Lululemon Business Strategy Paper

In: Business and Management

Submitted By logey34
Words 15691
Pages 63
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 Strategies 16 Key Organizational Structure 19 Analysis of Strategic Posture 20 Conclusions/Recommendations 21 Macroenvironmental Analysis 21 Economic 22 Political 22 Technological 23 Societal 23 Conclusion 24 Industry Analysis 24 Dominant Economic Characteristics 24 Five Forces Model 26 Driving Forces 30 Strategic Group Map 33…...

Similar Documents

Business Strategy Paper

...|differences between customers who approve |demographic |surveys and face-to-face | | |of TeraTech’s services and those who do |characteristics of the |interviews in order to find out| | |not. By using the information it has |population and its values.|what population of women are | | |acquired, the company can focus corrective|Changes in these forces |interested in Curves but have | | |action, future product development, and |can have a dramatic impact|not yet joined. The corporate | | |marketing on the segment that is most at |on marketing strategy” |office then creates an | | |risk. Based on the research, customers |(Kerin, Hartley, Berkowitz|advertising campaign geared to | | |with the least satisfaction have been with|& Rudelius, 2005, p. 74). |obtain the largest market share| | |the firm for more than 3 years and are | |of this demographic along with | | |firms where the sales and customer service| |usable marketing materials for | | |departments are primary users of the CRM | |local clubs through which we | | ......

Words: 1303 - Pages: 6

Business Strategy Paper Best Buy

...will access their target market. It is also critical that Best Buy implements a strong supply chain and inventory control system. The Distribution is just as important from the manufacturer to the retail location, as is the retail location to the consumer distribution channel. 2. Implementing an online store as a substitute to their retail locations 3. Store Design The design and layout of the store will be a description of the Best Buy Brand. As this brand is new to the Australian market, the design of the store will be the most effective marketing tool that Best Buy has at their disposal. 4. Creating strategic alliances As it is a new business to Australia, the choice of whom, the business aligns themselves with, will determine how the Australian consumer perceives them. Target Market The target market strategy that is being recommended for Best Buy to use when entering the Australian market place is a broad-spectrum target market. The target market can be described as singles and families aged between 20 and 55 years old. They are the middle-class, living primarily in urban areas. This group is moderately technologically savvy and they want specialized electrical product knowledge and service at a competitive price. They also want a wide range of products all in one location. This group’s path to purchase is primarily affected by convenience, service and price. They want an enjoyable shopping experience. Due to their savvy nature, they will find a......

Words: 3877 - Pages: 16

Term Paper on Business Strategy of a Mnc Pharma in Bangladesh

...Business Strategy of Sandoz Bangladesh Term Paper on Business Strategy of Sandoz Bangladesh Submitted to Professor A K M Saiful Majid Course Instructor, Business Strategy (W650) Submitted by M Nakibur Rahman, Batch: 43D, Roll# 55 Wazedur Rahman, Batch: 46D, Roll# 143 Institute of Business Administration University of Dhaka 13 June 2013 Dr. A K M Saiful Majid Professor Institute of Business Administration University of Dhaka Dear Sir: We are pleased to submit our term paper on “Business Strategy of Sandoz Bangladesh” as per your kind guidance and instructions to fulfill the course requirements. Working for the paper had been of great learning experience for us. This project gave us the opportunity to analyze a real life sector that we could relate with the theoretical issues studied in the Business Strategy course. We are open to your queries and feedback regarding this report. Yours truly, Mohammad Nakibur Rahman Roll: 55, Batch: 43D Wazedur Rahman Roll: 143, Batch: 46D i Table of Contents Executive Summary ....................................................................... iii 1. Introduction ............................................................................. 1 1.1 1.2 Objective ................................................................................................................................. 1 Scope .............................................................................................................

