Lululemon Athletica Inc. is a premium designer and retailer of athletic apparel that has remained profitable over the years. The firm’s profitability and success is attributable to various factors, particularly its fashionable products. Lululemon stores have more visitors on a daily basis because of these products, knowledgeable store personnel, and store ambience (Gamble, Peteraf & Thompson, 2019). This paper discusses strategic management for Lululemon Athletica Inc in relation to its business strategy and practices.
Competitive Forces Confronting Lululemon
Even though Lululemon has remained profitable over the years, the company is faced by various competitive forces in the market for performance-based yoga and fitness apparel. Given the attractiveness of this market to entrepreneurs and start-ups, the threat of new entrants in Lululemon’s market is high. The firm also faces a high threat of substitutes from established brands like Nike, Adidas and Reebok. However, the bargaining power of buyers in the market is low because Lululemon’s rivals act independently while the bargaining power of suppliers in moderate because of the intense rivalry in this market. Gamble, Peteraf & Thompson (2019) state that this market is characterized by intense competition, especially from established brands.
Strategic Group Map of this Industry
Based on my strategic group map, the performance sports apparel industry is characterized by numerous growth and better positioning opportunities. These opportunities are attributable to increased demands for stylish and fashionable apparel items by female customers who account for a significant portion of the industry’s customer base. Lululemon is well positioned in this industry as it is in a similar strategic group as Nike, an established brand. The firm’s better positioning is also brought by its success and performance in cross-group rivalry.
Key Success Factors in this Market
In light of the intense rivalry in the performance-based yoga and fitness apparel, companies face the need to adopt suitable strategies to enhance their success. Based on the case study, the key...…increased costs. Insights from the analysis should be utilized to determine a new business strategy going into 2017.
Secondly, Lululemon should transform its business audience to incorporate a wider target audience to help improve profit margins. The company should consider incorporating young people and seniors as part of the target market, which would require using a different competitive approach other than the current focused differentiation strategy. In this case, the firm should adopt a brand differentiation strategy in order to reach a wider target market.
Third, Lululemon’s CEO and management should capitalize on its constant innovation to develop new products that reach the wider target market in order to deal with the threat of new entrants who copy its business model. Innovative product development initiatives would help ensure that the business model becomes sophisticated and avoid duplication by new entrants. Through this process, the company will create unique products that generate substantial competitive advantages over rivals in the market.
Reference…
Lululemon Firm Activities Relevance of Strategies in Firm Activities. Strategic Firm Activities at Lululemon Strategic Firm Activities at Lululemon In establishing and concretizing business operations in a market, it is vital to lay down the necessary strategies to determine the level of diversification of the products produced, their affordability and availability to customers. Some of these strategies worked upon are the corporate level, international, strategic alliance and cooperative strategies. The establishment of Lululemon Company
Lululemon Five I's Strategic Analysis Issue Identification Several stakeholders include employees and consumers have accused Lululemon of causing damage sales because the company does not know the strategy to handle the public relations. The situation further affected the company sales because of the recent public statement of Chip Wilson who went on Bloomberg TV blaming the "women bodies" for a decline in sales. (Bhasin, 2013 p 1). Undoubtedly, Wilson went to the
Lululemon Athletica, Inc. Company & Financial Analysis w/ Recommendations Part 1 Strategic Performance Lululemon Athletica, Inc. was founded in 1998 and is headquartered in Vancouver, Canada. Lululemon Athletica operates under the Textile—Apparel Clothing classification in the U.S. and its shares are publicly traded on the Nasdaq under the ticker symbol LULU. The company currently employs approximately 12500 people and has risen back from a 2013 controversy in which the yoga-wear apparel maker was
Lululemon Supply Analysis of Lululemon Porter's Five Forces Analysis of Lululemon Rival Companies PESTLE Analysis of Lululemo Core Competencies Analysis of Marketing Strategy of Lululemon Analysis of Company Management Risk Factors Financial Analysis Company History Lululemon Athletica Inc. which was founded in 1998 in the city of Vancouver by Chip Wilson is a specialist in the design and production of high-end technical clothing for athletes and yoga clothing. While operating primarily in the continents of North America and Australia, the company initially
We have put our recent efforts into creating a Restricted Substance program, and have begun mapping our Water & Carbon Footprint" (Website of LuLuLemon Athletica, 2012). 6. Brand personality The personality of the LuLuLemon brand is more so linked to yoga and the emotional perceptions related to yoga, rather than the actual apparel produced and sold by the company. And this brand is becoming more and more popular at both domestic
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