Lululemon Pest Analysis

In: Business and Management

Submitted By wendi
Words 1920
Pages 8
Summary of Article, “Lululemon rides out recession in quality fashion” Many clothing firms cut price to allure customers in the recession. However, Christine Day, the vice president of Lululemon adopted a contrary approach, now lululemon is profitable. The success of lululemon in the recession attributed to the innovative strategies. First of all, Christine Day did not lower price, but devote into improving quality of clothes. Besides, she attracted customers by offering new products such as running outfits, jackets and accessories and building an e-commerce site. With these successful reforms, lululemon did not only pay off, but also increase the sales demand. Due to insufficient inventory, lululemon has to invest more money into supply chain to meet customer demand. In a short, lululemon is doing its business in an optimistic outlook.
PEST Analysis (See Appendix A)
Political
Department of Finance Canada (2009) reported Canada introduced Economic Action Plan in January 2009. One major part of this plan is reducing tax permanently. Personal income tax falls over $1 billion for the 2009 taxation year, corporate income tax revenues fell $11.2 billion and Goods and Services Tax (GST) revenues declined $4.2 billion.
Canada is one member of North American Free Trade Agreement (NAFTA), other members in NAFTA are America and Mexico. Though Canada trade with a lot of countries around the world, the major trading partner of Canada is the U.S., accounting for 77.7 percent of exports in 2008 (Ontario Canada, 2009).
Economic
Department of Finance Canada (2009) states Canada has been significantly affected by the global recession and Canadian economy growth began to slow in the fourth quarter of 2008. Real GDP declined by 3.7 percent in the fourth quarter of 2008.
Although Canadian economy is being affected by the global recession, the Canadian economy is…...

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