Please analyze the retail apparel industry (segment as you like). This includes and general environment, Porter's five forces, and a competitive landscape. On the assignment, develop slide notes for the retail apparel industry from the perspective of Lululemon. 

 

- Summarize the Segments of the General Environment for Lululemon (See Table 2-1) How does the general environmental analysis affect each of Porter's Five Forces (See section 2.5)? 

 

- Use Porter's Five Forces model to analyze the company's industry. Here you need to analyze each force against some of the general environmental categories (technological, demographic, economic, political/legal, sociocultural, global, and physical environment trends). What is causing the force to change? When analyzing the competitive rivalry conduct a competitor analysis as shown in Figure 2.3. 

 

Finally, focus on the intersection between changes in the macro environment and what the business needs are now and in the future to determine and list the company's opportunities and threats.

   

2-5 Interpreting Industry Analyses Effective industry analyses are products of careful study and interpretation of data and information from multiple sources. A wealth of industry-specific data is available for firms to analyze to better understand an industry's competitive realities. Because of globalization, international markets and rivalries must be included in the firm's analyses. And, because of the development of global markets, a country's borders no longer restrict industry structures. In fact, in general, entering international markets enhances the chances of success for new ventures as well as more established firms. Analysis of the five forces within a given industry allows the firm to determine the industry's attractiveness in terms of the potential to earn average or above-average returns. In general, the stronger the competitive forces, the lower the potential for firms to generate profits by implementing their strategies. An unattractive industry has low entry barriers, suppliers and buyers with strong bargaining positions, strong competitive threats from product substitutes, and intense rivalry among competitors. These industry characteristics make it difficult for firms to achieve strategic competitiveness and earn above-average returns. Alternatively, an attractive industry has high entry barriers, suppliers and buyers with little bargaining power, few competitive threats from product substitutes, and relatively moderate rivalry. Next, we explain strategic groups as an aspect of industry competition.