Swot Analysis Of Lululemon

Despite previous and recent controversy going on within Lululemon the company still looks to fight for their brand image and focus on their core competencies to renew the companies image. While former CEO, Laurent Potdevin did help create the trend of athleisure the company still aims to maintain on focus on the trend (Schmidt, 2018). Due to high comfort of athleisure wear for millennials, they want to continue to strive to bring that to consumers lifestyles. Consumer’s would be able to wear Lululemon products “... in the office, while running errands, when out with friends, [and] at the gym…” (Fromm, 2016).

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

A company which is hoping to prosper in the foreign market must pay real close attention to the new countries laws and regulation. They also need to pay more attention the market that they are trying to sell the product to. Thus doing more research and positioning and constant improvement is necessary for the company to strive in order to reach the

JC Penney is an American department store chain with 1,095 locations throughout the United States. In the latter half of the 20th century, shopping malls became very popular and most of the company’s stores were situated in the downtown areas, they followed the trend of developing more stores in the shopping malls to attract customers and increase the financial profitability of the company. Conversely, JC Penney had freestanding stores, and was able to get consumer traffic which helped the company earn a profit and increase its market share.

Lululemon is the third leading speciality sports apparel store, behind Nike and Adidas (appendix 1), retailing for women and a small range of men. They have capitalised on the growing trend of fashionable gym and street clothes (Ibisworld, 2016). Their vision is “Elevating the world from mediocrity to greatness”, through their 350 stores and online store shipping to 80 countries (Lululemon, 2016). A SWOT analysis in appendix 2 reveals the sustainable niche of Lululemon’s market, while below demographics, social trends and environment macro-environmental factors are discussed due to their relevance to Lululemon as a modern brand, the others are outlined in appendix 3.

The industry that Lululemen operates in is the Women`s Apparel industry which is a mature, large and fragmented market that has highly sensitive to the economic conditions and trends.

Lululemon operates in an era in which the world has become much more intertwined due to 2.4 billion having access to the internet. People are more connected to not only others but also the world around them. This has to lead to a natural hunger for connectivity in our daily lives. Lululemon is piloting in-store technology and RFID programming (Radio Frequency Identification Device) to give customers better access to the item they are looking for in real-time, including online inventories while they shop.“The system has increased the company's inventory accuracy to 98 percent”, says Jonathan Aitken, Lululemon's RFID program director. “The company's ability to get access to RFID-based inventory data and choose to sell goods online or in store

1. Evidence from case: The company has room for expansion by building more stores, increasing sales, expanding current stores, customer and employee satisfaction. According to Yoga In America, “36.7 million people in U.S practice yoga, 72% women” (Page C-101)

Factors such as the costs, social situation understanding the culture, competition, labor force, rules and regulations, targeted audience, availability of labor force etc needs to be considered in business expansion plans. Company has already factory setup in Lebanon and all products are exported from Lebanon. Problem mainly lies in the region instability to do business operations at times cause

An application into the case of Lincoln Electric shows that this company is correct in doing international expansions. Such actions are suitable for the market development strategy when the company wants to increase sales outside the domestic market. In addition, because of diversified markets during the global expansions, this company has customized products to fit for or developed new ones. Thus, it is changing towards diversification strategy. The both success and failures of Lincoln during the international expansions are helpful for other industries. Importantly, a thorough understanding of the local is a key for international expansions (E. Porter,

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

2. When a company grows in size and makes the decision to expand internationally, it is vital for its image among current and future customers to complete projects effectively and on time. Furthermore, it is also likely that such an expansion would entail the representation of more than one culture among the workforce. Indeed, while many employees will be relocated from the home country, a further proportion will be hired from the host country. To facilitate the relations and

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.