...would be the third option to consider, which is production somewhere where the company cannot directly oversee it. This is the cheapest option out of the 3, brings trade agreement incentives to the forefront and even provides more fabrics to the company’s disposal (which would be really good for producing higher quality garments), but the trade, culture and language barriers, depending on the country you go to could have an effect on how production goes, as well as the payment for the service, since many areas do not share the same currency. If I was advising Lululemon, I would tell them to do reshoring, not only due to the quality bump that would bring, as well as a better control of providing products consumers want, but due to the fact that it could help wash the bad taste Dennis Wilson left in women’s mouths. With the increased quality being pumped towards the garments and the good publicity it would give Lululemon, they could turn the page Mr. Wilson left off on and start a new chapter as a reborn company. ...
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...Lululemon is a yoga inspired Canadian athletic apparel company. It produces stylish athletic clothing and accessories for women, men and female youth. (Soni, 2014) Educated young women between the ages of 25-34 are Lululemon's primary target market. The company’s goal is to bring in customers who have a higher income to purchase their merchandise. These women work towards or have a balanced, healthy lifestyle between their careers, family, and the gym. (araccon, 2012) Lululemon's secondary target market would be male and female youth. The generation of the millennials is Lululemon's current target market. This gives Lululemon an advantage because millennials typically do not know how to save their money, they end up spending most of their money on activities, events or eating out. They are outspending the older generations on items that aren't necessary. They spend about 18.5% of there money on hobbies and clothing (Rapier, 2017). According to Elkins article, sixty-nine percent of millennials spend their money on clothes they don’t necessarily need (2017)....
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...Operation Management Lululemon Athletica April 9, 2014 The Lululemon Manifesto Lululemon Athletica is a yoga inspired athletic clothing company founded in 1998 by Chipl Wilson. This clothing company has become a retailing phenomenon in Canada with nearly 300 stores. With Lululemon tapping into the underserved women demographic it isn’t hard to see why people are willing to pay $100 for yoga pants or $60 for a tank top of good quality. This has helped drive sales up giving it a rocketing stock price and steadily increasing market share (1). All this has been done with little advertising but through offering quality products and the word of mouth of satisfied customers. Lululemon has since branched off to offer a wide variety of men’s clothing and running gear focusing more on people who are working out and running than just those women doing yoga. Lululemon is growing fast in Canadian cities and it’s not a surprise to see they have many stores in some of the best locations available. Here in Toronto Lululemon has a thriving store located in the heart of downtown in the Eaton Center shopping complex. This store is very impressive and helps attract a larger customer base by locating itself in an area where the amount of foot traffic is tremendous. The Eaton center is unlike other shopping centers, its a large building located in the heart of the largest city in Canada. Located between two subway stops and countless office and apartment buildings it really is one of a...
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...Case Study- lululemon Ethics and Social Responsibility Executive Summary Founded in 1998, lululemon has become an extremely successful company. Over the last 12 years of operation, its mission is to improve health, make a difference in all the communities it is located in, and provide guests with quality products to help them live healthy lives. Currently, lululemon still strives to make a difference in each community through the Community Legacies Program. Plans for expansion are also in effect, and its economic responsibilities are continually being met by the income generated each year. Social Responsibility is the backbone of lululemon. It presents many positive aspects for the company such as maintaining a positive image within society, however it may result in potential negative outcomes like possible profit loss. Strategically, lululemon uses non-traditional and unique marketing and business schemes. For example, lululemon relies on social activities for product promotion rather than typical ad campaigns such as print and/or television media. The next step for lululemon is to encourage people to bring families to the in-store yoga classes to better find a balance between work, family, and healthy living, together. Issue/Problem Statement lululemon athletica's main goal is to provide their guests with products that will help them live long and healthy lives. They ensure quality in their products, as well as recognize customer needs and adapt to meet those needs...
