Lululemon Athletica Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Background

Lululemon Athletica is founded by Dennis Chip Wilson in 1998 and located in Vancouver, Canada that provides the highest quality athletic products to satisfy the needs of the target customers. Lululemon Athletica has expanded its market effectively in the local areas and successfully grew there. After getting success nationwide and in some global locations, the company wants to expand its market further in different countries in order to enhance the growth and profitability of the company.

lululemon case solution

But there were several internal and external challenges that Lululemon Athletica have in order to further expand its product offerings across the world. As, the rivalry in the market is increasing at the fastest pace with the many companies having the similar product offerings. The company need to analyze several influences that impact their future growth and size of the Lululemon Athletica.

Issues

Following are the issues faced by the company:

Can the company maintain the effective and strong relationships with the communities as it did historically on which its past success relied with the further expansion in term of growth and size?
Another issue of the company is related to its international growth. Will the company able to continue its success around the globe with the significant cultural differences?

Analysis

Lululemon Athletica provides high quality athletic yoga apparel products to its customers at a premium price. The Lululemon has the detailed understanding and knowledge of its target market is an important resource for the company. Furthermore, each employee at the Lululemon Athletica considers valuable resource as the employee development is an important component of the company’s strategy.

The company has focused its strategies on providing the quality products to its target audience rather than selling the quantity. In addition to this, the company spends a lot of money as well as effort into the training of their store employees. Moreover, its close relationships with its communities and customers as well as it’s an inimitable culture are the main sources of strategic competitiveness that gives it an advantage over its rival. The vision of the company plays a significant role in achieving the objectives that result in the growth and success of the Lululemon Athletica. Also, improve the ability of the business to provide quality products that are focused to address the preferences and needs of customers.

The competitive rivalry in the industry is high as there are numerous businesses that are challenging as well as the competition in the industry is growinghasitly. This increase in the competition can create many difficulties for the company to expand its market both internationally and nationally. Whereas, the threat of substitute is moderate for the company as there are not any major alternative available is the market that impacts the profitability of the company.

Additionally, the threat for new entrants in the industry is very high and this may impact the successful affords of the Lululemon Athletica due to the ease of market entry that opened the doors for many firms. Furthermore, these new entrants bring new capabilities that may reduce the profitability of the Lululemon Athletica. The bargaining power of the buyers is high as there many similar products available in the industry by different brands and they have multiple choice to purchase the products. The bargaining power of the suppliers is high as the companies in the industry heavily depend upon the supplier.

The competition in the industry is growing continuously creating threats for the company to survive and gain the sustainable competitive advantage over its rivals in the industry. In addition, this increase in the competition may adversely impact the success of the Lululemon Athletica. The company is prepared for the competitive changes as the Lululemon Athletica continuously evaluate its external environment in order to identify the new potential competitors as well as new trends in the industry.

This will help the company effectively compete and remain profitable in the industry. But in the situation, if the company is not prepared for the competitive changes, then it will reduce the performance and profitability of the company. Furthermore, may impact the productivity and company’s ability to target larger potential customers.

As, the company is growing largely internationally day by day, external environment impact the activities and the operations of the company greatly. The change in the global economy have impacted the sales of the company as the customers are price sensitive and there is a decrease in the spending of the customers.

Moreover, the uncertainties in the political as well as the legal conditions also affect the performance of the Lululemon Athletica. These political factors involve international trade laws and tax regulations.

The technological development play a vital role in the operations and development of the company as many of the product features are technology Driven. The company’s experience supports the resource-based and industrial organization (I/O) model of above-average returns as the company has unique capabilitie................

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