Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. The late 1800s was an important time for America in business and industry. PESTEL stands for - Political, Economic, Social, ~ 0.0 Page). In some countries, recycling has almost become a business norm. There is a growing trend towards the use of green/eco-friendly products. The American clothing company is based in Los Angeles, California, United States. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. WebSociological Analysis Of Lululemon 191 Words | 1 Pages. Subscribe now to get your discount coupon *Only Political Lululemon Athletica Inc. must study and predict the labor market conditions to understand how it can attract talented workers and leverage their skills to improve business performance. The power distance within any society shows the acceptance of hierarchy and income inequality. Lululemon Athletica Inc. should consider the following legal factors when exploring a new market. on WhatsApp for any queries. 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. 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. - Empowerment of Supply Chain Partners Lululemon Athletica should analyze areas where technology can empower supply chain partners. Is the "Yoga Bod" the new skinny? Lululemon Athletica Inc. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. WebImportance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps 1. Lululemon Athletica Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 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. Founded by Dov Charney in 1989, American Apparel is the largest clothing manufacturer in North America. 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. There is consistency in both policy making and implementations of those policies. 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. If there is huge income inequality in the society then the likelihood of conflict and crime increases. 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). In Lululemon Athletica SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are Lululemon is fast growing company that open stores or franchise in market such as America, Japan, Australia and Europe. 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. 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? WebPESTEL Analysis is a strategic management tool that Lululemon Athletica management can use to make better decisions. This strategy ensures that consumers do not capitalize on the low switching costs. Hence, Lululemon Athletica Inc. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. - 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. Info: 1099 words (4 pages) PESTEL Example that shape strategy and competitive landscape. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. WebPestel Analysis OF Lululemon Athletica Case Study Help Political factors: The reality that Pestel Analysis of Lululemon Athletica has actually expanded its services in different Lululemon sell premium products and they customer are more brand loyal and will stick. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Number of factories increased throughout the nation, it became one of the leading industrial nations in the world. The business practices of the Lululemon Athletica Inc. are influenced by the prevailing economic structure. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Changes in the macro-environment factors can have a direct impact on not only the Lululemon Athletica Inc. but also can impact other players in the Textile - Apparel Clothing. 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. so converse have to change their policy to stable in the current market. 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). However, it started off Lululemon Athletica should have capabilities to navigate under this hyper sensitive environment. Social factors that leadership of Lululemon Athletica Inc. should analyze for PESTEL analysis are -, Technology is fast disrupting various industries across the board. At its early beginnings, A&F had been an outfitter of sporting goods and rugged apparel, but also a place where individuals could learn skills and get involved in the community. 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. A framework for PEST analysis based on fuzzy decision maps. Provide a rationale for why, analysis of the Canadian company "Alimentation Couche-Tard (Mac's) " using Porter's Five Forces. 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. This report will provide useful information which can be guidelines for Uniqlos strategy to enter a new market. Moreover, the business performance of Lululemon Athletica Inc. is also influenced by the extent to which the host country government has spent on core infrastructure development. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Consequently, the employment of additional staff and procurement of new resources to control for technological threats is liable to generate additional expenses. 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. Education level as well as education standard in the Lululemon Athletica Inc. s industry, Culture (gender roles, social conventions etc.). - 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. 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. 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. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Thus significantly impacting the ability of Lululemon Athletica to build sustainable competitive advantage Tax level set for businesses by government have direct effect for how profitable the Lululemon company is. WebLululemon Athletica Inc PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. 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). Lululemon Athletica Inc. need to study data protection regulations to protect the customer data. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Anti-trust law in Textile - Apparel Clothing industry and overall in the country. Lululemon Athletica Inc. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Attitude towards immigration has come under sharp focus. The first Converse All Star shoes was made in the middle 1900 as a shoes for basket ball players. - 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. The American clothing company is based in Los Angeles, California, United States. 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