Lululemon Swot Essay - 671 Words

SWOT Analysis Company name: Lululemon Athletica Inc. (NASDAQ:LULU; TSX:LLL) Product: Lululemon Athletica produces yoga-inspired athletic apparel for both women and men. Strengths #1. Innovative Design Process Lululemon offers high-quality premium athletic apparel that is designed for performance, comfort, functionality and style. The innovative design process is attributed to a number of factors such as, real-time customer feedback. Lululemon seeks real-time customer feedback on the design and development of new and existing products. By directly integrating the customer into the product development process the design team can understand and directly respond to consumer needs and wants while creating innovative designs that†¦show more content†¦[2] #2. Inadequate Inventory: â€Å"Lululemon’s growth is â€Å"stymied by inadequate inventory of popular items†[3] and sizes which often results in expensive air freighting of product from overseas. #3. Perceived female focus: Lululemon was launched as women’s only athletic apparel company, making it difficult to reeducate consumers that the company also carries men’s apparel†¦. Or #3. Price Point – There are other brands in the marketplace that offer the same product but at lower price point†¦ Or # 3 Perceived as a yoga only brand†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. O: Opportunities #1. A growing number of yoga participants in United States and Canada Over the years Lululemon has built significant brand equity among yoga enthusiasts. The number of yoga participants in the United States has jumped more than five-fold, from three million in 2000 to 16.5 million in 2005, growth opportunities for the business are excellent.[4] #2. Excess commercial real estate Due to the down turn in the economy there are increasing retail vacancies allowing Lululemon to negotiate favorable leases in Class A properties. #3. TBD T: Threats # 1 Weak economic conditions The current weak and volatile economic conditions, particularly in the United States and Canada, have impacted consumer spending. These week economic conditions will continue to impact consumer spending and purchasing habits for the foreseeable future. Consumers’Show MoreRelatedSwot Analysis For Lululemon Athletica1043 Words   |  5 PagesSWOT Analysis for lululemon athletica a. Current Strengths i. The commitment of the employees of lululemon athletica 1. Evidence from case: The employees commit to living a certain type of lifestyles in order to represent the company and the message behind it. (Page C-97) 2. Evidence from case: The employees of lululemon athletica are well rounded about the topics of healthy living, Yoga, and physical ways of staying healthy on a daily basis. This allows for customers to receive advice and recommendationsRead MoreLululemon: SWOT Analysis1561 Words   |  6 PagesLululemon is a marketer of clothing that ostensibly inspired by yoga. The company has carved out a niche for itself in the athletic apparel market by focusing on this type of clothing, marketing primarily to females, and selling at its own-branded stores. The company has enjoyed considerable success of late. Revenues have grown from $147 million in fiscal 2007 (basically calendar 2006) to $711 million in 2011. Net income was $7.67 million in FY2007 and $121.85 million FY2011 (MSN Moneycentral, 2012)Read MoreSwot Analysis Of Lululemon1219 Words   |  5 PagesLululemon was founded in 1998 by Chip Wilson in Vancouver, Canada. This yoga inspired brand started when Mr. Wilson’s studio was yoga by night and design by day and was looking to expand into more of a community feel. 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How strong are the competitive forces confronting lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. High Supplier Power There are a lot of suppliers available in the market that want to produce for lululemon because of the increased value of the company High Buyer Power Other brands offer the same products Low cost switching because other brands offer these items at a lower price Moderate New Entrants PopularRead MoreCompetitive Forces : Marketing Strategy1287 Words   |  6 PagesCompetitive Forces: Five Forces Analysis The five forces analysis shows that lululemon is confronted by moderate or low competitive forces. 1. Buyer Bargaining Power: This threat is very weak because lululemon sells directly to consumers, who rarely have haggling prices or other terms with sellers. Lululemon rarely sells wholesale, and when they do it is to support their grassroots marketing strategy to increase brand awareness. Although buyers could switch to a competitive brand, they would notRead MoreThe Global Fitness And Athletic Clothing Stores1637 Words   |  7 Pages I. SITUATION ANALYSIS The global fitness and athletic clothing stores industry generates more than 1.9 billion US dollars per annum (IBISWorld, 2015). Lululemon Athletica provides high quality apparel for the ever-growing global health conscious population (WHO | World Health Statistics 2015, 2016). A SWOT analysis (Appendix 1) illustrates potential and weakness of this hugely successful brand. Furthermore, environmental factors can play a role in the company s operations. Macro Environmental