It must look at regulations and law in each of countries that they operate in. If the legal system is not strong then Lululemon Athletica can face numerous challenges from consumer petitions to shakedowns from authorities. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. Explain. Do an analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using supplier's power from Porter's Five Forces. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. Too new or too complex? Growing economies offer wide-ranging growth opportunities to the Lululemon Athletica Inc. With rapid numbers of factories means more competition. Technology is fast disrupting business models across various industries. 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. Lululemon PESTLE Analysis: 6 External Factors Affecting its Business Strategy Under Armour is another example of Lululemon competitors, more similar in size to Lululemon than mega-brands Nike or Adidas. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. David T. Abercrombie founded the company in 1892, A&T managers promoted it as: The Finest Sporting Goods Store in the world. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. The environmental standards, laws and regulations vary across different markets. Check your email WebThe PESTEL analysis is one of the management assessment methods from various points of view of political , economic , social , technological , environmental , and legal . Labor costs and productivity in the economy, Business cycle stage (e.g. Copyright, patents / Intellectual property law. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Lululemon Athletica Inc. due to jeopardized public trust on business organizations and overall political and economic structure. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. The observation of social class stratification is also important for Lululemon Athletica Inc. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Lululemon Athletica Inc. to adopt the niche marketing strategies. - 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. Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). But the business was later expropriated by the Left Wing government. 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). Hou, J., Lu, Q., & Han, Y. 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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Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Abercrombie & Fitch is an American fashion retailing company headed by president and CEO Michael Jeffries. *You can also browse our support articles here >. 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. 1. Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. ), 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. Attitudes (health, environmental consciousness, etc. Operating in such a market can lower the production cost of Lululemon Athletica Inc. Lowers prices for faithful customers. 5. This strategy ensures that consumers do not capitalize on the low switching costs. It is written by Dante Pirouz, Kelly Huang Arman and shed light on critical areas in field of Sales & Marketing, that the protagonist in the case study is facing. Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. 4. Lululemon Athletica Inc. can use countrys economic factor such as growth rate, inflation & industrys economic indicators such as Textile - Apparel Clothing industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis. 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. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. At EMBA PRO, Nordstrom can closely analyze. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 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. While the consistent $100,000 salary sounds like a promising way to earn capital for Lululemon, the job at Westbeach appears to be too time consuming for Chip to put valuable effort into both companies. European Journal of Innovation Management, 16(3), 285-300. It must look at regulations and law in each of countries that they operate in. WebPESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it The Essay Writing ExpertsUS Essay Experts. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 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. Proposal, Question Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. - 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. Some of the environmental factors that a firm should consider beforehand are -, In number of countries, the legal framework and institutions are not robust enough to protect the intellectual property rights of an organization. Sustainable business strategies and PESTEL framework. Service, Dissertation to get Coupon Code. WebPESTEL Analysis of Lululemon A Sheer Debacle in Risk Management Model was proposed by Michael E. Porter in 1979. - 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. - 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. 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. Strategy planning process often requires five steps Providing a secure work environment for the workforce is the ethical and moral obligation of Lululemon Athletica Inc. Out of which, the net income of the sportswear With growing market, there will be opportunity to grow. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. Finally, the exchange rate fluctuation can also influence the profitability and international trade. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Developing international strategies. The company found itself facing its worst quality control problem to date, with a recall of 17 per cent of its Luon pants due to issues with sheerness. - Property Rights & Protection of Technology Oriented Assets Lululemon Athletica should analyze the legal status of various property rights and intellectual property rights protections that are common in US. Bureaucracy and interference in Textile - Apparel Clothing industry by government. What is PESTEL Analysis & its significance for Lululemon. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. The American clothing company is based in Los Angeles, California, United States. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. : A comparative content analysis of mainstream yoga lifestyle magazine covers. There is a growing trend towards the use of green/eco-friendly products. The political environment of a country comprises multifaceted factors. 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. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Lululemon Athletica Inc. Likewise, Lululemon stores in countries with worsening economic conditions may have to close if doing business there becomes unprofitable or too risky. It is an The use of foreign labour and manufacturing resources among multinational enterprises can become complicated, where firms that violate principles of corporate social responsibility experience backlash from consumers often (Nam et al., 2017). 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