Lululemon Athletica Inc. Case Analysis

1506 Words Dec 5th, 2015 7 Pages
This 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 “Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrate on the needs of the consumer”.
Difinition of Problems
In 2013, Lululemon Athletica Inc found it succession of problems that damaged the company’s reputation, these included the following: (i) quality control was top on the list as there was a recall of 17 per cent of the company 's Luon pants, (ii) lawsuits issues with investors, (iii) withdrawal from the Canadian stock exchange, and (iv) bad publicity (Huang, 2014, p.5-7).
Explanation of Problems
In relation to the withdrawal of the Luon pants from the market in March 2013, this was owing that the pants were viewed as being over transparent by many (thehollywoodgossip, 2013). In May 2013, the lawsuits that were filed against the company regarding the renuneration increase of top managers and the accusation about hiding information concerning defected goods in order to rise stock prices – were cause for concern (Huang, 2014, p.7). This is because the lawsuits were filed by investors (Huang, 2014, p.7). In June 2013,…
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