Definition of PESTEL / PEST / STEP Analysis. Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. 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. Rate each of the forces (High, Medium, or Low). Huawei, being a multinational company is affected by the external business environment. 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. Course Hero is not sponsored or endorsed by any college or university. Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. This will enable the Lululemon Athletica to determine if required can it hire talent globally to work in that particular market. Should nations where Lululemon operates enact disadvantageous tariffs, embargoes, or trade restrictions, the models Lululemon depended on for its expansion strategy could become obsolete (Lululemon, 2017). Secondly governments from all parties adhere to the treaties made by the previous governments. Pearson Education. 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. 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. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. 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. 2. 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. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Published by HBR Publications. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. To achieve such aims, data were collected, reviewed and analyzed within the industry. - 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. PES ANALYSIS.docx. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. 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 report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Technology analysis involves understanding the following impacts -, Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Developing international strategies. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Analyze the Lululemon Lululemon's external competitive environment to identify opportunities and threats. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. 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. WebThe SWOT and PESTEL analysis report of Lululemon Athletica manifests a discussion on the intricate internal and external factors concerning Lululemon Athletica's brand, its This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. 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). Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. 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