Lululemon Competitor Analysis

Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune

a few percent, in 2012 the gross profit margin is the highest it has ever been

From a company that has had profound growth since its startup, lululemon Athletica, Inc. has had its battles with success and failure in recent years. As with any company in the Clothing, Retail and Appeal Industry the road to recovery or prosperity has a multitude of internal and external factors that can influence productivity. However it’s the organizations responsibility to curtail these setbacks, and put measures in place to ensure future growth and sustainability.

The first Lululemon store was initially created as a place for people to gather to learn and share ideas about a healthy lifestyle. As the company expanded, Lulu could no longer target every individual walking into the store with knowledge of healthy living. At this point, the company shifted its focus to educating their employees who could positively influence everyone who walked into the stores. The thought and reasoning that went into the first Lulu store has continued as the company has grown. It has continued to target active people while pushing everyone towards a healthy lifestyle. Its main target market is young woman, between 15 and 34 years old, in the middle to upper classes. One of

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

Athletic apparel has come a long way from the era of pairing a dowdy gray cotton sweatsuit with tennis shoes. Now, athletic apparel promise to hug the body with materials that insulate the wearer from cold weather, while wicking away sweat to boost performance. Running shoes can be synced with computers to measure performance. Other advances in sports apparel include tagless T-shirts and fabrics that manage odors. Technological advancements allow manufacturers to maintain or increase prices and keep consumers loyal to their brands. Consumers have responded to the high-tech offerings, with athletic apparel sales reaching $60 billion in 2008, according to NPD Consumer estimated data. In this report, we analyze two apparel

Lululemon is a high quality clothing brand selling items at an expensive price. Customers are willing to pay a substantial amount of money to purchase this clothing. Lululemon has the power to adjust prices constantly because they have a high budget. Hundreds of companies sell athletic clothes, but it can be argued that customers spend money to buy the logo rather than the clothing itself. Some of Lululemon’s competitors are Athleta, Nike, Fabletics, and Under Armor. Lululemon's $98 pair of leggings looks almost exactly like Athleta's $79 pair. Lululemon has the ability to do this because they know their customers will choose to buy their logo oppose to Athleta’s. The target area for Lululemon is typically upper middle class women but men and

The competitive pressures from rivalry among the competing sellers of Lululemon is quite strong. In the industry, there are many competitors provides the performance yoga and fitness apparel such as Nike, Adidas, Under Armour, The Gap, Athleta, Nordstrom, Lucy, and bebe. One source of the competitive pressure is the wide product line of performance yoga and fitness apparels from the rivals, which provide wider selection for the buyer. Besides, some rivals provide cheaper products or has popular

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.

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”.

Adidas is a sportswear manufacturing company started by Adolf Dassler. Adidas group has incorporated brands including Adidas, Reebok, TaylorMade-Adidas and Rockport. The wings of the company are widespread and have assimiliated other productions including handbags, shirts, spectacles, watches, balls, and sportswear. Adidas is being the largest company that sells footwear in the European market and have achieved a momentous market share at the global platform. Adidas has achieved phenomenal sale and have reached the pinnacle of success on the global scale with other international footwear companies (McDonald & Milne, 1999).

Nike is one the leading shoe and athletic clothing company in the United States and probably one of the largest in the world. In 1993, Nike's yearly revenue became as large as the NBA, NFL,

Currently, Nike is one of the biggest manufacturers, suppliers and marketers of athletic shoes, sports equipments and sports apparels. The revenues for the year 2013 were reported to be about $25.3 billion.

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.