July 27, 2009
The symptom is very clear, because the shift of the concentration, through its seaweed content, the VitaSea line claims to reduce stress and provide anti-inflammatory, antibacterial, hydrating and detoxifying benefits to its wearers, but the New York Times’ test showed no evidence of seaweed in Lululemon’s clothing. This sent Lululemon’s stock price on a rollercoaster ride. Previously, Lululemon had been enjoying stellar stock performance, reaching $60 a share after an IPO price of $25 in July. Next day, the stock closed at $41.50(Robert Cordero 2009). While the stock is being fluctuating, the new retail store in Tokyo, Japan has been a failure because ignorance of the culture difference. Strategy Applied
Another smaller element of strategy in regards to the focus of the company on growth is the fact that they did not follow the change of social and environmental forces, especially in Japan, a very different market. Few marketing changes were made in this sector. Those changes should be focused on the culture difference and the fashionable design difference. External Factors
d'Astous, A., & Chnaoui, K. (June-July 2002). Consumer perception of sports apparel: the role of brand name, store name, price, and intended usage situation LIANNE GEORGE ( February 6,2008) http://www.macleans.ca/business/companies/article.jsp?content=20080206_87890_87890&page=1 LOUISE STORY (2007) http://www.nytimes.com/2007/11/14/business/14seaweed.html?_r=1 Robert Cordero (2009) http://www.businessoffashion.com/tag/lululemon The Canadian express (2009) http://www.metronews.ca/edmonton/business/article/244390--lululemon-s-growth-slows MacEwan School Of Business - Strategic Management. (2008). Prentice Hall Custom Business Resources. Boston: Pearson Custom Publishing....