4. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Thank you for your email subscription. - Waste Management What is the policy of waste management in the prospective market and how Lululemon Athletica can adhere to the waste management requirements in that market. As such the impact of the external business environment factors on Huaweis marketing strategy are explained by the PESTEL Model as follows: PESTLE analysis Pearson Education. Daidj, N. WebLululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Help, Academic 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. Copyright 2023 IPL.org All rights reserved. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. Lululemon Atheltica. Common materials used in apparel making such as rubber and cotton are readily available. 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). A., & Gomez, o. - 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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. 5. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. While micro environment factors such as competition norms impact the competitive advantage of the firm. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Financial Times Prentice Hall. Choosing the vision, mission and the DCLL International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. 3. In certain countries where Lululemon operates, political corruption could become a problem since there are fewer opportunities for recourse in the regions. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. 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. Abercrombie & Fitch is an American fashion retailing company headed by president and CEO Michael Jeffries. 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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A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. The political environment of a country comprises multifaceted factors. High unemployment signals the availability of surplus labor at comparatively lower wages. Due to limited information from countries' perspective (language barriers), this paper will analyze the European union clothing industry as a whole, in term of the development, the competitiveness and the disparity between top and bottom players in regards to financial performance. 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. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. Your Name: _ BUS470 Instructor: Parvathi Jayamohan External Analysis Worksheet: Part 1 (based on Chapter Nike PESTLE Analysis. The environmental standards, laws and regulations vary across different markets. With the running of those four brands, the company is collectively targeting consumers of 7 through 35. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Lululemon Athletica should be aware of presence of such practices in a country. 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. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. Industrial safety regulations in the Consumer Goods sector. Some countries offer subsidies for encouraging investment in renewable technologies. If data breaches occur and experts determine Lululemon violated confidentiality or privacy laws through flaws in its information security protocols, it could face serious litigation and financial penalties. The consumers of Lululemons products are endowed with high bargaining power because the switching costs are relatively low. 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. Similarly, it is important to understand the industry lifecycle stage. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. With that being taken away, they will be put - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. The demand and supply of labor determine the wage rates and supply of skilled workforce. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Lululemon Athletica Inc. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. This will help in better predicting the environment policy of the country. During the 1960 to 1970 the tennis shoes started to move from games footwear to easygoing footwear and turned into an image for the cheap and grime cultures. Louis Vuitton is known globally and has a strong image in Singapore, China, Hong Kong and Japan which are leading financial hubs and individuals with high net worth. The achieve success in such a dynamic apparel stores industry across various countries is to diversify the systematic risks of political environment. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lululemon Athletica. 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. 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. 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. All rights reserved. Solution, Assignment Writing Comparative advantages of host country and Consumer Goods sector in the particular country. 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 report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Such an attack could take Lululemon's digital marketplace offline temporarily or cause permanent damage to its information assets (Lululemon, 2017). Efficiency of financial markets Does Lululemon Athletica Inc. needs to raise capital in local market? Attitudes (health, environmental consciousness, etc. SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. Free resources to assist you with your university studies! Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Lululemon Athletica Inc. case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. on WhatsApp for any queries. Proposal, Assignment Writing WebLululemon depends on third-parties for the manufacturing and supply needs of its athletic apparel. - 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. The American clothing company is based in Los Angeles, California, United States. Service, Dissertation PESTEL analysis is mainly the assessment of macro environment factors. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Lowers prices for faithful customers. Even within a country often states can have different environmental laws and liability laws. Lululemon Athletica Inc. 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