Professional Documents
Culture Documents
14
Fall
Fall
Competition
Rival Sellers
Competition
industry is
on the
quality,
performance
capabilities
rival
selling a
comparable
Competition
sells their
much less
Lululemon,
from brands
that sells at a
and Athleta
themselves
(C1). The
the yoga
apparel
has been
people have
the product
than just
has propelled
segment to
growth that
companies
recognized
potential.
Competitio
n from rival
sellers
-Moderate
Competitio
n from
potential
new
entrants
-Low
Competitio
n from
producers
of
substitute
products
-High
Supplier
bargaining
power
-Low
Customer
bargaining
power
-High
From
within the
centered
products
and
with many
companies
product.
generally
product for
than
ranging
like Nike
bit lower
pricing
20$ lower
growth of
sports
industry
huge a
been using
for more
yoga. It
this
such
other
have
the
Lululemon has
positioned itself well within the sports apparel industry as a premium yoga and
active wear company. Marketing its clothing in the lifestyle market to the young
and affluent women with plans to expand greater into the male clothing market as
well.
Demographics
Lululemon positions its self towards the fit, hip, affluent young women between
17-34. Lululemons attractiveness comes across to women that are looking for
premium apparel that is comfortable to wear in an active lifestyle. Targeting
women, Lululemons product lines are designed with stretchy materials that fit the
contours of all body types.
Products
Lululemon offers a diverse and growing selection of premium-priced performance
apparel. Lululemons products include three trademarked fabrics by the company:
Luon, Luxtream, and Silverescent. These fabrics build on the style and popularity
of the product while diversifying them from competitors. Plans to expanding
further in the mens yoga, running and gym shorts market will be Lululemons next
product line expansion (C4)
2012.0
2011.0
2010.0
2009.0
Hig
h-Price Strategy
Lululemon prices their products at a premium, well ahead of their competition
listing Lululemon on the top of the price axis of the perception map. The
perceived value of Lululemon and the stigma of a must have product has created
a willingness to pay the premium price for their product. This high price strategy
has proven to be financially successful as shown in the graph.
Key success factors
The most significant factors to the future success of the industry are the factors
covering resources, competitive capabilities and product attributes (C3).
Marketin
Marketin
g
g
Activities
Activities
This factor is used to better understand the consumer and respond to consumer
interests. Research is conducted globally cover demographics, marketplaces and
changing interests.
Contracting with manufactures to produce and distribute the products efciently is
of the utmost importance when dealing with large quantities of product.
Extensive
Extensive
Research
Research
&
&
Developm
Developm
ent
ent
Production
Production
and
and
manufactu
manufactu
ring
ring
facilities
facilities
distributio
distributio
n facilities
facilities
n
Employees, staff and executives are just a small part of what makes the day to day
operations of any major company
Capable
Capable
Workforce
Workforce
Innovation
Innovation
Lululemon has posited its product to be sold through select yoga studios, health
clubs, and fitness centers as a way to promote its product locally. Sales within the
company owned retail stores leverage such aspects as displays, customized
fixtures and overall decor while keeping select center displays open for short
cycles products that keep the store fresh.
Production and Manufacturing Facilities
Lululemon has contracted arrangements with suppliers, built strong channels and
outsourced its production to be more efcient. Lululemon conducts business on a
contract to contact level allowing them to be flexible with suppliers and receive
the lowest rates.
Research & Development
Developing the product as superior quality is done through superior processes.
Lululemons active wear is made with anti-microbial wicking fabrics with flat
seams, ensuring it is non-abrasive to the wearer. The features of the product are
designed with the consumer in mind forming a very desirable product.
Market Penetration
According to Chip Wilson (C2), the key to success in the market is getting in first.
First mover advantage was a huge success factor in redefining the yoga pants in
the 21st century.
Lululemon has successfully achieved all necessary key factors in the industry.
They have proven their quality, innovation and distribution of their product at an
exceptional level.
Citations:
C1)Peterson,Hayley."Lululemon'sPantsAren'tWorthThatMuchMoreThanThe
Competition."BusinessInsider.BusinessInsider,Inc,24Sept.2014.Web.02Oct.
2014.<http://www.businessinsider.com/whylululemonspantsaresoexpensive2014
9>.
C2)"Lululemon:BuildingtheBrandfromtheGroundYogaMatup."Strategy.
StrategyStaff,13Jan.2013.Web.03Oct.2014.
<http://strategyonline.ca/2003/01/13/lululemon20030113/#ixzz3F6ZkVgVY>.
C3)"EducatingPeopleForTomorrow."MBALectures.MBALectures,7Jan.2011.
Web.03Oct.2014.<http://mbalectures.com/management/strategic
management/1178/keysuccessfactorsofnike.htm
C4)Lutz,Ashley."LululemonHasOneHugeHopeForExpansion."BusinessInsider.
BusinessInsider,Inc,11June2013.Web.03Oct.2014.
<http://www.businessinsider.com/lululemonmustexpandmenswear20136