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Business Strategy Lululemon

In: Business and Management

Submitted By dcarlisle80
Words 547
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Dawn M Carlisle
Business Policy and Strategy
Lululemon Case

Lululemon Case Analysis

For Lululemon, this particular sports performance apparel industry has a few growing pains as well as huge success. In analyzing their company strategy, they have a great reputation for the quality of their clothing, they have an innovative product that is a best seller among their clients. Many women and men today enjoy Yoga and want to be comfortable in the clothing when working out. These have been their strengths in their ability to have made high profits. With strengths comes weaknesses. Lululemon has a hard time with their brand recognition in other markets. They have been a huge success in Canada, but once brought to other international markets, they are definitely competing with bigger companies who may sell a similar product. This would be an opportunity as they can tap into newer markets promoting the brand. Lululemon has a strong risk of threat from other competitors via online. Since we live in a digital world, it’s easy for businesses to compete using the internet or e-commerce. Lululemon also has the threat of new entrants to worry about. By low switching costs, they can increase the need for substitutes, but they can’t change the latest fashion trends, season, etc. Substitutes are a threat but minimal. Not a lot of competitors such as Nike or Reebok can fulfill this clothing need. However, it also gives buyers more power as they play a huge role in competitive behavior.

Changes in cost, economy, lifestyles, increased globalization, and technological change are all driving forces that can affect the industry. With the economy not doing as well as it should, some consumers may not be purchasing as much as before. The company would have to lower prices to get those customers back. Also with other competitors, Lululemon needs to make sure that they are...

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