Words: 3508 - Pages: 15

Lululemon

... BCG Analysis Page 10 3. Cash Flow Analysis Page 11 4. LuluLemon Accounting Policies Overview Page 12 5. Competition Accounting Policies 5.1 Bebe Sport Accounting Policies Page 14 5.2 Under Armour Accounting Policies Page 15 6. LuluLemon Selected Financial Information 6.1 LuluLemon 2011 Selected Financial Info Page 16 6.2 LuluLemon 2010 Selected Financial Info Page 18 6.3 LuluLemon 2009 Selected Financial Info Page 20 7. Financial Analysis 7.1 Accounting Ratios Page 22 7.2 Additional Financial Information Page 28 Executive Summary Sporting apparel is a huge and expanding global market. Like other apparel categories, the fashion of the sport apparel is changing and the actual business model is constantly evolving. The number of female sport practioners, Yoga practitioners in particular, is growing. LuluLemon is a well established brand focusing on the female athlete apparel. Considering the market potential in emerging countries and......

Words: 4162 - Pages: 17

Business Strategy Lululemon

...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......

Words: 547 - Pages: 3

Lululemon

...Lululemon Athletica Inc. Business Plan Lululemon Athletica Inc. Vancouver, BC Executive Summary Mission statement “Creating components for people to live longer, healthier, fun lives.” This Business Plan is to explain Lululemon’s strategies, strategic issues and certain problems (if any) within this company. Focus differentiation is their number one strategy to stay afloat with all this tough competition. High end market is what Lululemon needs to stay focused on. In this report, we list out a few different strategies they need to take, but this is the most important to sustain a competitive advantage. Lululemon will use its marketing tactics to help focus and differentiate themselves from their competitors. With net new companies joining into the market and also current competitors, Lululemon needs to address pertent issues pertaining to its current performace, strategic moves and certain tactics to integrate a strategic campaign. To gain a better insight, the following needs to be addressed: 1. Analysis of current performance and financial situation 2. Understanding of internal and external factors 3. Examine the strategic objectives There are many challenges and opporutnities within this industry. With the right strategies and marketing techniques, Lululemon will be profitable and sustain a competitive advantage. Introduction Overview of the industry Dennis "Chip" Wilson founded Lululemon Athletica (also known...

Words: 4249 - Pages: 17

Wwe Business Management Strategy Paper

...| Ethics in Business Strategy | [Type the document subtitle] | | Introduction In formulating a business strategy, one must be able to utilize the many tools that reside within the tool bag of the manager. The business manager will need to harness the various tools from many disciplines of a MBA curriculum. The company’s resources and capabilities come in many shapes and form. For example, a company’s talent pool, intellectual property, formula for building a product and most importantly the consumers can be viewed as a resource or its ability to fend off a competitor. The company’s resources and capabilities will determine how best to match up against a competitor and how to respond to threats effectively. The strategic goal of getting a competitive advantage is a plan that will call upon many tools from various disciplines most commonly taught in business schools. Stacking Up with the Industry Integrating Corporate Social Responsibility (CSR) into the business model can be viewed as a business strategy in the sports entertainment industry, by shedding the perception of promoting violence and moving towards promoting family friendly content. CSR is a vehicle that can be used to promote social change and acceptance using a company as a “voice” which would carry more weight. Companies with the ability to recognize profound social change and anticipate how they affect operations have proven to be survivors” (Lawrence & Weber, 2011) – this helps a......

Words: 2968 - Pages: 12

Business Strategy

...Business Strategy at the Organizational Level The purpose of this paper is to discuss the development of business strategy at the organizational level; the definition of this focus is the strategy that drives missions, goals and competitiveness at the policy level. Preliminary findings indicated that in the current organizational environment of market globalization, rapid technological change, shortened product life cycles, and increasingly aggressive competitors, dramatic changes are occurring with respect to the way work is done – these elements dictate the way that goals and strategies are assessed, determined and implemented. I spoke with Mr. Joseph Black, CEO of the company for which I work; we are a financial consulting business that also provides accounting and business strategies for corporate and high income individuals. Mr. Black stated that the partners realized early on that they could not provide all the information that a business would need, and so determined to provide consultation and services though strategic alliances with individuals and entities that could provide a mix of services. My company began as a bookkeeping and accounting firm, and then decided to expand its core competencies, based on the knowledge they obtain from working with the clients and the ability to recognize the clients’ financial needs. For example, the accountant works with a company and is very aware of, and familiar with, the way the company does business, its plans for......

