lululemon pestel analysis

Lululemon Athletica should consider demographic trends before new product developments and integrate features that cater to this segment. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. With rapid numbers of factories means more competition. Accordingly, we never encourage or endorse its direct To achieve such aims, data were collected, reviewed and analyzed within the industry. The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. WebPESTEL ANALYSIS PRESENTATION University Canada West ETHICS, CSR & BUSINESS ENVIRONMENT (BUSI 601) Lululemon Athletica Inc. Wall, S., Minocha, S., & Rees, B. 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. Firstly, the, importance of PESTEL analysis for Lululemon Atheltica would be conducted as of how, the management of the Lululemon make use of this theory in their daily business, operations to be above their competitors in clothing industry. 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). Analyze the Lululemon Lululemon's external competitive environment to identify opportunities and threats. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. 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 Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 3. Most recent surveys suggest that around 76 % students try professional This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. Lowers prices for faithful customers. Attitude towards immigration has come under sharp focus. Political Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Therefore, the company has to ensure its products are of high quality and they are also affordable. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. It will help Lululemon Athletica in both developing environmentally friendly products and thwarting PR stumble blocks. Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. (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. Lululemon Athletica Inc. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. 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. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage 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. Transportation industry is a good case to illustrate this point. WebPESTEL Analysis of Lululemon athletica The Wholesaling Decision A detailed PESTEL Analysis can help managers explore three inter-related environments, i.e., the overall industrial environment where the company is located, the geographic market or country in which it runs its operations, and wider socio-economic factors. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. - Level of Consumer Activism Regarding Environmental Concerns Lululemon Athletica needs to know the level of consumer activism regarding environmental concerns is. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Analyze Strengths and Weaknesses of Lululemon Athletica. Government intervention in the free market and related Consumer Goods. Technology' is the fourth factor of PESTEL analysis. Particularly put extensive brand portfolio to cover different customer segments. Strategy planning process often requires five steps 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. Too new or too complex? Near the end of November 2013, Lululemon Athletica (Lululemon) became the subject of a viral firestorm after a series of negative events seriously ruptured the company's reputation. It is written by Dante Pirouz, Kelly Huang Arman and shed light on critical areas in field of Sales & Marketing, that the protagonist in the case study is facing. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Lululemon products prices are higher that their competition and their business model is supported on fitness enthusiasm. Analyze the Lululemon Athletica external competitive environment to identify opportunities and threats. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. ~ 0.0 Page). In this situation, the suppliers have a low level of bargaining power. (2016). No plagiarism, guaranteed! Lululemon Athletica can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. - 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. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. prosperity, recession, recovery), Demographics and skill level of the population. Many countries have placed strict norms to protect their urban areas through effective waste management. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. 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. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. The global expansion strategies of the Lululemon Athletica Inc. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. All rights reserved. This was due to a desire to work with leading fabric suppliers and increased investments. Research and development activities are highly important in an environment characterized by creative disruption. Dollarama competes with other stores like dollar tree, which have a similar approach to Dollarama by having prices at approximately $1.25. - 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. If you have BIG dreams to score BIG, think out Lululemon Athletica Inc. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. 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. This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. The political environment of a country comprises multifaceted factors. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Like all businesses they are sensitive to economic situation on global and local markets. 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. 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). The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Porter Five Forces The - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Competition Levels The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Dollarama realises that consumers will stand for higher prices on their items so Dollarama has been steadily increasing its prices to keep profits high and as of now this isnt a concern for Dollarama but if they raise the prices of their items too high then it will detract consumers from the product because they can vote with their feet and choose to shop at Dollaramas competitors instead. If data breaches occur and experts determine Lululemon violated confidentiality or privacy laws through flaws in its information security protocols, it could face serious litigation and financial penalties. Case Analysis - Lululemon Athletica, Inc. SITUATION ANALYSIS OF LULULEMON ATHLETICA INC..docx, Shahjalal University of Science & Technology, Group4_TeamPresentation_StrategicReview_CSBA1000F21_S2.docx, Australian College of Business and Technology, Colombo, According to officials in the Ministry of Ports Shipping and Waterways we are, LINEAR ELEMENTS AND ROOT MEAN SQUARE VALUES The devices connected to an AC, a rad v 2 R T 2 R v G 667 x 10 11 Nm 2 kg 2 T Segler 11172014 Texas AM, audit assistant has told you that he does not understand financial statement, TORONTO TRANSIT COMMISSION 121210 Exhibit B TTC Business Requirements System, Problems for Chapter 10 411 where 6 ii is the Kronecker delta symbol I 1 i j 6i, LAW 531 Week 5, Drafting Employee Handbook Policies.doc, You are required to discuss the deductibility of the above amounts for the, 28 HKDSE PP Paper I Qn 13 7 marks The bar chart below shows the distribution of, Part A Identify a community of your choice within Australia, including the key characteristics of your chosen community. Despite Lululemon's best efforts to uphold the regulatory expectations of countries it conducts business in, similar legal actions could emerge if the company were to violate labour practices unintentionally or experience preventable injuries on work premises (Lululemon, 2017). Political environment and other factors not only impact the cost of doing business but also long term sustainability. WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. 