Lululemon Athletica Inc. Harvard Case Solution & Analysis

Lululemon Athletica Inc. Case Solution

Introduction

Lululemon Athletica Inc. has been operating in the clothing industry efficiently. The company was incorporated on November 21, 2005. Lululemon Athletica Inc. is a designer as well as a retailer of technical athletic wear and they primarily and mainly operate in Australia and North America. The organization believes to that the consumers of the clothing line associate their brand technical apparel products with a touch of innovation. The yoga-inspired apparel and clothing line of the company is marketed under the LululemonAthletica and Ivivva Athletica brand names.The products of LululemonAthletica Inc. are designed and tailored by the company to offer performance, fit and comfort to the customers while integrating both major aspects of apparel products that are function and style.

lululemon case solution

lululemon case solution

The company has mainly focused on distinctly positioning itself through providing a combination of performance and style,not to only meet the needs and expectations of the female athletes but to also appeal to the consumer who desire casual wear for everyday use that consistently matches with active lifestyles and living standards. Lululemon Athletica Inc. offers a comprehensive line of apparel and accessories, compromising of fitness pants, tops, shorts and jackets that specifically designed for athletic hobbies and interest like yoga, jogging or running, general fitness or even dance-inspired apparel for female youth.
Lululemon Athletica Inc. has its stores located in a number of countries like Canada, United States, New Zealand and Australia. The company has been following a vertical retail strategy, itbelieves that the strategy enables and allows itto interact more directly with customers resulting in an increased level of gained information from the customers. Lululemon Athletica Inc. strongly values its customers and believes that the customers of the company are the driving force of the company and have the power and greater control over the brand.

PEST ANALYSIS:

Political Factors-MEDIUM

The technologies of Lululemon Athletica Inc. which it used to manufacture it fabrics are not patented, neither is the fabric used by the company. These elements can easily be imitated by it imitators.

Economic Factors-HIGH

The economic conditions have been steadily growing and improving. Economic trends can crucially affect the organization as it offers discretionary goods to the market and they can be affected in a number of ways.

Social Factors-HIGH

Spending over workout clothing has drastically increased as compared to whereas other clothing lines have comparatively lower growing trends. The people are now shifting towards wearing work out clothing other than athletic activities as well.

Technological Factors-HIGH

The current environment of the industry is experiencing a major advancement with respect to the technology. The competition amongst the rivals is intensely competitive. Competitors have increased their investments in the R&D department to increase the level of their offerings.

PORTER’S FIVE FORCES MODEL

Bargaining Power of Suppliers-LOW

The materials required by the companies are not scarce and are available to them by a number of suppliers, giving the company various choices. Increased choices for the company have decreased the power of the suppliers.

Bargaining Power of the Buyers-HIGH

If the buyers are not satisfied with the products of the company they can easily switch to another brand. Low switching cost has resulted in increasing the power of the buyers.

Threat of New Entrants-MODERATE

Building a new brand in an industry which already has an intense competition is very difficult, however, switching costs are very low resulting in a moderate threat from the new entrants..........................

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