General Environment
In analyzing the general environment of Lululemon the following factors are most important for the company to understand these factors and the trends within them: technological factors, political factors, sociocultural factors, and demographics. Through better understanding the effects of the factors in the industry and the company they can analyze the threats and opportunities within the factors and change their strategies to align them as necessary.
Technological Factors
Today, more than ever before, technology and businesses go hand in hand as the population relies on having access to online shopping and online socializing. For consumers it is efficient and convenient to be able to do their shopping with the click of a button in the comfort of their houses. Therefore, improving e-commerce sales
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Through its constant want for growth and expansion in countries Lululemon must remain aware of the implications the regulations could take on their financials through interacting in different nations with their local governments.
Sociocultural Factors When analyzing the sociocultural factors, it is particularly important to pay close attention to what society values in terms of trends. Today’s population still looks at the “athleisure” trend to be in the comfort of their workout clothes, but also being comfortable enough to wear it throughout the day. As mentioned before, Lululemon has suffered from backlash due to controversial misconduct from their former CEO and from statements made from their founder. Therefore, now it is more important than ever for it to not give reasons to customer attitudes by tainting their brand image. Through this, it shouldn’t only focus on the conduct of management, but also how the behavior of their suppliers and third-parties they work with could potentially reflect on the company as well.
The company has plans to open nearly 200 new stores worldwide. In preparation, lululemon athletica has hired an experienced CEO, Robert Meers, who was at the helm of Reebok for 15 years. In 2005, the company implemented a five-year vision called the Community Legacies program which is based on the belief that “every person we hire, garment we create, store we open, customer we educate, and yoga class we attend contributes to building a legacy in our communities.” 9 This goal and action plan, along with the deep-rooted commitment to ethical business practices and maintaining a health and fun-filled environment in communities it operates in, will guide lululemon athletica towards success as a global retailer.
When it comes to a social aspect, Lululemon is becoming an increasing trend: a result of consumer approval. The company does take hits though for its return policy and many people feeling that their staff is not very friendly. The media took blows on the company when there was a murder that took place at one of their stores and the conflict was between two of the employees(Lawrence). They are seen as having sustainable development and being environmentally friendly. They are also conforming to demographic changes and developing lines for men and youth. As for a technological aspect, they are praised for their several forms of social media and keeping customers up to date as well as their up keep of fashion trends(MBASkool).
The fitness clothing market is growing rapidly. Customers’ new found inclination towards living healthier lifestyles has produced an increase in participation of people into various physical activities. Hence, the high levels of competition in the fitness and
Lululemon’s negligence towards their poor quality products can be traced back to 2012 when some of the first poor quality reviews
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
The athletic apparel industry has shown a large increase in popularity. Global sales of sport clothing have increased from 146.1 billion US dollars in 2007 to 162 billion US dollars in 2012(Global Participative Sport as Consumption). Particularly in the United States, sales of sport apparel have increased by 7% from 2013 to 2014 (Wingus). There has been a large trend in healthy living, as “activewear accounted for $33.7 billion in sales and made up 16 percent of the apparel market” (Wingus). The industry is booming, as sportswear, specifically yoga pants, has transformed into people’s daily apparel. (Refer to Appendix Table 1) Huffington post noted, “people are wearing trendy workout clothes all day, every
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
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”.
This case is an unintentional, product failure crisis. The initial crisis was handled by using the compensation strategy, where Lululemon offered full refunds on their product. The company was active in answering customer concerns and inquiry; however, despite these messages, it was not effective enough for the customers (Hansen, 2016). Lululemon appeared to be evading responsibility, thus discrediting the brand. Through various sources, the company had initially put the blame to their suppliers without further discussing with them prior to their announcement. Their denial approach, that this crisis was not the fault of the company, may have resulted in a decrease in the organization’s credibility and increased hostility of the stakeholders.
Approximately 26 million animals are used every year in the United States alone for research and commercial testing (“Background of the Issue” 1). For years, legislators have debated the pros and cons of animal testing, and laws were passed to attempt to fix the inhumane treatment of the cute, innocent testing subjects, the animals. Although the Animal Welfare Act (AWA) was revised numerous times, “the species most commonly used in experiments (mice, rats, birds, fish, reptiles, and amphibians) comprise 99% of all animals in laboratories” and are the animals that are specifically exempted from protection under the act (“Experiments on Animals” 2). A simple fix to animal cruelty during testing is to use alternative methods since human and animal bodies already vary greatly. For years, animal testing was the best option because there was no alternative to testing on a living, whole-body system; however, in the age of technology, there is no reason for millions of animals to be killed due to the severity of the testing. Therefore, animal testing should be banned because alternative methods provide more accurate results since human bodies are very different than animal bodies; furthermore, animal advocacy organizations should promote cruelty-free products more so customers know what to purchase and use.
Competitive Advantage and Customer Value proposition go hand in hand. “Competitive Advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and service that justify similar, or possibly higher, prices. “Customer Value Proposition is “a business or marketing statement that describes why a customer should buy a product or use a service. It is specifically targeted towards potential customers rather than other constituent groups such as employees, partners or suppliers.” Lululemon’s Competitive Advantage and Customer Value Proposition is:
Their ambassador program also helps the company grow they have elite athletes being their ambassadors like cyclist Ryan Leech. Design for the product is one of the most important things; it makes you stand out from your competitors. Lulu design team is based out in Vancouver. Lulu had created fabrics like Luon (breathable and cottony soft) and Silverscent (helps you not smell when you sweat) in partnership with apparel manufacturers, to make their products. They are also in the progress of developing fabric that protects you from UV. If you are like me, you know just by the touch of fabric if it’s Lululemon or not. It has such a significant touch, depending on what you get. These are great for marketing it makes Lululemon different from their competitors.
What does the word propaganda really mean? For most of us we assume that it is a word for negativity use. Just to assure those that think of propaganda as a negative word. Propaganda does have a positive objective if used correctly. The word propaganda is defined in a few different ways, But in the most general usage, it varies from bad to good persuasion of our minds. It is used during election time to our daily lives on television to our newspaper stands. According to Donna Cross's essay, "Propaganda: How Not to Be Bamboozled," there are thirteen different types of propaganda; this paper will discuss six varieties. George W. Bush and Dick Cheney used primarily every sort
Introduction: This business analysis will define the various problems related to the manufacture of the Luon Pants made by Lululemon Atheltica Inc. The Luon product was pulled because of a higher ration of sheerness, which made the pants. Lululemon Inc. has also been negligent with handling customer service at local retail outlets. A More so, the corporate leadership at Lululemon Inc. has been negligent in acknowledging heavier weight consumers that are not part of the “physically fit” demographic. A systems analysis of these various parts of the Lululemon corporation that need to be resolved to return the company to higher performance quality in pant materials, corporate leadership, and customer service.
Many organizations industriously look for the opportunity to gain the competitive advantages in their industries. One of the opportunities that frequently used by the organization is the implementation of e-commerce. Thus, the e-commerce and the online sale transaction become popular in each industry. E-commerce provides many benefits, such as the saving of shopping time, the cost savings, convenience, and free from geographical constraints.