Lululemon: SWOT Analysis

1561 WordsJan 7, 20186 Pages
Lululemon is a marketer of clothing that ostensibly inspired by yoga. The company has carved out a niche for itself in the athletic apparel market by focusing on this type of clothing, marketing primarily to females, and selling at its own-branded stores. The company has enjoyed considerable success of late. Revenues have grown from $147 million in fiscal 2007 (basically calendar 2006) to $711 million in 2011. Net income was $7.67 million in FY2007 and $121.85 million FY2011 (MSN Moneycentral, 2012). This paper will outline the external environment and internal competencies of Lululemon as it attempts to build on its successes thus far. The SWOT analysis is an environmental scanning technique that forces managers to think about their firm and the environment in which it operates (QuickMBA, 2010). The objective of this technique is for the managers to gain insights into the ways that their company matches up with its environment, in both positive and negative ways. Lululemon has some strengths that have helped it to grow rapidly. The first strength is that the company has developed a strong brand. In a very short time, Lululemon has become a widely-recognized brand. Not only does having a strong brand help with sales in existing markets, but it facilitates moves into other markets as well, because customers there already have some familiarity with the brand.. Lululemon also derives strength from its design, which appeals strongly to a wide segment of apparel market

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