Example Of Case Study On Environmental Analysis For Lululemon

Lulolemon performed and environmental scan to gain further insight on their current business environment. For the strengths, the company uses ambassadors for brand awareness thus instilling a brand culture. Another strength is that the company targets a high end niche who can afford their products. For the weakness, the company’s brand is not as mature as its competitors. Also, has had issues with morale due to its leadership. As an opportunity, the company plans to introduce a new inventory system to keep up with the demands. They also intend to focus on e-commerce to target broader market and offer an opportunity to enhance sales. The company is threatened by the challenges in leadership, transition and culture. Moreover, forcusing on brand authority may impact of company sales due to change in company message.
For the PEST ANALYSIS, Due to NAFTA, it was easier for Lululemon to invest in North America. The company continued with economic struggles that affected its international expansion. The social movement geared towards healthy and active lifestyles enhanced their sales. Also, the increase of online shopping led to new ways of advertising increasing competition to rival companies.
The Porter’s five force analysis shows that their customers enjoyed a high bargaining power and can switch to other brands if dissatisfied. The company suppliers have a low bargaining power because the raw materials such as cotton and rubber are readily available. The company enjoys a large economies of scale meaning they have a low threat of new rivals. The company has access to distribution channels, which challenges other companies. The competition in the sports market was found to be very high with rivals attracting a bigger market share. The company has low threats because there are less good substitutes.