Lululemon Essay

a few percent, in 2012 the gross profit margin is the highest it has ever been

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.

When it comes to a social aspect, Lululemon is becoming an increasing trend: a result of consumer approval. The company does take hits though for its return policy and many people feeling that their staff is not very friendly. The media took blows on the company when there was a murder that took place at one of their stores and the conflict was between two of the employees(Lawrence). They are seen as having sustainable development and being environmentally friendly. They are also conforming to demographic changes and developing lines for men and youth. As for a technological aspect, they are praised for their several forms of social media and keeping customers up to date as well as their up keep of fashion trends(MBASkool).

Another social factor is demographics. As Lululemon products are highly prices, it is important to research the social economic aspects of the neighborhood. Moreover, Lululemon faces high rates of obesity and overweight in America and Australia, hence the importance for well-trained “educators.” As Lululemon incorporated e-commerce in 2009, a technological as well as an external factor is to ensure customer service provides the same level of customer services as the face-to-face interaction in the stores, and to maintain the website up-to date. It is important for Lululemon to maintain a user friendly website that would encourage people from all ages to buy Lululemon’s products.

1.What is your assessment of the strength of competitive pressures stemming from rivalry among Under Armour, Nike and Adidas-Reebok?

Instead of conducting traditional marketing which has huge marketing budgets, Lululemon heavily relays on word of mouth. Moreover, the grassroots branding strategy make them differentiated from their competitors. Lululemon providing free class and made instructors be their models which become a very successful way to promote their products.

They approach community yoga teachers to wear their products so they can test it and recommend it to their students. Besides this, they give them free items and opportunities to deepen their relationships with them. On the whole, being able to focus on one aspect alone helps lululemon to make them standout among the pool of competitors accompanied by their community based strategy.

This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that of its closest competitors. In conclusion to the analysis, recommendations have been made to potentially guide Lululemon Athletica, Inc. in a positive direction in regards to its future endeavors. The following

One of Lululemon’s ethical issues that it is currently practiced is that Lululemon encourages employees to ease drop on its customers to gain more knowledge on the current complaints/defects with its products. This practice was introduced to the company because Lululemon is known for wanting to avoid collecting large amounts of customer data through large data techniques. Rather, the company aims to have a close and open relationship with its customers. Lululemon would rather connect with its customers while they are shopping in the store or in its company offered yoga lessons after the store closes rather than collecting data. The company was founded on the mission of “creating components for people to live longer, healthier, fun lives” this philosophy led to Lululemon seven core values: quality, product, integrity, balance, entrepreneurship, fun, and greatness. In this case, the implicated values that have arisen are integrity, quality, and greatness. As a company, Lululemon values greatness as a key value in how the company functions, they do this by always striving to have the best quality products and to be the greatest company. However, another key value is integrity which it encourages its employees to have the quality of being honest and having strong moral principles. The implication of having employees ease drop on its customers in order to gain feedback on the company’s product violates its value of integrity.

Lululemon is a large company, making clothing for athletic activities, not only are they in the women’s athletic range, but they have hit the men’s market and youth range as well. A SWOT analysis will be used to break down Lululemons strengths, weaknesses, opportunities, and threats to the business. Strengths which Lululemon have achieved include multi-faceted and community-based approach strategy, making customers feel part of a community through marketing strategies like there “ambassador program, social media, in-store community boards and grassroots initiatives” (Lululemon, 2016 Annual Report, 2016, p. 3). Touchpoints which have been a part of this multi-channel include Lululemons websites www.lululemon.co.nz and ivivva.com which is based around female youth active ware. With Lululemon having 12,500 full-time employees worldwide (Lululemon Athletica Inc. (LULU), 2017) with 406 stores (Lululemon, 2016), their large market capital of $8.33 billion (Lululemon Athletica Inc. (LULU), 2017), shows the total value of Lululemons shares of stock. Lululemon having $581.1 million in net revenue, this is an increase of 13% while their gross profit increased by 17% rising to $297.4 million. (Lululemon Athletica Inc. Announces Second Quarter Fiscal 2017 Results, 2017). This shows a steady increase in profit for Lululemon for 2017 which is a strength for them.

Lululemon is one of the Canada’s best retailers of technical athletic yoga apparel. Lululemon’s yoga inspired apparel is marketed under the two brand names Lululemon Athletica for more mature women and Ivivva Athletica for younger girls. Lululemon primary target customers are educated and hard working women, who understand the importance of healthy and active lifestyle. Majority of these women are Caucasian who are mainly urban and have higher income, since Lululemon is an expensive brand .Most of their products are design to offer fit, performance and comfort while incorporating both style and function. On another hand, American Apparel

Introduction: This business analysis will define the various problems related to the manufacture of the Luon Pants made by Lululemon Atheltica Inc. The Luon product was pulled because of a higher ration of sheerness, which made the pants. Lululemon Inc. has also been negligent with handling customer service at local retail outlets. A More so, the corporate leadership at Lululemon Inc. has been negligent in acknowledging heavier weight consumers that are not part of the “physically fit” demographic. A systems analysis of these various parts of the Lululemon corporation that need to be resolved to return the company to higher performance quality in pant materials, corporate leadership, and customer service.

At first I thought that Under Armor would be an exception to this but then I realized that they don’t have exclusive deals with the manufacturers that they acquire their fabrics from to make their products. Therefore if one of its rivals ever wanted to they could possible acquire some of the innovative fabric that Under Armour uses and then use the fabric you produce similar products.

In the book The Family Crucible it gave detailed insight into the effort and knowledge necessary to assess and assist a family unit to bring homeostasis back into their lives. From the beginning to the end this book thoroughly covers the story of a family who believes their problems stems from one individual and come to find out there are other underlying issues that play into the initial reason for setting their first family therapy appointment. While the story unfolds there were several new insights and challenges brought to my attention.

Over the last 10 years’ gym memberships within the United States have increased from 41.3 million to 54.1 million. The biggest trend over the last few years is becoming fit, more and more each day people are finding ways to live fit and healthier lifestyles. From eating the right nutritional foods, working out and people just wanting to follow the latest and greatest trends. The increase in gym memberships and the amount of people working out leads to the increase in athletic attire. For this exact reason athleisure wear was born, it is the newest fashion trends were people wear athletic clothing regardless if they intend go to the gym or not that day. People are wearing it to the office, shopping, to run errands and other social events. Athleisure wear consist of articles of clothing such as spandex, leggings, yoga pants, sports bras and fashionable sweats. Over the last 10 years an increase in athleisure wear has spread at a rapid rate globally, particularly in the women’s fashion industry. Since 2013 the increase in athleisure wear apparel has grown by 14% and accounts for 18% of the total clothing retail market. With this trend still catching on, active wear is expected to continue to grow at an average rate of 3.3% annually. Due to this rapid increase in purchasing athleisure wear the apparel industry will continue to grow especially Nike because they are the market leaders in active sportswear. For that exact reason I believe that Nike is a