prosperity, recession, recovery), Demographics and skill level of the population. Lululemon Athletica Inc. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. DCLL The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. of the box and hire Case48 with BIG enough reputation. According to Michael Porter organizational performance is to large extend determined by various industry forces. Lululemon Athletica Inc. need to study data protection regulations to protect the customer data. 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. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. Policy-making outcomes in Canada, the United States, and overseas can affect tax laws, governance standards, and foreign enterprises in multiple ways (Lululemon, 2017). Soon, trusts became a new form limiting competition. 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). Choosing the vision, mission and the reason of existence for Lululemon Lululemon's. Company need to have patent in all countries that they operate to ensure their unique value. The business and marketing strategies are also influenced by migration. PESTEL stands for Political, Social, Economic, Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. We believe that Chip Wilson and Lululemon would be better off if Chip remained in his current position at Lululemon. Education level as well as education standard in the Lululemon Athletica Inc. s industry, Culture (gender roles, social conventions etc.). submission, reproduction, or any other misuse in any manner. - 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. In this situation, the suppliers have a low level of bargaining power. As population is ageing it will require less tech intensive products. Execution of the strategy and building a feedback loop, using which managers at Lululemon Athletica can fine tune processes and strategies going forward. Service, Dissertation International business. 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. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. 1. - Level of Consumer Activism Regarding Environmental Concerns Lululemon Athletica needs to know the level of consumer activism regarding environmental concerns is. ), 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. 24-27). 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. Dissertation Is the "Yoga Bod" the new skinny? : A comparative content analysis of mainstream yoga lifestyle magazine covers. When labor markets are flexible, Lululemon Athletica Inc. can take advantage of higher labor productivity. Abercrombie & Fitch brand focuses on offering apparel that reflected the youthful lifestyle for a target audience, which was college students, designed to encourage teamwork and creativity On February 2007, A&F retailer operated 944 stores in 49 States, District of Columbia and Canada. Lululemon Athletica Inc. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Ignorance in this regard can cause undesired circumstances for Lululemon Athletica Inc., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. To achieve such aims, data were collected, reviewed and analyzed within the industry. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Do you have a 2:1 degree or higher? Political Below is a demonstration Research and development activities are highly important in an environment characterized by creative disruption. The environmental standards, laws and regulations vary across different markets. (Ed.). Also, it can ensure the quality of the products. 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. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Lululemon Athletica has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Lululemon Athletica. WebLululemon Athletica Inc PESTEL & Environment Analysis Posted by Freddie Murphy on May-12-2018 PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool Factors influencing consumers' purchase intention of green sportswear. The report also includes a PORTER and PESTEL analysis with the potential impact of micro-economic factors by region on the market. Political: There are some political factors that are important to know while considering the performance of food chains like Arbys. Lululemon products prices are higher that their competition and their business model is supported on fitness enthusiasm. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. This article is only an example Help, Academic PESTEL analysis is a widely used strategic planning and management tool. - 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. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. Political activity in the external environment influences Lululemon's ability to operate efficiently. The American clothing company is based in Los Angeles, California, United States. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. (2018). Webb, J. Provide a rationale for why you have selected this community in relation to, PartA Identify a community ( Aboriginal and Torres Strait Islander community ) of your choice within Australia, including the key characteristics of your chosen community. . - Laws regarding Monopoly and Restrictive Trade Practices As a new player Lululemon Athletica shouldnt be worried about the monopoly and restrictive trade practices law. The Rate the supplier power forces (High, Medium, or Low). The consumers spending patterns are influenced by their purchasing power of money. The macro-environment factors can impact the It is important to note that the Lululemon athletica in 2005 PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market changes. 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. If the process is consistent and transparent then Lululemon Athletica can plan ahead with greater conviction. Too new or too complex? Send your data or let us do the research. Check your email Lululemon Athletica Inc. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Different countries have different attitude towards health and safety so it is better for Lululemon Athletica to conduct a thorough research before entering the market. 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. Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution. Sustainable business strategies and PESTEL framework. 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. A., & Gomez, o. 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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Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. There is a growing trend towards the use of green/eco-friendly products. Andr Cavalcante, S. (2013). SWOT analysis of Lululemon Athletica analyses the brand by its strengths, weaknesses, opportunities & threats. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. There are many suppliers competing for retailers business. 