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...From a strategic planning perspective, the well-known Canadian fitness retailer Lululemon has a lot of factors to consider when laying the foundation for a five year plan. There are many opportunities as well as challenges that the company encounters from its external environments. Each of these is outlined in the following paragraphs and must be embraced in order for Lululemon to position itself strategically and successfully in the market. Economical environment: The economical environment that circles around Lululemon Athletica shows a strong revenue growth. In September 2012 Lululemon posted a 33% increase in revenue to $282.6-million (U.S.) and an increase of 15% in same-store sales (refer to figure 2). Along with that we can observe the company’s stable financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, net income growth and good cash flow from operations. Lululemon was pretty successful among many investors as it consistently raised quarterly profits and revenues in a struggling fitness retail industry (see figure 3). In reference to the article, “Lululemon athletica inc. Stock Quote & Summary Data”, unemployment rate made some effect on the company’s Gross Income as of in 2009 when the unemployment grew to the level of 8.5% company’s Gross Income was only 23.56% (see figure 1 and 2). But in 2011 when the unemployment growth was at a level of 7.2% company’s Gross Income became 77.04%. This also depicts...
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...Case study -2 Submitted by: Brinda Shah Khushali Salehkar Kethrina Piga. Five competitive forces Bargaining power of the suppliers * Bargaining power of the suppliers is low * As lulu lemon has 47 manufacturers for its fabric * High competitions among the suppliers which reduce the cost of product to maintain the position * They can easily switch from one supplier to another for their fabric Bargaining power of the buyers. * It is high * Customer has many option to switch to low cost products. * Easily switch to the other brand New entry barriers * It's moderate in industry * There are already many players in industry like Nike, under armour which mainly focus on different market which is outdoor game like football, basketball which is men’s wear. * Lulu lemon is basically for the women wear. There are many players who design for women like Lucy, athleta, Gap, Bebe but they for sports wear not for yoga appeal. Rivalry among sellers into the industry * Bigger brand has more influence into the customer * Brand image play bigger role customer buy product because of brand name * Continuously innovation and new technology updates product which is similar to the other brands * Number of stores effect to increase sales and capture the market among the industry Substitute products * Substitute products are high * Customer...
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...Lululemon has faced many challenges due to multiple factors, both internal and external. The key challenges lululemon faced were financial (sales per square foot drop, comp store sales decrease), human resource related (non-alignment of HR, cross-functional barriers in teamwork, no compromise, the intrusion of outsiders in upper management team), inventory (underperforming stores, bad locations with little or no demand, inventory cost escalation), and manufacturing (quality concerns). Though lululemon has set of faced cultural, strategic, financial, and infrastructure problems that arose from the prior leadership that are to be analyzed and solution to be recommended. Context In 2008 Christine Day took the position of the CEO. The objective for her at this position was to continue the growth trajectory by opening new stores and increasing sales to 1 billion. Even though the company was on the trajectory of growth and expansion with such results as: 1. Sales growth by 85% to $275 milion in 2007 2. Profits by 300% to 31 milion 3. Initial public offering $344 milion raised Though in 2008 lululemon became a publically traded $350mln company with close to 100 stores, 56 of which were in the US and nearly 3000 employees. Although Christine Day should have coped with the clusters of problems such as: 1. Financial decrease: 1) the average sales per square foot decrease in 2007 - 2008 (from $1,710 to $1,451) 2) a decrease in comp store sales from 24% to 3% ...
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...[name & position] * [more names & positions (if applicable)] * Company Executives * [name & position] * [name & position] * [more names & positions (if applicable)] Stakeholder Analysis * Employees * X * X * Customers * X * X * Suppliers * X * X * Investors * X * X * Government * X * X * Society * X * X Corporate Social Responsibility * Guarantee highest quality product for customers * Encourage people to lead a healthy and fun filled lifestyle by keeping exercise * lululemon set up a charitable giving program with deep rooted ties in communities * lululemon has operated the Community Legacies program which is believed to contributes to local communities. Ethics * lululemon lets customers choose the charities which they would like to support in the local area. * providing yoga classes for customers to encourage people to live healthier, longer and happier. * Free products are available to yoga teachers, fitness instructors and other related people Strengths and Weaknesses Strengths *...
