Lululemon Case Study

Lululemon’s strategy is not only sell the product, they also offer healthy life style and targeting very specific segment which is customers who do yoga. Their competitive advantage is they offer benefits except a good product such as physical

Economic: Continued economic struggles, especially within the European Union, have the potential to negatively affect Lululemon’s international expansion(Thomas

Dennis Wilson had been in the skate, surf, and snowboard business for over 20 years when he took a commercial yoga class that was offered in Vancouver. Wilson found the results to be thrilling. He quickly was immersed in the idea of making his yoga experience the best possible. He believed the clothes that were being used for yoga were not the most appropriate. They made him sweat and weren’t very easy for the maneuvers yoga required. This would lead to the beginning of Wilson’s success.

Lululemon is a rapidly growing company with a different niche for its products. Its philosophy as well as their business model has allowed them to increase revenue over the past years. The dilemma they faced is how to continue expanding without losing their special niche, grassroots and a nontraditional feel of the brand that sets them apart from their competitors.

This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that of its closest competitors. In conclusion to the analysis, recommendations have been made to potentially guide Lululemon Athletica, Inc. in a positive direction in regards to its future endeavors. The following

Lululemon is a large company, making clothing for athletic activities, not only are they in the women’s athletic range, but they have hit the men’s market and youth range as well. A SWOT analysis will be used to break down Lululemons strengths, weaknesses, opportunities, and threats to the business. Strengths which Lululemon have achieved include multi-faceted and community-based approach strategy, making customers feel part of a community through marketing strategies like there “ambassador program, social media, in-store community boards and grassroots initiatives” (Lululemon, 2016 Annual Report, 2016, p. 3). Touchpoints which have been a part of this multi-channel include Lululemons websites www.lululemon.co.nz and ivivva.com which is based around female youth active ware. With Lululemon having 12,500 full-time employees worldwide (Lululemon Athletica Inc. (LULU), 2017) with 406 stores (Lululemon, 2016), their large market capital of $8.33 billion (Lululemon Athletica Inc. (LULU), 2017), shows the total value of Lululemons shares of stock. Lululemon having $581.1 million in net revenue, this is an increase of 13% while their gross profit increased by 17% rising to $297.4 million. (Lululemon Athletica Inc. Announces Second Quarter Fiscal 2017 Results, 2017). This shows a steady increase in profit for Lululemon for 2017 which is a strength for them.

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 brand .Most of their products are design to offer fit, performance and comfort while incorporating both style and function. On another hand, American Apparel

Lululemon Athletica’s (LULU) competitive advantage hinges on the company’s use of the four management pillars; efficiency, quality, innovation and responsiveness to clients (Tsang et al, 2013). LULU achieves unrivalled efficiency through outsourcing and technological advances. Even though LULU continues to design their merchandises in Canada, the manufacturing is outsourced from countries such as Bangladesh, China and Indonesia. The company has benefited from technological advancements by allowing customers the comfort of buying merchandises online, through the company’s website, which comprises of free shipping straight from the manufacturing plant, and thus saves on shipping costs, time, as well as retail store resources like signage and employees.

The main issue the company faced is quality control issue impacting brand image. There is narrow focus in both consumer segments and product line. There is also limited brand recognition and limited geographic market such as America. The quality of yoga pants were not good because customer companied about sheer Luon Yoga Pants and the fabric is so see through.

Able to diversify its product range to meet market demand including women’s wear, men’s wear, accessories and home wares.

Therefore it makes it hard for companies like Nike, Adidas and Under Amour etc. to be able to have power over the customers. If a buyer is dissatisfied with any company in the industry; that buyer can easily switch to another company to acquire the products that they need.

American Apparel, is an American multi-national clothing manufacturer, distributor and retailer since 1988based in Los Angeles, California. Dov Charney, a Canadian business man was a founder and former CEO of the company. He was involved in nearly every part of the business process from design and manufacturing to marketing. The Ernst & Young named Charney Entrepreneur of the Year in 2004. He was also termed "Man of the Year" by various fashion

At the end, the poor miller becomes wealthy because of the diamond inside the fish. This type of literary device is irony, or situational irony in this case, as throughout the story he ends in poverty every time he acquires money. This is the only time the author shows the good side of money, as it brings the poor miller a new lifestyle for himself and his family. The poor miller now lives happily without having to worry about any economic problem, as he now has his own business. He was able to afford a new home and a holiday home, where he encountered the two wealthy men, showed them what he has gained, and showed them that he was truly an honest men. (Anaya 30-31) At the end of the story the poor miller became wealthy and never let money

The author's language is concrete, and for the most part pretty easy to understand. The reading is short, and very descriptive. The author uses descriptive adjective, she wants you to image exactly where the story takes place, and what is happening.

Have you ever doubted a belief that you held one hundred percent true just a day ago? So have I and many other people. Many times, people question their ideas or beliefs or other people’s ideas and beliefs. I fall victim to this cycle of doubting and questioning as well as I question my Christian religion. I question my beliefs, tell myself to stop doubting, then I reinforce my beliefs with facts. I ponder on the general questions non-Christian believers ask: Why does evil and suffering plague the world if there is a benevolent God? How do we know that Jesus is real? I reflect upon these questions because I regularly hear them. After hearing the questions asked so often, I start to contemplate the responses.