Lululemon Case Study

956 words 4 pages
LULULEMON
CASE STUDY
FEBURARY 9, 2013

Question # 1
SWOT
Strengths: niche market leader, product technology, customer focused, quality, innovation, brand, corporate social responsibility, and sustainability
Weaknesses: perceived female focus, Local centricity, price point, inventory, perceived as yoga only, distribution, and access to stores
Opportunities: Product diversification, line expansion, accessories, leveraging perceived expertise, category leader, and expert
Threats: Buyout, fad potential, low barriers to entry, competition, global economic state, and unfavourable exchange
PEST
Political: childhood obesity, costs on healthcare, tax incentives for extra-curricular programs, healthier lifestyles and thinking, and
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Lululemon is valuable due to the company’s ability to reduce their cost and generate high revenues by offering superior customer experience. They developed strong relationship with its customers that are very deep and effective. It is also expanding the reach further through e-commerce and on-line presence as a part of its global expansion strategy. The customer rapport is a very important part that adds to the company’s achievements. The superiority of their customer relationship is grounded on the flow of information between the company and the customer. Lululemon supplies quality interactions to the customers which goes past selling exercise attire, but invites them to be a part of that “exclusive club” that encourages bettering one’s self through exercise and optimistic thinking. As a result the customer purchase is perceived as an investment in oneself.
They are rare because of the and tactics to community engagement. Competitors characteristically take on traditional sales and marketing procedures to distinguish the product because resources are costly to imitate due to lululemon’s unique culture and distinctive store environment with a brand name that has been established over time.
In order for Lululemon to sustain its dominating position, these resources have to be well organized when choosing and implementing their strategies.
Question # 4
To preserve its prevailing position Lululemon

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