WebPESTEL Analysis Resources BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their Yksel, I. Comparative advantages of host country and Consumer Goods sector in the particular country. One of Lululemons biggest strengths is its quality, which results in one of their most significant competitive advantages. These rules can have a direct role in creating the strategies and approaches. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. Businesses tried to come together, but it didnt always work. (2016). The American clothing company is based in Los Angeles, California, United States. Explain and justify your rating. 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. Article continues after ad 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. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. Each society has distinctive norms and values that play an important role in shaping consumer behavior. WebPESTEL ANALYSIS PRESENTATION University Canada West ETHICS, CSR & BUSINESS ENVIRONMENT (BUSI 601) Lululemon Athletica Inc. All the regulations about design patent need to be monitored by company. Economic factors that Lululemon Athletica Inc. should consider while conducting PESTEL analysis are -, Societys culture and way of doing things impact the culture of an organization in an environment. Webb, J. 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. 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. Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. Natural disasters in South East Asia and South Asia especially a concern because 82% 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. Competition Levels - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. Issa, T., Chang, V., & Issa, T. (2010). - Birth Rate Birth rate is also a good indicator of future demand. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. (2012). WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. 3. Too new or too complex? 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 Amazing Business Data Maps. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Help, Academic Do you have a 2:1 degree or higher? A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. *You can also browse our support articles here >. Copyright 2023 IPL.org All rights reserved. Attitudes (health, environmental consciousness, etc. This is due to brand loyalty that each brand possesses by each luxury group. - 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. These factors can have an impact on Arbys such as the health and safety rules provided by the government of the state/country in which the Arbys division works. 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. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Below is a demonstration Most recent surveys suggest that around 76 % students try professional (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. The adoption of new technologies has shortened the lifecycle of new product development. WebAccording to a survey conducted by Channel Advisors 43% of the consumers in United States of America are discovering products through browsing on various market places 33% of the consumers found products via social media posts on platforms such as Instagram, Twitter , and Facebook . The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lululemon Athletica. This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. 1, pp. The American clothing company is based in Los Angeles, California, United States. Lululemon Athletica Inc. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. Porter Five Forces A strategic framework for technology evaluation. It is not only well known but has a rich history. This gives Lululemon a lot of choice in picking who they want to buy supplies from. This will help in better predicting the environment policy of the country. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. 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. ~ 0.0 Page). 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. WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. Definition of PESTEL / PEST / STEP Analysis. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. MarketLine. 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 - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. The bond rating of national government is investment grade. 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. 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. Buy Professional PPT templates to impress your boss. If you are looking for additional support andresources related to PESTELAnalysis, please find more PESTEL Analysisresources below: To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! 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. It must look at regulations and law in each of countries that they operate in. 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. 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. 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). 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. 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