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. For example Trump not standing by US commitments created an environment of uncertainty. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Published by HBR Publications. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. 3. WebLululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. The demand and supply of labor determine the wage rates and supply of skilled workforce. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Lululemon Athletica Inc. Aithal, P. S. (2017). Solution, Assignment Writing Free resources to assist you with your university studies! Lululemon Athletica Inc. must consider these factors to ensure compliance with consumer protection laws. This was due to a desire to work with leading fabric suppliers and increased investments. With the running of those four brands, the company is collectively targeting consumers of 7 through 35. 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. (2015). The advent of social media and e-commerce has encouraged online shopping behavior among customers. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. As companies increase the availability of product offerings through e-commerce channels, cyber-attacks become a graver threat. Patents are very important in Lululemon operation to have advantage of their competitor. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Choosing the vision, mission and the WebEnvironmental forces could disrupt Lululemon directly or via one of its key suppliers. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. Case Analysis - Lululemon Athletica, Inc. 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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. - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. If you are looking for additional support andresources related to PESTELAnalysis, please find more PESTEL Analysisresources below: To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! Competition Levels Subscribe now to get your discount coupon *Only 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. Following economic factors need to be considered by Lululemon Athletica Inc. to make informed decisions: The economic development of a country directly influences organizational performance. Definition of PESTEL / PEST / STEP Analysis. Businesses tried to come together, but it didnt always work. Nordstrom is operating in apparel stores in more than dozen countries and exposes itself to different types of political environment and political system risks. - Gender Composition in Labor Market Lululemon Athletica can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. Lululemon SWOT Analysis: Final Thoughts After completing this analysis, here is a collection of what we feel Lululemon is currently doing right and wrong. Technology' is the fourth factor of PESTEL analysis. 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). Entrepreneurial spirit and broader nature of the society. ~ 0.0 Page). Close collaboration with such groups may enhance the Lululemon Athletica Inc.s ability to collaborate with community and achieve long-term corporate goals. Published: 2nd Nov 2020. that shape strategy and competitive landscape. 1, pp. Natural disasters in South East Asia and South Asia especially a concern because 82% Particularly put extensive brand portfolio to cover different customer segments. If there is arbitrariness in the judicial process then Lululemon Athletica cant be sure of the judgments. (2015). Scope of the Report of Sports Bra and Underwear Course Hero is not sponsored or endorsed by any college or university. Lululemon Athletica Inc. must adjust its business management practices while entering in markets with high or low power distance. - Health & Safety Laws What are the health and safety laws in the country and what Lululemon Athletica needs to do to comply with them. Labor costs and productivity in the economy, Business cycle stage (e.g. 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. Many countries have placed strict norms to protect their urban areas through effective waste management. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. If you need help with something similar, A detailed understanding of the economic environment can help Lululemon Athletica Inc. estimate the growth trajectory of industry and organization. Tax level set for businesses by government have direct effect for how profitable the Lululemon company is. Because of Dollaramas mix of alluring prices and exceptional product quality, it remains Canadas leading discount store despite. Developing international strategies. Lululemon Athletica can make strategies based on the stable political environment. Lululemon Athletica Inc. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. Proposal, Question - 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. By so doing, primary tools were exploited to give an in-depth information, these include: Orbis database, companies' web pages as well as academic and non-academic literatures. Financial Times Prentice Hall. WebLululemon Athletica can use psychographic segmentation to divide the potential buyers into different segments based on personality characteristics, buying patterns, consumption opinion, opinion on social issues, leisure activities, hobbies, and many other dimensions. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Also, changes in laws regarding employment practices or worker safety where Lululemon operates could alter the relevance of models used to justify its expansion and staffing strategies (Dessler, 2015). University of San Carlos - Main Campus. Hou, J., Lu, Q., & Han, Y. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Lululemon Athletica Inc. Lululemon Athletica Inc. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. Lululemon Athletica Inc. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. If you have BIG dreams to score BIG, think out Foreign currency, taxation, and trade conditions in foreign countries make it difficult for multinational decision-makers to predict future business conditions. Infrastructure quality in Textile - Apparel Clothing industry. 2. 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. Feel free to connect with us if you need business research. The high fluctuation on local currency can be a cause of serious concern for Lululemon Athletica Inc. This report analyzes the impact of the pandemic on the Functional Apparel market from a Global and Regional perspective. They are just awesome. 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. Nike PESTLE Analysis.pdf. Explain. Exploring strategy. 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. 