Lululemon Case Study Essay example - 780 Words

1. 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. The PEST analysis shows a tax reducing police have been introduced along with an Economic Action Plan by government in January 2009 which can reduce tax burden and increase purchasing power. However, Canadian economy have been significantly affected by the world economic crisis occurred at 2008. On the anther hand, People have started to pay more and more attention on their health since high total cholesterol and triglycerides levels increase, and also, the introduction of women-oriented gyms has also increased the customer base by encouraging more†¦show more content†¦The clothes not only can be worn as functional apparel in the gym, but also can be worn in the street, and thats why people love it. 2. The resource Lululemon has can be divided into three categories: 1) Tangible resource Retail stores which can be the part of distribution network, and also can be the place that free yoga classes are provided 2) Intangible resource Lululemon`s value of building a healthy lifestyle 3) Human Resource Fitness instructors (who driving the brand awareness through word of mouth, and also are the clothes model for Lululemon) Employees (become educator, and also Lululemon ambassadors) The capabilities Lululemon has are: (1) Products design (innovative and also fashion-conscious) (2) Service ( free yoga classes) (3) Marketing and sales ( heavily rely on word-of mouth) (4) Human resource management ( make employees as ambassadors, and extend philosophy about employee`s lifestyle) 3. Lululemon has differentiation advantage 1) Promotion and advertising Instead of conducting traditional marketing which has huge marketing budgets, Lululemon heavily relays on word of mouth. Moreover, the grassroots branding strategy make them differentiated from their competitors. Lululemon providing free class and made instructors be their models which become a very successful way to promote their products. 2) Service Lululemon sells women apparels with intimate boutique-style stores forShow MoreRelatedLululemon Case Study2260 Words   |  10 PagesAssignment for Course: MGT 5090 – Entrepreneurial and Strategic Thinking Submitted to: Dr. Regina A. Greenwood Submitted by: Anais Carrasco Date of Submission: May 30th, 2013 Title of Assignment: CASE 4 – Lululemon Athletica Inc. CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I usedRead MoreLululemon Case Study1306 Words   |  6 PagesAssignment 1 Case Study Lululemon 1. Considering the five forces of competition and how they direct the profit potential for a given industry, discuss how the forces help explain Lululemon’s performance. 2. The resource-based model assumes that each organization is a collection of resources and capabilities, which provide the basis for a firm‘s strategy and its primary source of above-average returns. Use this this model to outline Lululemon‘s core competencies and how their capabilitiesRead MoreLululemon Case Study1609 Words   |  7 PagesCase Study- lululemon Ethics and Social Responsibility Executive Summary Founded in 1998, lululemon has become an extremely successful company. Over the last 12 years of operation, its mission is to improve health, make a difference in all the communities it is located in, and provide guests with quality products to help them live healthy lives. Currently, lululemon still strives to make a difference in each community through the Community Legacies Program. Plans for expansion are also in effectRead MoreLululemon Case Study1094 Words   |  5 Pagesfood chains, which appeal to the youth, such as Chipotle and offer take-out delivery. Personally, I see Amazon capturing the food delivery service in the near future. However, some analysts such as Derrick, believe Amazon’s next step is to acquire Lululemon. All of this suggestion is highly probable. In the next century, it would not be surprising to see if Amazon was able to compete for all of these suggestions. Costco Costco’s channel management is certainly one of the reasons why the organizationRead MoreLululemon Case Study Essay947 Words   |  4 PagesLULULEMON CASE STUDY FEBURARY 9, 2013 Question # 1 SWOT Strengths: niche market leader, product technology, customer focused, quality, innovation, brand, corporate social responsibility, and sustainability Weaknesses: perceived female focus, Local centricity, price point, inventory, perceived as yoga only, distribution, and access to stores Opportunities: Product diversification, line expansion, accessories, leveraging perceived expertise, category leader, and expert Threats: BuyoutRead MoreLULULEMON Ethical BehaviourSocial Responsibility1467 Words   |  6 Pagesï » ¿ETHICAL BEHAVIOUR AND SOCIAL RESPONSIBILITY lululemon athletica There are many ways to measure the success of a business. A financial analysis of lululemon athletica, a Vancouver-based company, would show that it is valued at more than $220 million. Would looking at an improved level of health in its community be another way to measure the success of this company? lululemon athletica founder Chip Wilson would welcome your investigation of the improved health and well-being of people in the communitiesRead MoreThe Problem Of Defective Yoga Pants1297 Words   |  6 PagesBackground: This case study analysis will define the problem of defective yoga pants products, corporate corruption, and the growing media conflict of â€Å"weigh shaming† in the sizes-2-12 limits on Lululemon yoga pants. Lululemon has seen a fall in the price of stock market shares due to these major defects of yoga pants products and corporate unethical decision making processes. The Problem: Lululemon has a growing reputation for making defective yoga pants (due to sheerness and â€Å"see-through†)Read MoreLululemon Athletica Inc. Case Analysis1506 Words   |  7 PagesThis 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 â€Å"Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrateRead MoreQuality And Quality Of Product Quality1268 Words   |  6 Pages†¨In this report I will be focusing on Quality Control, Quality Assurance, Product Specifications and why they are all so important in terms of product quality. I will also look at an instance of product q uality failure, in this particular example Lululemon had to recall certain products because they had failed to adequately test the quality of those products. I will identify exactly what happened, why it happened and what was done to rectify the situation. †¨ 2.0 Background Information†¨Ã¢â‚¬ ¨2.1 QualityRead MoreLululemon2462 Words   |  10 PagesIntroduction 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