- 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. Competition Levels The business practices of the Lululemon Athletica Inc. are influenced by the prevailing economic structure. Provide a rationale for why you have selected this community in relation to, PartA Identify a community ( Aboriginal and Torres Strait Islander community ) of your choice within Australia, including the key characteristics of your chosen community. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. : A comparative content analysis of mainstream yoga lifestyle magazine covers. There is a growing trend towards the use of green/eco-friendly products. Some societies encourage entrepreneurship while some dont. The international presence of Lululemon Athletica Inc. require the organization to consider these differences to avoid undesired circumstances carefully. Some countries offer subsidies for encouraging investment in renewable technologies. Help, Academic Company need to have patent in all countries that they operate to ensure their unique value. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. Springer Berlin Heidelberg. 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. 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. The local business that has been selected to conduct PESTEL analysis is one of the most, renowned clothing brand in North America i.e. Because of Dollaramas mix of alluring prices and exceptional product quality, it remains Canadas leading discount store despite. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. 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. Dissertation Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. 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. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. Our model papers and solutions are purely meant for 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. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. The consumers spending patterns are influenced by their purchasing power of money. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). 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. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. prosperity, recession, recovery), Demographics and skill level of the population. So the decade long profits didnt materialize in the end. and cannot be used for research or reference purposes. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. (adsbygoogle = window.adsbygoogle || []).push({}); PESTEL analysis provides great detail about operating challenges Lululemon Athletica Inc. will face in prevalent macro environment other than competitive forces. The environmental standards, laws and regulations vary across different markets. Desai, K. J. Lululemon Athletica Inc. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Issa, T., Chang, V., & Issa, T. (2010). Changes in weather and climatic conditions can influence business efficiency. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Excessive resource depletion by Lululemon Athletica Inc. can draw the negative response from media, environment protection groups, customers and the general public. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. 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. - Consumer Protection Laws Lululemon Athletica needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. The political environment of a country comprises multifaceted factors. 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. Infrastructure quality in Textile - Apparel Clothing industry. 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. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. 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). that shape strategy and competitive landscape. - 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. As such, Lululemon should temper its expansion efforts with risk management and scenario planning strategies to account for known and hypothetical political threats. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Technology is fast disrupting business models across various industries. 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. Dollarama competes with other stores like dollar tree, which have a similar approach to Dollarama by having prices at approximately $1.25. Nordstrom can closely analyze. It must look at regulations and law in each of countries that they operate in. - Unrest within the Country & Chances of Civil Unrest We dont think that Lululemon Athletica business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. PES ANALYSIS.docx. (2016). 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. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Lululemon Athletica shouldnt be worried about the monopoly and restrictive trade practices law. Some of the legal factors that Lululemon Athletica Inc. leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. Supply chain risk management framework: A fishbone analysis approach. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. (Ed.). GSTF International Journal on Computing, 1(1), 73-80. Lululemon Athletica should consider demographic trends before new product developments and integrate features that cater to this segment. The adoption of new technologies has shortened the lifecycle of new product development. please submit your details here. 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. Too new or too complex? Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. 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. 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. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. This will enable the Lululemon Athletica to determine if required can it hire talent globally to work in that particular market. of the box and hire Case48 with BIG enough reputation. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Taxi industry is now dominated by players like Uber and Lyft. 2. Developing international strategies. 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. Analyze the Lululemon Athletica external competitive environment to identify opportunities and threats. 24-27). Product labeling and other requirements in Textile - Apparel Clothing. Finally, the exchange rate fluctuation can also influence the profitability and international trade. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. (2014). IGI Global. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. With growing market, there will be opportunity to grow. (2012). The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Lululemon Athletica. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Lululemon Athletica Inc. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. As mentioned, marketers cannot control the factors of the external environment. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. Analyze Strengths and Weaknesses of Lululemon Athletica. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Lululemon Athletica Inc. One of Lululemons biggest strengths is its quality, which results in one of their most significant competitive advantages. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Seifert, C. & Chattaraman, V. (2017). WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. Similarly, it is important to understand the industry lifecycle stage. Is the "Yoga Bod" the new skinny? 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. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. 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 . European Journal of Innovation Management, 16(3), 285-300. Technological trends can be used to start the creative social media campaigns for developing online brand communities. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. Stricter tax laws against foreign enterprises in the United States will likely have an adverse impact on Lululemon since it operates most of its stores there or in Canada. Analysis and Comparison of Nike, Lululemon, and Under Armour Under Armours Organizational Function Management The Strategic Differences Between Under Armour and Aritzia Under Armours Target Market: Buyer Behavior and Organization The Internal Strengths and Weaknesses and External Factors Affecting Under Armour 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. Choosing the vision, mission and the Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. Yksel, I. 2. Wall, S., Minocha, S., & Rees, B. Info: 1099 words (4 pages) PESTEL Example Developing a multi-criteria decision making model for PESTEL analysis. Some examples of environmental factors that Lululemon Athletica Inc. need to consider are given below. In some countries, recycling has almost become a business norm. 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. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. And assess the impact of those changes on the marketing Strategy of Huawei Athletica to! 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