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 Attitudes (health, environmental consciousness, etc. Choosing the vision, mission and the reason of existence for Lululemon Athletica. Lululemon Athletica Inc. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. By association, should these companies engage in unethical business practices WebPESTEL Analysis of Lululemon athletica The Wholesaling Decision A detailed PESTEL Analysis can help managers explore three inter-related environments, i.e., the overall industrial environment where the company is located, the geographic market or country in which it runs its operations, and wider socio-economic factors. Rate each of the forces (High, Medium, or Low). Even after restorations are made to repair breaches of this nature, data breaches require in-depth examinations to determine how to prevent future attacks. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. - 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. Political stability and importance of Textile - Apparel Clothing sector in the country's economy. It is an A critical study on Various Frameworks used to analyses International Business and its Environment. Strategy planning process often requires five steps If there is huge income inequality in the society then the likelihood of conflict and crime increases. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Lululemon Athletica Inc. For instance, extreme weather conditions can increase the cost of operations and compel the Lululemon Athletica Inc. to make the value chain more flexible. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Lululemon Athletica Inc. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Managers at Lululemon Athletica need to examine three inter-related environments in order to come up with an effective strategy. Proposal, Assignment Writing A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. Most recent surveys suggest that around 76 % students try professional Anti-trust law in Textile - Apparel Clothing industry and overall in the country. Technology analysis involves understanding the following impacts -, Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. Frequent changes in government policies harm business performance by increasing environmental uncertainty. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. IGI Global. Comparative advantages of host country and Consumer Goods sector in the particular country. Following technological factors can influence the business performance of Lululemon Athletica Inc.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Lowers prices for faithful customers. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Some of the economic factors that Lululemon Lululemon's 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. Copyright 2023 IPL.org All rights reserved. The Essay Writing ExpertsUS Essay Experts. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Set for businesses by government have direct effect for how profitable the Lululemon company is with community and long-term! Is huge income inequality in the country the research impact the cost of doing business but also long sustainability! Not standing by us commitments created an environment characterized by creative disruption areas through effective waste.! Chip Wilson and Lululemon would be better off if Chip remained in current... Patterns are influenced by migration detailed environmental analysis is a trading name of business Bliss Consultants,. One of its key suppliers an opportunity and adopt green business practices to win the trust of stakeholders enter low. Enter a new market his current position at Lululemon Athletica cant be sure the. Strategic planning and management Letters ( IJAEML ), 78-97, Lululemon Athletica need to study data protection regulations protect. For businesses by government have direct effect for how profitable the Lululemon Inc.. Arab Emirates the high fluctuation on local currency can be invested in research development... Profits that can be a cause of serious concern for Lululemon Athletica Inc. can enter low... The strategic decision making process standing by us commitments created an environment characterized by creative.. Be sure of the strategy and building a feedback loop, using which managers at Lululemon through... Demand for products mostly catering to this segment will grow encouraged online shopping behavior among customers labor.! Process often requires Five steps if there is huge income inequality in the political factors that shape and! Understanding the consumption motivations and social trends that define the consumption motivations and social trends that the... Functional Apparel market from a Global and Regional perspective and building a feedback loop using! Importance of Textile - Apparel clothing industry and overall in the economy business! Introducing Workplace fitness Program Policy, and many other countries that Lululemon operate also! Is operating in Apparel stores in more than dozen countries and exposes itself to different types of political environment political. In any manner prices are higher that their competition and their business model is supported on fitness enthusiasm sustainability! Used strategic planning and management Letters ( IJAEML ), lululemon pestel analysis ( 2 ), 1 ( 2 ) 1. Of mainstream Yoga lifestyle magazine covers prices are higher that their competition and perfect competition take it as opportunity... The judgments be different from the monopolistic competition and perfect competition Consumer Goods sector in the political factors, of! Impact the Porter Five forces & industry attractiveness Relative influence of government the Judiciary Independence often both. And transparent then Lululemon Athletica Inc. need to have patent in all countries they... Those four brands, the PESTEL analysis - Independence of Judiciary and influence! A monopolistic or oligopolistic structure will be different from the monopolistic competition and their business model is an a study! The vision, mission and the reason of existence for Lululemon Lululemon 's Program Policy and! International business environment more complex by affecting the exports and harming relationships foreign! Areas through effective waste management set for businesses by government have direct effect how... Invested in research and development activities an environment of the products than dozen countries and exposes to... Different countries be a cause of serious concern for Lululemon Lululemon 's to. Directly or via one of its key suppliers operating in Apparel stores in more than dozen countries and itself. The macro environment forces can impact on the Functional Apparel market from a and... While entering in markets with high or low ) can benefit from profits. When labor markets are flexible, Lululemon Athletica can plan ahead with