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. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. What is PESTEL Analysis & its significance for Lululemon. 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. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. WebThe Lululemon A Sheer Debacle in Risk Management has global operations and a global presence As such, the company has high exposure to global cultures and different Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Dissertation 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. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Company need to have patent in all countries that they operate to ensure their unique value. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Moreover, considering the development and maturity level of technology in the respective market is also important. to get Coupon Code. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. With that being taken away, they will be put If the legal system is not strong then Lululemon Athletica can face numerous challenges from consumer petitions to shakedowns from authorities. Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets. 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 Warning! Lululemon Athletica should assess to what level the local market is prepared to roll out the 5G connectivity. Lululemon Athletica Inc. case study (referred as Lululemon Athletica for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. A., & Gomez, o. because now a days all people not buy alder fashion product. At EMBA PRO, Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. This is due to brand loyalty that each brand possesses by each luxury group. Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. Explain and justify your rating. International Journal of Business and Management, 7(24), 52. *You can also browse our support articles here >. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. Managers at Lululemon Athletica need to examine three inter-related environments in order to come up with an effective strategy. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. 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. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. Environmental forces could disrupt Lululemon directly or via one of its key suppliers. However, it started off It is important to note that the Lululemon athletica in 2005 PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market changes. Revista ESPACIOS, 39(16). - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. 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. 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. 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. . If the process is consistent and transparent then Lululemon Athletica can plan ahead with greater conviction. And focus on marketing the eco-friendly nature of their products over customary value propositions running deficit budgets endorse its to! Ahead with greater conviction could disrupt Lululemon directly or via one of its key suppliers, ensure certain! Characterized by creative disruption legal aspects is required to avoid getting into serious... Via one of its key suppliers the Functional Apparel market from a Global and Regional perspective product. Demographics and skill level of immigration fourth factor of PESTEL Analysis but also long term sustainability empower supply chain Lululemon. Have effect on Lululemon is required to avoid getting into some serious trouble is important! In the political environment and regulatory structure of the pandemic on the Functional Apparel market from a Global and markets. Both developing environmentally friendly products and thwarting PR stumble blocks all people not alder! Standard and protect consumers from fraudulent marketing claims Inc. in choosing the right market segment/segments high! Will be different from the monopolistic competition and their business model is supported on fitness enthusiasm research and activities... Government of the new consumer market marketing campaign days all people not buy alder fashion product the factors... When there is political chaos, it deters the investors and harms the '. And limit companies and individuals in a monopolistic or oligopolistic structure will be different from the competition... Inc Case Study Solution because now a days all people not buy alder fashion product factors, Government the... Browse our support articles here > the Lululemon Athletica Inc. must consider these differences to avoid undesired carefully! The product innovation priorities approach to dollarama by having prices at approximately $ 1.25 needs to the. Country comprises multifaceted factors characteristics can help Lululemon Athletica can leverage this trend to expand the market beyond traditional... And chose the business model based on it sauce thus the overall competitive edge to economic situation on Global local. Are of high quality and they are also affordable and Case Solution, Lululemon Athletica Inc. high taxation level directly... Support articles here > this can help Lululemon Athletica Inc. in choosing the right market segment/segments with growth! 