Buy Professional PPT templates to impress your boss. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. - Health & Safety Laws What are the health and safety laws in the country and what Lululemon Athletica needs to do to comply with them. Academic writing has no room for errors and mistakes. 3. 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. 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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The low-priced products policy could widen the customer group and attract more buyers to boost the sales. A critical study on Various Frameworks used to analyses International Business and its Environment. Similarly, it is important to understand the industry lifecycle stage. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. 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. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Environmental forces could disrupt Lululemon directly or via one of its key suppliers. Company originally is from Canada and when they are entering to the new markets they might encounter Strict tax laws against foreign enterprises. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Government intervention in the free market and related Consumer Goods. Choosing the vision, mission and the It is important for Lululemon Athletica Inc. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. on WhatsApp for any queries. 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). Soon, trusts became a new form limiting competition. The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Managers at Lululemon Athletica need to examine three inter-related environments in order to come up with an effective strategy. Technology is fast disrupting business models across various industries. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. Bureaucracy and corruption negatively influence the business environment. The achieve success in such a dynamic apparel stores industry across various countries is to diversify the systematic risks of political environment. Lowers prices for faithful customers. 3. What is PESTEL Analysis & its significance for Lululemon. inspiration, guidance, and understanding. In addition, the company's chief executive officer had stepped down. Feel free to connect with us if you need business research. 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. 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). Type of economic system in countries of operation what type of economic system there is and how stable it is. Ignorance in this regard can cause undesired circumstances for Lululemon Athletica Inc., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Attitudes (health, environmental consciousness, etc. Porter Five Forces correct email will be accepted, (Approximately In the 1920 Chuck Taylor turned into the representative for Converse and for the following couple of decades the Converse tennis shoes was the main shoes in basket ball. Copyright 2023 IPL.org All rights reserved. In this situation, the suppliers have a low level of bargaining power. 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. So the decade long profits didnt materialize in the end. 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. As companies increase the availability of product offerings through e-commerce channels, cyber-attacks become a graver threat. Vallester, C., Lindgreen, A., & Maon, F. (2012). POLITICAL FACTORS POLITICAL STABILTY & IMPORTANCE OF TEXTILE TAX REGULATION INTELLECTUAL PROPERTY PROTECTION Lululemon Athletica Inc. High political stability provides a GSTF International Journal on Computing, 1(1), 73-80. 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 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). Even within a country often states can have different environmental laws and liability laws. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. Currently, Lululemon Athletica Inc. is present in different countries, each having own political tensions. 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. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Culture is considered an important variable by international marketing managers. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. All work is written to order. 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. Sustainable business strategies and PESTEL framework. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. - 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. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. Lululemon Athletica should consider demographic trends before new product developments and integrate features that cater to this segment. 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. - Immigration Policies and Level of Immigration What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. We are here to help. 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). - 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. 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. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Common materials used in apparel making such as rubber and cotton are readily available. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Lululemon Athletica Inc. Lululemon Atheltica. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. Entering in markets where technological advancement has not reached the maturity means Lululemon Athletica Inc. can increase the market share by focusing on emerging technological innovations. (2008, December). Taxi industry is now dominated by players like Uber and Lyft. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Lululemon Athletica. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Developing international strategies. Moreover, health-associated campaigns by the government have an impact on the food chains like Arbys. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. Nike PESTLE Analysis.pdf. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Nevertheless, Dollaramas main competition all strive to reduce prices and maintain exceptional quality, which can be stressful for these companies because when you lower the prices you also lower the profit. Similarly, if environmental hazards damage raw material sources manufacturers depend on for making Lululemon athletic apparel, the company may not be able to meet product demand levels. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. 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). A strategic framework for technology evaluation. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. If you need help with something similar, Due to limited information from countries' perspective (language barriers), this paper will analyze the European union clothing industry as a whole, in term of the development, the competitiveness and the disparity between top and bottom players in regards to financial performance. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. 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. - 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. The American clothing company is based in Los Angeles, California, United States. The Entering in countries with high taxation level will directly influence the profitability of Lululemon Athletica Inc. High taxation affects international trade and prevents exports. With rapid numbers of factories means more competition. WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. 2. 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. 2. 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. Like all businesses they are sensitive to economic situation on global and local markets. Integrity, Marketing strategy of Lululemon Athletica Inc, Lululemon Athletica Inc Case Analysis and Case Solution, Lululemon Athletica Inc Case Study Solution. - Mobile Phone & Internet Penetration Lululemon Athletica should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. Proposal, Assignment Writing Use research as, 1. 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