Case 1 Mystic Monk Essay

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1. How strong are the competitive forces confronting lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. High Supplier Power There are a lot of suppliers available in the market that want to produce for lululemon because of the increased value of the company High Buyer Power Other brands offer the same products Low cost switching because other brands offer these items at a lower price Moderate New Entrants Popular athletic brands such as Nike, adidas and Under Armor are specializing in different aspects such as basketball and outdoor sports which are mainly for men thus, it has a different target market and brand identity as opposed to lululemon. Brands…show more content…
They approach community yoga teachers to wear their products so they can test it and recommend it to their students. Besides this, they give them free items and opportunities to deepen their relationships with them. On the whole, being able to focus on one aspect alone helps lululemon to make them standout among the pool of competitors accompanied by their community based strategy. 3. What do you see as the key success factors in the market for performance-based yoga and fitness apparel? -Community Based Marketing -Technological Innovation -Superior Customer Interaction 4. What does a SWOT analysis reveal about the overall attractiveness of lululemon’s situation? Strength -Style/ Comfort -Innovation -The product is designed to sustain 5 years of intended use while maintaining functional -Employee Training -Multiple green initiatives -Brand Identity Weakness -Quality control/supply chain -Loss of customer service with increased scale -Marketing targeted to mostly yoga instructors -High retail price -Weak brand recognition Opportunity -Increase demand in athletic apparel -Serve additional market segments -Fitness craze -Expand into additional geographic markets -Expand product line Threats -Economy -Copy cats -Niche of banking on niche markets -Increased competition from current large players in the market -New Entrants The SWOT analysis shows the strengths, weaknesses, opportunities, and threats

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