Words: 824 - Pages: 4

Business Strategy

...analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms? 2. What do the results say about how firms in this industry can deliver strong financial returns in different ways? 2. What are the key sources of Trader Joe’s competitive advantage? 3. What are the main threats to Trader Joe’s competitive advantage? Is their advantage sustainable? 4. How would you modify Trader Joe’s strategy moving forward? What are the key sources of Trader Joe’s competitive advantage? Trader Joe’s Competitive Advantage Their competitive advantage stems not from this “less is more” approach to strategy but from how they execute it. Dan Bane explained, “It’s kind of a loose-tight company. We’re very controlling and tight about cost structure and processes; we’re very loose about how we want the stores to run. We just try to do a good job of what we do, trying to find the next Charles Shaw and trying to keep our hustling going on the buying side.”8 He noted that they don’t carry products like flour, toilet paper, or Coke because these are commodities for which Trader Joe’s can’t get a better price or offer unique value. Bane also acknowledged that by routinely turning over 20 percent of their slower-moving products, customers sometimes were upset and he frequently received letters asking why a favorite product had been discontinued. To execute their strategy, Trader Joe’s relies on seven core values that Bane......

Words: 1679 - Pages: 7

Business Strategy

...at Urbana-Champaign College of Business Department of Business Administration BADM 449: STRATEGIC MANAGEMENT / BUSINESS POLICY (FALL 2015) Section J: Tuesday – Thursday 11:00 A.M. – 12:20 P.M. BIF 2041 Name: Shinjinee Chattopadhyay Visting Assistant Professor Office: 465 Wohlers Hall Office Hours: Tuesday, 2-3.20 pm (Or by appointment) Office Phone: 217-300-1033 Email: schattop@illinois.edu Website: Maintained on Illinois Compass 2g INTRODUCTION AND COURSE OBJECTIVES Strategic management deals with decisions that fundamentally influence the direction of the organization and effective implementation of the direction chosen. Strategic management addresses the organizational structure, resources & capabilities, and the strategic positioning of the organization to create, capture, and sustain competitive advantage. In addition to economic value creation, management also must make decisions concerning the distribution of this economic value across stakeholders. In BADM 449, you will develop your skills at: • Understanding how firms create, capture, and sustain competitive advantage; • Analyzing strategic business situations and formulating strategy; and • Implementing strategy and organizing the firm for strategic success. Success ultimately depends not only on the soundness of the formulated strategy, but also on effective implementation through appropriate organizational choices. This capstone business course focuses on strategic......

Words: 5629 - Pages: 23

Business Strategy

...gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades | Grade Descriptor | Indicative characteristics | Contextualisation | M1 Identify and apply strategies to find appropriate solutions, by using complex problems with more than one variable have been explored | Effective judgements have been made.An effective approach to study and research have been applied | M1: To achieve M1 you need to identify some of the types of benchmarking strategies used by organisations and analyse at least four of the stages used in Benchmarking, state some of the advantages of using the technique OR Identify and analyse the 7 elements in McKinsey’s model (Task1) | M2 Select/design and apply appropriate methods/techniques, by using a range of sources of information | Appropriate learning methods/techniques have been applied | M2: To achieve M2 you need to compare, strategies and demonstrate how they (PESTEL and Porter’s Five Forces ) influence your chosen organisation or as (Task2) | M3 Present and communicate appropriate findings by using an appropriate structure and approach | Coherent, logical development of principle/concepts for the intended audience. | M3: To achieve M3 Present or communicate your choice or chosen strategy using any structured method or approach. (Task 2) | D1 Use critical reflection to evaluate own work and justify valid conclusion | Conclusions have been arrived at through synthesis of ideas and......

