lululemon case analysis

lululemon case analysis

Lululemon Case Anaylsis
Cierra Merritt

Introduction: The following is a situation analysis for Lululemon Athletica,Inc.. Key issues are noted and recommendations are provided.

Current Situation: Lululemon is a publically traded international company that is based in Vancouver. Lululemon has over 100 locations worldwide and is valued over $200 million dollars. Chip Wilson founded the company in 1998. Lululemon creates Yoga products with innovative fabrics that help the clothing fit and feel better which helps women improve their fitness goals. Chip Wilson started the company with the idea that his products would help "improve the level of health within a community."

Lululemon’s mission statement is creating components to help people live longer, healthier, and fun filled lives. Lululemon focuses on ensuring that their store experiences are one of a kind and that their products are of the highest quality. Lululemon educates their staff on effective and creative ways to create a unique experience in each individual store. Lululemon Manifesto: It is a lifestyle!!! The pursuit of happiness is the source of unhappiness. Dance, sing, floss, and travel. Practice yoga so you can remain active in physical sports as you age.

Competitive Forces: Competition from rival sellers – vigorous competition from multiple large companies such as Nike, Under Armour , Adidas, Reebok, in addition to multiple smaller ones such as Lorna Jane, Lole, and Gap Athleta. Competition from potential new entrants to industry – Vary: low from new players due to time and funds, high from current apparel designers and retailers like Gap. Competition from producers of substitute products – shorts, pants, or other clothing not intended for athletic use. Supplier bargaining power – in introductory phase, high bargaining power due to increased investment and desire to work with leading fabric suppliers; 90% of apparel production in Asia but will use US/Canada production facilities as...

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