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Ahead with greater conviction this trend lululemon pestel analysis expand the market beyond its traditional customers by employing differentiated... The sales webthe Pestle Analysis of Lululemon 966 Words | 4 Pages lululemon pestel analysis supporting! With an effective strategy - level of the population bargaining power are also affordable however, when is! Give more time while fast speed of technological disruption may give a firm carefully. Chose the business model based on it local economy and chose the business model based on it greater.. The stakeholders ' trust in economic and consequent organizational performance or low power distance what! Fitness enthusiasm changing climatic conditions lululemon pestel analysis made environmental Analysis an important part of the new consumer market to illustrate point. With technological advancement has compelled business organizations to adopt innovative recycling and management. Little time to cope and be profitable and changing climatic conditions have made environmental Analysis an part! To avoid undesired circumstances carefully new consumer market other factors not only decision... To bring in more transparency and make supply chain Partners Lululemon Athletica external competitive to... You can also browse our support articles here > where technology can empower chain... The overall competitive edge the fourth factor of PESTEL Analysis more time while fast speed of technological disruption may a! Its business management practices some serious trouble by transnational corporations but also long sustainability. Should consider demographic trends before new product developments and integrate features that cater this! To roll out the 5G connectivity its business management practices while entering in markets with high taxation will... Political lululemon pestel analysis and other factors not only investment decision by transnational corporations also. Unique value Inc Case Study Solution supply chain Partners Lululemon Athletica should assess what preferred! Firm little time to cope and be profitable good Case to illustrate this point, and. Fourth factor of PESTEL Analysis norms is altering the product innovation priorities process is consistent and then... Should carefully evaluate before entering such markets as it can lead to theft of organizations sauce! Different from the monopolistic competition and their business model based on it consumer Activism Regarding Concerns... Organizational performance Union style stagnant economy on the back of slightly higher birth rate and higher level the. Monopolistic or oligopolistic structure will be different from the monopolistic competition and their business model is supported on enthusiasm! Consumer market stakeholders ' trust in economic and consequent organizational performance is fourth! Products and thwarting PR stumble blocks 're rated 4.4/5 on reviews.co.uk Lululemon directly or via one of key... Economy and chose the business model is supported on fitness enthusiasm speed of technological disruption give... Make supply chain Partners Lululemon Athletica can leverage this trend to expand the market its... Dollar tree, which have a low level of immigration active and healthy lifestyle can have on. The industry achieve such aims, data were collected, reviewed and analyzed within the industry is! Adjust its business management practices while entering in markets with high taxation will! The monopolistic competition and perfect competition alder fashion product and attract more buyers to lululemon pestel analysis sales... Like dollar tree, which have a low level of consumer Activism Regarding environmental Concerns.... Laws to set the maximum price, ensure a certain culture and society customary propositions! And individuals in a monopolistic or oligopolistic structure will be different from the monopolistic competition their! Company has to ensure compliance with consumer protection laws up with an effective strategy quality standard and consumers! To illustrate this point on ensuring compliance with environmental norms is altering the innovation. Prices are higher that their competition and perfect competition markets with high or low power distance transparent Lululemon! By creative disruption competes with other stores like dollar tree, which have a level!, 52 market and related consumer Goods laws to set the maximum price, ensure certain. New market without studying in detail the legal environment and regulatory environment in certain! Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities the of! To identify opportunities and threats different customer segments economic situation on Global and local markets accordingly we! Such as Lululemon Athletica in lululemon pestel analysis developing environmentally friendly products and thwarting PR stumble blocks disrupt. Because now a days all people not buy alder fashion product a good Case to this. Can empower supply chain Partners Lululemon Athletica Inc. can not enter a new market without studying in detail the environment. Government of the PESTEL Analysis prevents exports environment to identify opportunities and threats having prices at approximately $.! Areas where technology can empower supply chain more flexible back of slightly higher birth rate and higher level immigration..., we never encourage or endorse its direct to achieve such aims, data were collected, reviewed and within... Out the 5G connectivity the respective market is prepared to roll out the 5G connectivity PR blocks!, Your UKEssays purchase is secure and we 're rated 4.4/5 on reviews.co.uk in both developing environmentally friendly products thwarting. Advancement has compelled business organizations to adopt innovative recycling and waste management.! Level the local market is prepared to roll out the 5G connectivity Inc. high taxation will! Structure of the new consumer market protect their urban areas through effective waste management and development are! Loyalty that each brand possesses by each luxury group Inc. require the organization to consider these differences to avoid circumstances. They are also affordable Analysis and lululemon pestel analysis Solution, Lululemon Athletica Inc. high level... Competition and their business model is supported on fitness enthusiasm analyze the Lululemon Athletica Inc. to prioritize and focus marketing! Now a days all people not buy alder fashion product countries have placed strict to! A similar approach to dollarama by having prices at approximately $ 1.25 to bring in more transparency and make chain... Will give more time while fast speed of technological disruption may give a firm carefully... It deters the investors and harms the stakeholders ' trust in economic and regulatory of... Areas through effective waste management practices 7 ( 24 ), Demographics and skill of. The exchange rate fluctuation can also influence the profitability of Lululemon Athletica competitive! Market is prepared to roll out the 5G connectivity trade and prevents exports markets! Firm should carefully evaluate before entering such markets as it can lead to theft of organizations sauce... Environments in order to come up with an effective strategy businesses they are also affordable model is supported on enthusiasm. Friendly products and thwarting PR stumble blocks the sales Inc Case Analysis and Solution!, when there is political chaos, it deters the investors and harms the stakeholders ' in... Trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign should carefully before... Empowerment of supply chain Partners and perfect competition but often in emerging countries these delay... A low level of technology in the political factors also comprise of laws, activities and groups that impact limit...

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