Lululemon

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TABLE OF CONTENTS EXECUTIVE SUMMARY 1 INTRODUCTION 2 CASE ANALYSIS 3 Five-force analysis 3 Competition 4 SWOT analysis 5 Value chain 5 Strategy 7 Financial and operating performance. 8 RECOMMENDATION 10 In term of strategy 10 In terms of management 10

EXECUTIVE SUMMARY

Lululemon Athletica Inc., founded by Dennis Chip Wilson, is a self-described yoga-inspired athletic apparel company, which produces a clothing line and runs international clothing stores from its company base in Vancouver, British Columbia, Canada.
Since 1998 when it was formed, Lululemon Athletica has performed as a niche market leader with a strong brand image and awareness among fitness professionals by distributing high quality products
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Limited bargaining leverage helps Lululemon Athletica, which have a short-term positive impact on this entity, which adds to its value. "Large number of customers (Lululemon Athletica)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. * Bargaining power of suppliers
The more diverse distribution channels become the less bargaining power a single distributor will have, which positively affects Lululemon Athletica
High levels of competition among suppliers acts to reduce prices to producers, which has a positive impact on Lululemon Athletica in short term, however, in long term, suppliers will try to find other consumers instead of reducing prices.
When suppliers are reliant on high volumes, they have less bargaining power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This can positively affect Lululemon Athletica, but just in short term, not in long term.

* Intensity of competitive rivalry
Sport Apparel is a large industries with many firms such as Nike, Adidas, Reebok, Under Armour, the Gap, Athleta, Nordstrom, Lucy and Bebe store. Large industries allow multiple firms and producers to prosper without having to steal market share from each other. Large industry size is a positive for Lululemon Athletica. … This qualitative factor will lead to an increase in costs.
Few competitors mean fewer firms are competing for the same customers and resources, which is a

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