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...Case #6 Back ground of Lululemon: They are a company that designs and retails athletic clothing. They produce fitness pants, shorts, tops and jackets for yoga , dance , running, and general fitness. Lululemon serves customers globally through on line and retail stores. They sell high quality product with high prices compare to other retail stores. They have market in North America, Canada, New Zealand and Australia. Chip Wilson open and design/ yoga studio in 1998 in Vancouver, British Columbia 1. What is the company vision/ mission and objective? * Vision: The store to be community hub where people could learn and discuss the physical aspects of healthy living form yoga and diet to running and cycling, plus the yoga related mental aspects of living powerful life of possibilities. (Not just selling the products to the customers. Their goals is to let the customers discuss about their physical activities to have a healthier life and wearing their product to exercise. ) * Mission : one of the providing people with the components for living a longer, healthier, and more life. (The purpose of its present business is distinctive community based strategy that enhances the brand and reinforces guest loyalty. The components giving to people help them exercise and become fit with stylish sport wear from Lululemon) * Objective: Assembled a management team with a mix of retail , design , operations, product sourcing, and marketing experience form such leading apparel...
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...Will Lululemon Athletica Become the Next Top Brand? Christopher Boyken MGT 4013 April 24, 2012 Executive Summary Lululemon was founded by Chip Wilson in 1998. The company started out in Canada with several stores where the company eventually grew to 165 stores in Canada, United States, Australia and China. The industry in which Lululemon competes in is fitness apparel, with competitors such as Nike, Adidas, Under Armour, and Champion. The fitness apparel industry is very attractive with an ever growing increase in the amount of individuals choosing to lead a healthier life. Lululemon holds a good position in this industry and have room to grow in the future to gain an advantage over its competitors. The way Lululemon has been executing its strategy is a key factor to how well the company has been performing the past years. Although the company’s performance has been outstanding recently, there is a strategic issue in which Lululemon should try to deal with, and this is advertising. There is a couple of action plans that can be implemented and help fix the strategic issue Lululemon faces. Lululemon is a growing company that has a promising future and will continue to attract numerous investors. Table of Contents Introduction (Needs and Purposes) 4 Strategic Posture 5 Brief History 5 Core Values 5 Mission Statement 9 Vision Statement 9 Business Definition 10 Broad Goals 12 Smart Objectives 14 Key Functional...
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...Originally, Lululemon exclusively only sold women’s yoga attire. In 2014 they shocked the market by launching its first ever men's collection. Surprisingly today the men's collection takes up about 25% of there sales (Schlossberg, 2016). They also branched out into swimwear recently in 2014. Swimwear is becoming increasingly popular and many brands have reached into that market as well. Lululemon tapped in right at the peak of the swimsuit popularity. Since the yoga and surf lifestyle goes hand and hand in many cases they wanted to catch up on the surfing trends. Swimwear is how they easily could penetrate this market as well as they have the yoga one. Looking into surfer life was a great business move by them. They did their research on what...
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...U.S. division, and some will have to seek financial help to get through the time crunch, experts say — but it’s unlikely any of them will want to stop doing business with the world’s biggest mass merchant. Wal-Mart Stores Inc., the parent company of retail chain Walmart Canada, announced the measures in June and a report last week suggested some U.S. suppliers would seek legal recourse against what they deem to be unfair measures by the retailer. Wal-Mart told 10,000 suppliers to its U.S. stores about the fees and other changes to vendor agreements in mid-June, according to a Bloomberg report. The changes included asking the vendors for fees to use its distribution centres, warehouses and to secure shelf space in new stores and, in some cases, extended the amount of time Wal-Mart would have to pay suppliers. It isn’t going to always be easy for our suppliers. Change isn’t easy Several vendors are hiring lawyers in a bid to reverse or amend the terms, Bloomberg News reported, and some hope to use...
