What is PESTEL Analysis & its significance for Lululemon. Finally, the exchange rate fluctuation can also influence the profitability and international trade. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Culture is considered an important variable by international marketing managers. - 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. Bertels, H. M., Koen, P. A, & Elsum, I. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. Seifert, C. & Chattaraman, V. (2017). - 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. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. please submit your details here. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. submission, reproduction, or any other misuse in any manner. Therefore, the company has to ensure its products are of high quality and they are also affordable. Particularly put extensive brand portfolio to cover different customer segments. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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. - 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. Technological trends can be used to start the creative social media campaigns for developing online brand communities. MarketLine. Tax level set for businesses by government have direct effect for how profitable the Lululemon company is. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. Lululemon Athletica Inc. can leverage the opportunities offered by social media marketing to improve business performance. 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. 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. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Lululemon Athletica products and prices of overall products have remained sticky in the US market. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. Check your email Anti-trust law in Textile - Apparel Clothing industry and overall in the country. B., Vinoski, E. R., Warren-Findlow, J., Padro, M. P., Burris, E. N., & Suddreth, E. M. (2017). Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. (2015). There are many suppliers competing for retailers business. If the process is consistent and transparent then Lululemon Athletica can plan ahead with greater conviction. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. - Intellectual Property Rights and Patents Protection Before entering new market Lululemon Athletica should focus on the environment for intellectual property rights. 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. Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Also, to accurately analyze the performance of the company, we need to compare its performance. 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. Organizational culture derives strong influence from the societal norms, values and trends. (2018). Free resources to assist you with your university studies! - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. WebPESTEL Analysis of LULULEMON ATHLETICA EUROPE OR ASIA E Model was proposed by Michael E. Porter in 1979. 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.. All work is written to order. so converse have to change their policy to stable in the current market. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. Customer Loyalty Program Create a customer loyalty points systems for purchases. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. But the business was later expropriated by the Left Wing government. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Help, Academic Economic Further, the same PESTEL factors would also be, included in evaluating future prospects and risk that company might face in the future and. Technology' is the fourth factor of PESTEL analysis. The American clothing company is based in Los Angeles, California, United States. Common materials used in apparel making such as rubber and cotton are readily available. 1. Skill level of workforce in Textile - Apparel Clothing industry. Exchange rates & stability of host country currency. Furthermore, A&F currently operates four other brands, which are: A&F, Abercrombie Kids, Hollister Company, and RUEHL. This critique is a reflection of Strategic Industry Analysis of clothing Industry in United Kingdom, Italy and France. The application of PESTEL analysis can help Lululemon Athletica Inc. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. Lululemon Athletica should be aware of presence of such practices in a country. Strategically leveraging corporate social responsibility: A corporate branding perspective. Our model papers and solutions are purely meant for One of Lululemons biggest strengths is its quality, which results in one of their most significant competitive advantages. Analysis and Comparison of Nike, Lululemon, and Under Armour Under Armours Organizational Function Management The Strategic Differences Between Under Armour and Aritzia Under Armours Target Market: Buyer Behavior and Organization The Internal Strengths and Weaknesses and External Factors Affecting Under Armour A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. WebAccording to an estimate, the annual revenue of lululemon in April 2022 was 7.468 billion dollars, and it has increased by 27.5%. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. PESTLE analysis Political Lululemon operates at wide range of market. It must look at regulations and law in each of countries that they operate in. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. All rights reserved. Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. Lululemon Athletica Inc. can closely analyze the following factors before entering or investing in a certain market-. Pestel Analysis And Pest Analysis: American Apparel 2014 Words | 9 Pages. Businesses tried to come together, but it didnt always work. - Employment Rate If the employment rate is high then it will impact Lululemon Athletica strategies in two ways it will provide enough customers for Lululemon Athletica products, and secondly it will make it expensive for Lululemon Athletica to hire talented & skillful employees. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. 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