Nordstrom is operating in apparel stores in more than dozen countries and exposes itself to different types of political environment and political system risks. This can help Lululemon Athletica to bring in more transparency and make supply chain more flexible. 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. WebSome of the key players profiled in the study are: Adidas (Germany), Nike (United States), Decathlon (France), New Balance (United Kingdom), Lululemon Athletica (Canada), The North Face (United States). - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. 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). Rate the supplier power forces (High, Medium, or Low). We make the greatest data maps. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Likewise, Lululemon stores in countries with worsening economic conditions may have to close if doing business there becomes unprofitable or too risky. Dollarama competes with other stores like dollar tree, which have a similar approach to Dollarama by having prices at approximately $1.25. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. - Nature of Social Contract between Government & Society Before entering into a market Lululemon Athletica needs to understand the nature of social contract between government and society. This article is only an example 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. Research and development activities are highly important in an environment characterized by creative disruption. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. (Ed.). Out of which, the net income of the sportswear Pearson Education. Hou, J., Lu, Q., & Han, Y. Bertels, H. M., Koen, P. A, & Elsum, I. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). Exchange rates & stability of host country currency. Send your data or let us do the research. Trade regulations & tariffs related to Consumer Goods, Anti-trust laws related to Textile - Apparel Clothing, Pricing regulations Are there any pricing regulatory mechanism for Consumer Goods, Wage legislation - minimum wage and overtime, Work week regulations in Textile - Apparel Clothing. Sustainable business strategies and PESTEL framework. WebPESTEL Analysis of Lululemon Athletica s Product Employee and Public Relations Issues Model was proposed by Michael E. Porter in 1979. 5. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Natural disasters in South East Asia and South Asia especially a concern because 82% of the Lululemon products come from manufacturing in these regions (Lululemon, 2017). Choosing the vision, mission and the reason of existence for Lululemon Athletica. 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. 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. Yksel, I. Lululemon Athletica should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. Was Lululemon destined to follow Blackberry as another example of a failed Canadian company, or could it resurrect its former glory by facing its critics head on? The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. The health and efficiency of financial markets will determine Lululemon Athletica Inc.s ability to raise the capital at fair prices. It must look at regulations and law in each of countries that they operate in. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. 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. inspiration, guidance, and understanding. Service, Dissertation What is PESTEL Analysis & its significance for Lululemon. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. 4. Financial Times Prentice Hall. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. 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. Transportation industry is a good case to illustrate this point. The business and marketing strategies are also influenced by migration. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. With rapid numbers of factories means more competition. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. 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. ), Recent technological developments by Lululemon Athletica Inc. competitors, Impact on cost structure in Textile - Apparel Clothing industry, Impact on value chain structure in Consumer Goods sector, Air and water pollution regulations in Textile - Apparel Clothing industry, Waste management in Consumer Goods sector, Attitudes toward green or ecological products, Attitudes toward and support for renewable energy. In addition, the company's chief executive officer had stepped down. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. Revista ESPACIOS, 39(16). The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. David T. Abercrombie founded the company in 1892, A&T managers promoted it as: The Finest Sporting Goods Store in the world. The companys logo and monogram being seen on their products is something which is easily recognized by every customer. - Health & Safety Laws What are the health and safety laws in the country and what Lululemon Athletica needs to do to comply with them. A majority of their apparel production was in Asia however they are willing to use Canada as well as the United States for production facilities as they are required. 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. The marketing department of Lululemon Athletica Inc. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. The brands set different prices of its product base on design, size and heritage. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. With the running of those four brands, the company is collectively targeting consumers of 7 through 35. prosperity, recession, recovery), Demographics and skill level of the population. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. Industrial safety regulations in the Consumer Goods sector. To achieve such aims, data were collected, reviewed and analyzed within the industry. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. 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. Type of economic system in countries of operation what type of economic system there is and how stable it is. Natural disasters in South East Asia and South Asia especially a concern because 82% Choosing the vision, mission and the Investors, managers, creditors and others need to analyze various aspects of financial statements so they can invest, manage and do business more effectively with the particular company. So Dollarama struggles to find a balance between competitive prices and profitable prices. Explain. It is an Comparative advantages of host country and Consumer Goods sector in the particular country. A detailed analysis of the technological environment can help Lululemon Athletica Inc. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Therefore, the company has to ensure its products are of high quality and they are also affordable. For example Trump not standing by US commitments created an environment of uncertainty. We're here to answer any questions you have about our services. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Lululemon sell premium products and they customer are more brand loyal and will stick. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Some of the economic factors that Lululemon Lululemon's 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. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. 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. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. 2. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. 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. 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. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. (2018). Alternatively, Lululemon's business activities abroad are also subject to the rule-making of local political leaders (Bertels, Koen, & Elsum, 2015). In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. At EMBA PRO, - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. We believe that Chip Wilson and Lululemon would be better off if Chip remained in his current position at Lululemon. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Lululemon operates at wide range of market. Exploring strategy. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. In this situation, the suppliers have a low level of bargaining power. Some countries offer subsidies for encouraging investment in renewable technologies. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. 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. MarketLine. Integrity, Essay Writing There are many suppliers competing for retailers business. 1, pp. It requires Lululemon Athletica Inc. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. IGI Global. Warning! The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Lowers prices for faithful customers. - Corporate Social Responsibilities Culture Are Lululemon Athletica present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. 3. Lululemon Athletica Inc. can closely analyze the following factors before entering or investing in a certain market-. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. The adoption of new technologies has shortened the lifecycle of new product development. - 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. 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. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Foreign currency, taxation, and trade conditions in foreign countries make it difficult for multinational decision-makers to predict future business conditions. As such the impact of the external business environment factors on Huaweis marketing strategy are explained by the PESTEL Model as follows: PESTLE analysis to get Coupon Code. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. Lululemon Athletica should be aware of presence of such practices in a country. 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