Level of corruption - especially levels of regulation in Consumer Goods sector. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. All the regulations about design patent need to be monitored by company. IGI Global. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Case Analysis - Lululemon Athletica, Inc. 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Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Businesses tried to come together, but it didnt always work. But the business was later expropriated by the Left Wing government. It must look at regulations and law in each of countries that they operate in. Exploring strategy. 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 careful evaluation of legal aspects is required to avoid getting into some serious trouble. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. WebThe Pestle Analysis Of Lululemon 966 Words | 4 Pages. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Nobody get fired for buying our Business Reports Templates. Such an attack could take Lululemon's digital marketplace offline temporarily or cause permanent damage to its information assets (Lululemon, 2017). - 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. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Lululemon Athletica Inc. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. Sustainable business strategies and PESTEL framework. Lululemon Athletica Inc. should carefully consider the on-going technological innovations to stay ahead of the competition. 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? Like all businesses they are sensitive to economic situation on global and local markets. For quite a few multinational corporations, these issues are controllable, although this is not the case for Lululemon since it is far-removed from its suppliers and has few supplier alternatives. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Some countries offer subsidies for encouraging investment in renewable technologies. In highly hierarchical societies the power of decision making often reside at the top. (2018). USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. We're here to answer any questions you have about our services. It is sensitive to business law regulation in different countries, and they tax regulation. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to. Why consumers' aesthetic sensitivity matters in apparel design evaluation. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 4. So the decade long profits didnt materialize in the end. Vallester, C., Lindgreen, A., & Maon, F. (2012). on WhatsApp for any queries. and cannot be used for research or reference purposes. Is the "Yoga Bod" the new skinny? ), 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. Choosing the vision, mission and the 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. The Anti-trust law in Textile - Apparel Clothing industry and overall in the country. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. Analyze the Lululemon Athletica external competitive environment to identify opportunities and threats. Research and development activities are highly important in an environment characterized by creative disruption. - 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. 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. We make the greatest data maps. - Birth Rate Birth rate is also a good indicator of future demand. Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). Political environment and other factors not only impact the cost of doing business but also long term sustainability. Use research as, 1. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. This gives Lululemon a lot of choice in picking who they want to buy supplies from. Too new or too complex? Alternatively, Lululemon's business activities abroad are also subject to the rule-making of local political leaders (Bertels, Koen, & Elsum, 2015). In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are By association, should these companies engage in unethical business practices The bond rating of national government is investment grade. Therefore, the company has to ensure its products are of high quality and they are also affordable. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. At EMBA PRO, International business. Wall, S., Minocha, S., & Rees, B. Rate the supplier power forces (High, Medium, or Low). Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. Some of the economic factors that Lululemon Athletica 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. Lululemon Athletica should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. As population is ageing it will require less tech intensive products. According to Michael Porter organizational performance is to large extend determined by various industry forces. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Lululemon Athletica Inc. if it is situated in unstable political environment. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. 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. Soon, trusts became a new form limiting competition. 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). Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Help, Academic They can impact individual firms competitive advantage or overall profitability levels of the Consumer Goods industry. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. 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 Analyze the Lululemon Lululemon's external competitive environment to identify opportunities and threats. Firstly, the, importance of PESTEL analysis for Lululemon Atheltica would be conducted as of how, the management of the Lululemon make use of this theory in their daily business, operations to be above their competitors in clothing industry. It can lead to uncertainty and suppression of consumption in both short term and long term. 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. Some examples of environmental factors that Lululemon Athletica Inc. need to consider are given below. Lululemon operates at wide range of market. Posted by Zander Henry on The American clothing company is based in Los Angeles, California, United States. Dante Pirouz, Kelly Huang Arman (2018), "Lululemon Athletica Inc. Harvard Business Review Case Study. By association, should these companies engage in unethical business practices or skimp on quality guidelines, these acts will reflect poorly on the Lululemon brand (Vallester, Lindgreen, & Maon, 2012). 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