Lululemon Case Study

Lululemon Case Study

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Read the Lululemon Athletica case in your textbook. Then, review its website by clicking on this link. The link opens in a new window.

1. Using the textbook information and its website, http://shop.lululemon.com/home.jsp, provide a brief overview of the Lululemon Athletica. Who are they? What is their mission statement? What do they sell? What is their manifesto? (10 points)

Mission statement: Creating for people to live longer, healthier, fun lives. Lululemon creates and sells technical yoga and run clothes.

Manifesto: We are passionate about sweating every day and we want the world to know it.

Breathing deeply, drinking water and getting outside also top the list of things we can’t live

without. Get to know our manifesto and learn a little more about what lights our fire.

(http://www.lululemon.com/about/manifesto)

2. What are the key elements of Lululemon’s strategy? (10 points)

3. How strong are the five-forces confronting Lululemon in the market performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. Use this website from Mindtools . Scroll down to see an example of how I want you to complete the template.  (20 points)

Threat of New Entrants (weak/moderate/strong? force?

 list them here

 list them here

Competitive Rivalry (weak/moderate/strong? force?

 list them here

 list them here

Buyer Power (weak/moderate/strong? force?

 list them here

 list them here

Threat of Substitution (weak/moderate/strong? force?

BBM 402 STRATEGIC MANAGEMENT 2

 list them here

 list them here

Supplier Power (weak/moderate/strong? force?

 list them here

 list them here

4. What does your strategic group map of the performance sports apparel industry look like? Is

Lululemon well positioned? Why or why not? To answer this question, watch this short

video on strategic group mapping. Then, use WORD, PPT or EXCEL to create your map.

Attach it via this assignment link. (20 points)

5. What do you see as the key success factors in the market for performance-based yoga and

fitness apparel? (10 points)

6. Using PESTEL analysis, examine Lululemon’s external environment. (10 points)

7. What are the driving forces of this industry? Assess whether the individual or collective

impact of the driving forces will be to increase or decrease market demand, make

competition more or less intense, and lead to higher or lower industry profitability. (10

points)

8. What 3-4 priority issues does management need to address? What recommendations would you make to address these 3-4 issues? (10 points)

 

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