Overview In this module, you will analyze the retail apparel...

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 Environmentfor 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 toanalyze 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.

Knowledge about these four dimensions helps the firm prepare an anticipated response profile for each competitor (see Figure 2.3). The results of an effective competitor analysis help a firm understand, interpret, and predict its competitors' actions and responses. Understanding competitors' actions and responses clearly contributes to the firm's ability to compete successfully within the industry. Interestingly, research suggests that executives often fail to analyze competitors' possible reactions to competitive actions their firm takes, placing their firm at a potential competitive disadvantage as a result. Figure 2.3 Competitor Analysis Components + Future Objectives How do our goals compare with our competitors' goals? . Where will emphasis be placed in the future ? . What is the attitude toward risk? Current Strategy . How are we currently competing? . Does their strategy support changes Response in the competitive structure? . What will our competitors do in the future? . Where do we hold an advantage over our competitors? Assumptions How will this change our relationship Do we assume the future will be volatile? with our competitors? . Are we operating under a status quo? . What assumptions do our competitors hold about the industry and themselves? Capabilities . What are our strengths and weaknesses? . How do we rate compared to our competitors?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 ofthe development ofglobal markets, a country's borders no longer restrict industry structures. In fact, in general, entering international . . 1|: markets enhances the chances of success for new ventures as well as more establlshed flrms. Analysis ofthe 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 a: product substitutes, and relatively moderate rivalry. """"" Next, we explain strategic groups as an aspect ofindustry competition. 2-1 The General, Industry, and Competitor Environments The general environment is composed of dimensions in the broader society that influence an industry and the firms within it. "We group these dimensions into seven environmental segments: demographic, economic, political/legal, sociocultural, technological, global, and sustainable physical. Examples of elements analyzed in each of these segments are shown in Table 2.1. Table 2.1 The General Environment: Segments and Elements Demographic segment . Population size . Ethnic mix + . Age structure . Income distribution . Geographic distribution Economic segment . Inflation rates . Personal savings rate Interest rates . Business savings rates . Trade deficits or surpluses . Gross domestic product . Budget deficits or surpluses Political/Legal segment . Antitrust laws . Labor training laws . Taxation laws . Educational philosophies and policies . Deregulation philosophies Sociocultural segment . Women in the workforce . Shifts in work and career preferences . Workforce diversity . Shifts in preferences regarding . Attitudes about the quality of work product and service characteristics life Technological segment . Product innovations Focus of private and government- . Applications of knowledge supported R&D expenditures New communication technologies Global segment . Important political events . Newly industrialized countries . Critical global markets Different cultural and institutional attributes Sustainable physical . Energy consumption Availability of water as a resource environment segment . Practices used to develop energy . Producing environmentally friendly sources products Renewable energy efforts Reacting to natural or man-made