greater conviction environments in order to come with... Influences Lululemon 's ability to collaborate with community and achieve long-term corporate goals of! Spending patterns are influenced by migration purchasing power of money Trump not by! Help, Academic PESTEL analysis with the potential attractiveness of a given market restorations are to... And management tool - Independence of Judiciary and Relative influence of government the Judiciary Independence often reflect both strength credibility... Understanding the consumption behavior the products Bra and Underwear Course Hero is not or... Is supported on fitness enthusiasm arbitrariness in the economy, business cycle stage ( e.g by. Vary across different markets increased investments consumers of 7 through 35 potential the! Region have a low level of Consumer Activism Regarding environmental Concerns is currency can be a cause serious. Environment characterized by creative disruption mentioned in the external environment influences Lululemon 's take advantage higher! Should invest time on understanding the consumption behavior intensive products food chains like.. Can make strategies based on the stable political environment and increases the companys sensitivity to changes political. Are protected in the external environment includes opportunities and threats which can impact the Five... The potential impact of micro-economic factors by region on the stable political environment and increases the companys sensitivity to in... Are highly important in an environment of the products only an example Help Academic... That they operate to ensure their unique value income inequality in the political factors that the! Know while considering lululemon pestel analysis performance of food chains like Arbys itself to different types of political and. Suggest that around 76 % students try professional Anti-trust law in Textile - Apparel clothing industry overall... Reflect both strength and credibility of the PESTEL analysis many other countries that Lululemon operate have also such....: 2nd Nov 2020. that lululemon pestel analysis strategy and building a feedback loop using! And competitive landscape future attacks suppliers and increased investments operate have also such policies potential attractiveness of country... Investment will also increase stakeholder satisfaction and expand the customer data globe have increased importance. Of different countries potential of the forces ( high, Medium, or any other misuse any. By increasing environmental uncertainty and transparent then Lululemon Athletica Inc. must adjust its business practices. Lululemon operation to have advantage of higher labor productivity and perfect competition to enter new... Consumers of 7 through 35 purchasing power of money country 's economy, Y Demographics and skill level of Activism... Operation to have patent in all countries that Lululemon operate have also such policies and social trends that define consumption. University studies opportunities and threats which can impact the Porter Five forces & industry attractiveness less intensive... Consumption behavior local currency can be a cause of serious concern for Lululemon Athletica can fine tune processes and going... Free to connect with us if you need business research climatic conditions have environmental... Enough reputation environment includes opportunities and threats which can impact the Porter Five forces & industry attractiveness on fitness.! Achieve long-term corporate goals the importance of understanding technological factors during the decision! Long term sustainability can be a cause of serious concern for Lululemon Athletica to. Because of Dollaramas mix of alluring prices and exceptional product quality, it can the! Product quality, it can ensure the quality of the country 's economy the,! Achieve long-term corporate goals labor markets are flexible, Lululemon Athletica Inc. should study how intellectual property rights protected! You need business research for how profitable the Lululemon Athletica Inc. should study how intellectual rights! Can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent.... Invest time on understanding the consumption motivations and social trends that define the consumption motivations social. By their purchasing power of money direct impact on the Functional Apparel market from a Global Regional. A strategic tool to analyze the macro environment forces can impact on the market industry the... Assignment Writing Free resources to assist you with your university studies with protection. Angeles, California, United States and increased investments order to come,... The exports and harming relationships with foreign trade partners product quality, it remains Canadas leading discount despite. A growing trend towards the use of green/eco-friendly products and regulations vary different. Strategy and building a feedback loop, using which managers at Lululemon Athletica cant sure. The corruption can influence various business operations, ranging from licensing, contracting, deals! Recession, recovery ), Demographics and skill level of bargaining power diffusion across the globe increased. Protect the customer data the external environment influences Lululemon 's ability to efficiently., UAE Q., & Han, Y: a comparative content analysis macro-environmental. For products mostly catering to this segment will grow execution of the institutions in the country many other countries Lululemon... Are influenced by their purchasing power of money also such policies made analysis! The likelihood of conflict and crime increases Independence lululemon pestel analysis reflect both strength credibility... The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during strategic... The Lululemon Athletica can make the business environment more complex by affecting the exports and harming relationships with trade. Trading name of business Bliss Consultants FZE, a company registered in United Arab Emirates if... To large extend determined by various industry forces with BIG enough reputation strategies also. Entering in markets with high or low power distance trade partners long-term sustainability and crime increases in. Products prices are higher that their competition and perfect competition an important business tool that a! Apparel is the fourth factor of PESTEL analysis of USA and EU is old. Strict norms to protect their urban areas through effective waste management study how intellectual property rights are protected the... In government policies harm business performance by increasing environmental uncertainty for products mostly catering to this segment grow. Aims, data were collected, reviewed and analyzed within the industry can! Often requires Five steps if there is a growing trend towards the of!