Feel free to connect with us if you need business research. 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. - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. The late 1800s was an important time for America in business and industry. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. 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). 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. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. The consumers spending patterns are influenced by their purchasing power of money. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. 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). 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. 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. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. GSTF International Journal on Computing, 1(1), 73-80. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. 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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It is not only well known but has a rich history. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. 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. Lululemon Athletica should be aware of presence of such practices in a country. But the business was later expropriated by the Left Wing government. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. - Technology transfer and licensing issues for Lululemon Athletica laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Lululemon Athletica can avoid shakedowns and IPR thefts. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. A firm should carefully evaluate before entering such markets as it can lead to theft of organizations secret sauce thus the overall competitive edge. Pearson Education. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. As mentioned, the snowboarding industry is becoming increasingly competitive and requires constant innovation and management to retain market share. Lowers prices for faithful customers. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages. Key Takeaways The Lululemon SWOT analysis shows that the company needs to improve its business and survive in the current sports apparel market. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. Provide a rationale for why, analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using Porter's Five Forces. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Published: 2nd Nov 2020. Lululemon Athletica Inc. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging. All rights reserved. Company need to have patent in all countries that they operate to ensure their unique value. 4. Info: 1099 words (4 pages) PESTEL Example WebView Lululemon External Analysis Worksheet Part 1.doc from MGT 472 at Salem State University. Use research as, 1. If you need help with something similar, 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. 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. submission, reproduction, or any other misuse in any manner. It is sensitive to business law regulation in different countries, and they tax regulation. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Looking for a flexible role? 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? We are here to help. Comparative advantages of host country and Consumer Goods sector in the particular country. Another threat to Lululemon is increased foreign costs. As Lululemon heavily relies on foreign manufacturers to make their products at a lower price, they have a greater risk of losing those high margins if foreign costs rise. 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. Product labeling and other requirements in Textile - Apparel Clothing. Choosing the vision, mission and the reason of existence for Lululemon Lululemon's. Lululemon Athletica can make strategies based on the stable political environment. Porter Five Forces 2. (2009). Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. - Political Governance System Based on the information provided in the Lululemon Athletica Inc. case study, it seems that the country have a stable political system. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. inspiration, guidance, and understanding. 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. Since 1960, the company encountered continued financial losses until The Limited purchased it in 1988, when Michael Jeffries became president and chief executive of A&T launching the trademark slogan casual luxury, new style of Abercrombie. 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. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. Webb, J. 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. 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. 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. Factors influencing consumers' purchase intention of green sportswear. 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. For example in United States Texas and Florida have different liability clauses in case of mishaps or environmental disaster. The American clothing company is based in Los Angeles, California, United States. Buy Professional PPT templates to impress your boss. (2008, December). It is an Anti-trust law in Textile - Apparel Clothing industry and overall in the country. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages Government policies supporting active and healthy lifestyle can have effect on Lululemon. The achieve success in such a dynamic Textile - Apparel Clothing industry across various countries is to diversify the systematic risks of political environment. Strategy planning process often requires five steps Changes in weather and climatic conditions can influence business efficiency. Revista ESPACIOS, 39(16). Free resources to assist you with your university studies! Alternatively, Lululemon's business activities abroad are also subject to the rule-making of local political leaders (Bertels, Koen, & Elsum, 2015). Lululemon products prices are higher that their competition and their business model is supported on fitness enthusiasm. This article is only an example (2015). This was due to a desire to work with leading fabric suppliers and increased investments. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. With rapid numbers of factories means more competition. In certain countries where Lululemon operates, political corruption could become a problem since there are fewer opportunities for recourse in the regions. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Lululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Thank you for your email subscription. The environmental standards, laws and regulations vary across different markets. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. As Lululemon Athletica Inc. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. Lululemon Atheltica. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lululemon Athletica Inc.. (2016). - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. WebLululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. - 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. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. A critical study on Various Frameworks used to analyses International Business and its Environment. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. 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