Words: 4266 - Pages: 18

Lululemon

...Lululemon Athletica Inc. Course: | BUSI 4003 - Business Case Analysis | Instructor: | Jana Comeau | Date: | March 6, 2016 | By: | \| Lululemon Athletica Inc. was founded by Chip Wilson in Vancouver BC in 1998. The brand quickly became popular and by 2012 the company had global revenues of $1 billion (Lululemon Athletica, 2016). In November of 2013, Lululemon found itself at the centre of a firestorm after a series of negative events seriously ruptured the company’s reputation (Huang, 2014). The problems began in March, 2013 when the company issued a recall of its popular black Luon yoga pants from store shelves because the material used to make them was too sheer (The Canadian Press, 2013). Problems with the recall surfaced shortly after the announcement when customers complained about the return process. In November, 2013 Chip Wilson tried to explain the recall by saying “some women’s bodies just don’t work for it.” Public relations took another hit when stores in Maryland and Dallas posted inappropriate promotional signs which resulted in more negative media coverage (Huang, 2014). Lululemon Athletica Inc. faced multiple public relations issues in 2013 that were negatively impacting their sales. The company was conducting damage control on multiple fronts in an effort to regain credibility as a trusted brand who offers quality products. Lululemon needed to create a strategy to repair the company’s self-inflicted credibility damage (Huang, 2014). Lululemon......

Words: 1710 - Pages: 7

Lululemon

...[pic] Lululemon manifesto has themes such as "do one thing a day that scares you, friends are more important than money and other inspirational sayings that create a large following for the company. The company gets its publicity from many marketing strategies including word of mouth. The company, According to Brittany Snow, Guest Educator at Lululemon focuses their marketing efforts on grassroots initiatives in the local communities and currently does very little print work. The popular manifesto has been a big seller for the company's brands, but even though the company has been able to use this manifesto as successful marketing tool are still major problems the company is confronting. lululemon is facing many changes as an aftereffect of the administration of past CEO, Bob Meers (Tushman, Page, & Ryder, 2010). These pivotal changes and other issues are plaqueing the compnay and may create havoc with the future of the company. Lululemon is now a publicly traded and owned entity and must prove to shareholders that the company can show strong major growth(Tushman, Page, & Ryder, 2010). Subsequently, the former and more effective growth strategy has turned out to be totally absent from lululemon's growth system in the United States(Tushman, Page, & Ryder, 2010). This has prompted low revenue in U.S. areas that are locked into leases at a high cost. Further more, on account of this speedy growth, the lululemon framework can’t keep up with the demand. ......

Words: 701 - Pages: 3

Lululemon

...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...

Words: 1935 - Pages: 8

Lululemon

...Lululemon Athletica, Inc. Ralph Forgeon Caroline Carlson Robert Livingston Hanz Masood Courtney Fields Bus 475: Seminar in Strategy and Policy Dr. Ybarra May 1, 2014 1 Introduction Lululemon Athletica Inc. designs and retails athletic clothing. The Company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness. Lululemon serves customers globally through its online and 254 retail stores. Mission and Goals Mission Statement: Creating components for people to live longer, healthier, fun lives. Lululemon has developed a distinctive community-based strategy that we believe enhances the brand and reinforces guest loyalty. The key elements of the company’s strategy is to: - Design and develop innovative athletic apparel that combines performance with style and incorporates real-time guest feedback - Locate stores in street locations, lifestyle centers and malls that position each Lululemon Athletica store as an integral part of its community - Create an inviting and educational store environment that encourages product trial and repeat visits; and - Market on a grassroots level in each community, including through social media and influential fitness practitioners who embrace and create excitement around our brand. 2 Growth Strategy Key elements of Lululemon’s growth strategy are to: ● Grow the Store Base in North America. As of February 2, 2014, the company’s products were sold through 225 corporate-owned stores in North......

Words: 8684 - Pages: 35

Soul Eater | Đăng nhập | Nathan Derrick