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...1) Porter 5 Force Model of Lululemon: Bargaining Power of Suppliers | Suppliers have low bargaining power since Lululemon gets their fabrics from many suppliers. | Bargaining Power of Buyers | Lululemon consumers have high bargaining power. Since alternative brands are deemed cheaper, consumers switching costs would be low. | Threat of New Entrants | Threat of new entrants are moderate, but growing as more companies are outsourcing their fabrics to manufacturers in other countries that allow them a lower price mark for consumers. Plus online retailing is growing making these company sport wears more easily accessible. | Competition Level | Competition level is very high since companies in the sports apparel industry are constantly repositioning their brand in order to obtain a greater share of the market. | Threat of Substitutes | The threat of substitute is low since not many of the alternatives match in quality. | Based on the Porter 5 force model, the competitive forces are moderate in the yoga and fitness apparel market. There are many businesses in the industry, high customer bargaining power and moderate threats of new entrants. However, there aren’t any comparable substitutes when it comes to their quality. 2) I believe Lululemon is well positioned based on their effective strategies. From training and educating all of their employees to on Lululemon products and Lululemon’s core values, to having Yoga instructors as brand ambassadors, to having design...
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...Case Analysis #1 Problem Essay Lululemon Athletica Inc Samuel Ellison Presented for: Professor Kannangara Sunday, March 6th, 2016 BUSI4003 Introduction Lululemon Athletica Inc., founded in 1998 in Vancouver by Chip Wilson, is a company which designs and produces high-end yoga and technical athletic clothing. They have operated primarily in North America and Australia; their initial target customer was an educated woman who lives an active and healthy lifestyle. They opened their first store in Kitsilano in BC in November, 2000. The first store was intended to act as a community hub where people could learn and discuss about the physical aspects and mental aspects of a healthy life, in addition to selling yoga clothing. However, the company started to realize the difficulties in using their store as a community hub and retail store as their store became very busy. This caused them to focus more on training their staff. One of their goals was to train their people so well that they could positively influence their families, communities and customers. Lululemon’s vision was to elevate the world from mediocrity to greatness. To achieve this, they partnered with the right people and developed three different kinds of strategic sales programs in hope of spreading yoga love and increasing the level of health within their communities. 2013 has been a challenging year for Lululemon due to production glitches and management uncertainty. In March 2013, Lululemon recalled...
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...MKT 302A Final Project – Lululemon Yoga Pants Marketing Analysis University of Phoenix School of Business March 29, 2013 Table of Contents Executive Summary 3 Introduction 3 Objectives 3 Target Markets 5 Situational Analysis 5 Strengths 5 Weaknesses 6 Opportunities 6 Threats 7 Positioning 9 Marketing Mix 9 Product 9 Pricing 11 Place (distribution) 12 Promotion 12 Conclusion 13 Appendix 14 Appendix A 14 Appendix B 15 Comparisons 15 Appendix C 15 Appendix D 16 Appendix E 16 Executive Summary/Introduction Lululemon is a successful company that produces, markets, and sells high end yoga, running and athletic casual wear for women and men. Lululemon was founded in 1998 by a yoga enthusiast, Chip Wilson, who saw a need for high end yoga apparel. Mr. Wilson had prior surf, skate, and snowboard marketing and lifestyle experience. At the time Wilson began experimenting with yoga wear, most patrons of the practice worn cotton clothing that did not remove sweat or allow for maximum flexibility (Lululemon, 2014). Wilson’s first store was in the beach city of Vancouver, BC in 2000. The store doubled as a yoga studio at night. One of the early product promotion and research ideas was to offer free yoga wear to instructors for their feedback. With this Lululemon was born. Lululemon has a brief but effective mission statement: Creating component for people to live longer, healthier, fun lives (Lululemon, 2014). Gaining popularity through...
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