Lululemon Case Study Essay - 947 Words

LULULEMON CASE STUDY FEBURARY 9, 2013 Question # 1 SWOT Strengths: niche market leader, product technology, customer focused, quality, innovation, brand, corporate social responsibility, and sustainability Weaknesses: perceived female focus, Local centricity, price point, inventory, perceived as yoga only, distribution, and access to stores Opportunities: Product diversification, line expansion, accessories, leveraging perceived expertise, category leader, and expert Threats: Buyout, fad potential, low barriers to entry, competition, global economic state, and unfavourable exchange PEST Political: childhood obesity, costs on healthcare, tax incentives for extra-curricular programs, healthier lifestyles and thinking, and†¦show more content†¦This permits Lululemon to set the prices high and enjoy higher profit margins. The company’s products are extremely unique which also drops the bargaining power of buyers. Industry Rivalry: Nike Yoga, The Gap Athleta, Adidas, Lotuswear, Under Armour Question # 2 Resources and Capabilities Active brand connection with consumers, its own distribution and high quality products enabled the company to offset a high threat of substitutes and intense rivalry among competing firms. This results in extremely loyal customer base and brand popularity. Their intangible resources include company’s reputation, customer interaction, brand name and the perception of the product quality. While tangible resources are its stores (300 stores in Canada, United States, Australia and Hong Kong), distribution channels, and knowledgeable work staff. Human Resources include the empowerment of its employees by turning them into educators and engaging them into many aspects of the retail operations as well as marketing, advertising and clothing design. Capabilities derive from the following functional areas: human resources, management, manufacturing and marketing. The company has an ability to envision the future of clothing and managed to create an effective culture that is hard to copy. From marketing perspective, Lululemon’s strategy is based on innovative, low-cost promotion strategies, effective merchandising through its front store and superior customer service.Show MoreRelatedLululemon Case Study2260 Words   |  10 PagesAssignment for Course: MGT 5090 – Entrepreneurial and Strategic Thinking Submitted to: Dr. Regina A. Greenwood Submitted by: Anais Carrasco Date of Submission: May 30th, 2013 Title of Assignment: CASE 4 – Lululemon Athletica Inc. CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I usedRead MoreLululemon Case Study1306 Words   |  6 PagesAssignment 1 Case Study Lululemon 1. Considering the five forces of competition and how they direct the profit potential for a given industry, discuss how the forces help explain Lululemon’s performance. 2. The resource-based model assumes that each organization is a collection of resources and capabilities, which provide the basis for a firm‘s strategy and its primary source of above-average returns. Use this this model to outline Lululemon‘s core competencies and how their capabilitiesRead MoreLululemon Case Study1609 Words   |  7 PagesCase Study- lululemon Ethics and Social Responsibility Executive Summary Founded in 1998, lululemon has become an extremely successful company. Over the last 12 years of operation, its mission is to improve health, make a difference in all the communities it is located in, and provide guests with quality products to help them live healthy lives. Currently, lululemon still strives to make a difference in each community through the Community Legacies Program. Plans for expansion are also in effectRead MoreLululemon Case Study1094 Words   |  5 Pagesfood chains, which appeal to the youth, such as Chipotle and offer take-out delivery. Personally, I see Amazon capturing the food delivery service in the near future. However, some analysts such as Derrick, believe Amazon’s next step is to acquire Lululemon. All of this suggestion is highly probable. In the next century, it would not be surprising to see if Amazon was able to compete for all of these suggestions. Costco Costco’s channel management is certainly one of the reasons why the organizationRead MoreLululemon Case Study Essay example780 Words   |  4 Pageslevels increase, and also, the introduction of women-oriented gyms has also increased the customer base by encouraging more women to partake in fitness. Moreover, the technologies of designing and manufactured apparel have been constantly improved. Lululemon`s fastest wicking fabric is primarily used in running gear for women and men which the moisture wicking is inherent in the fabric so will last for the life of the garment. The analysis from porter`s five forces shows: Rivalry between establishedRead MoreLULULEMON Ethical BehaviourSocial Responsibility1467 Words   |  6 Pagesï » ¿ETHICAL BEHAVIOUR AND SOCIAL RESPONSIBILITY lululemon athletica There are many ways to measure the success of a business. A financial analysis of lululemon athletica, a Vancouver-based company, would show that it is valued at more than $220 million. Would looking at an improved level of health in its community be another way to measure the success of this company? lululemon athletica founder Chip Wilson would welcome your investigation of the improved health and well-being of people in the communitiesRead MoreThe Problem Of Defective Yoga Pants1297 Words   |  6 PagesBackground: This case study analysis will define the problem of defective yoga pants products, corporate corruption, and the growing media conflict of â€Å"weigh shaming† in the sizes-2-12 limits on Lululemon yoga pants. Lululemon has seen a fall in the price of stock market shares due to these major defects of yoga pants products and corporate unethical decision making processes. The Problem: Lululemon has a growing reputation for making defective yoga pants (due to sheerness and â€Å"see-through†)Read MoreLululemon Athletica Inc. Case Analysis1506 Words   |  7 PagesThis paper commences by defining the problems that were faced by Lululemon Athletica Inc in 2013. After, the author explores the causes of the issues that the company was experiencing and the effects that they had on Lululemon Athletica Inc. The next step is to look at ways in which the issues could have been addressed both for the short-term and long-term. When all is said and done, the audience will fully appreciate why â€Å"Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrateRead MoreQuality And Quality Of Product Quality1268 Words   |  6 Pages†¨In this report I will be focusing on Quality Control, Quality Assurance, Product Specifications and why they are all so important in terms of product quality. I will also look at an instance of product q uality failure, in this particular example Lululemon had to recall certain products because they had failed to adequately test the quality of those products. I will identify exactly what happened, why it happened and what was done to rectify the situation. †¨ 2.0 Background Information†¨Ã¢â‚¬ ¨2.1 QualityRead MoreLululemon2462 Words   |  10 PagesIntroduction Lululemon is one of the Canada’s best retailers of technical athletic yoga apparel. Lululemon’s yoga inspired apparel is marketed under the two brand names Lululemon Athletica for more mature women and Ivivva Athletica for younger girls. Lululemon primary target customers are educated and hard working women, who understand the importance of healthy and active lifestyle. Majority of these women are Caucasian who are mainly urban and have higher income, since Lululemon is an expensive