Lululemon Case Study
Nova Southeastern University
Wayne Huizenga Graduate School of Business & Entrepreneurship
Assignment for Course: MGT 5090 – Entrepreneurial and Strategic Thinking
Submitted to: Dr. Regina A. Greenwood
Submitted by: Anais Carrasco
Date of Submission: May 30th, 2013 Title of Assignment: CASE 4 – Lululemon Athletica Inc.
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student Signature: Anais Carrasco
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Instructor’s Grade on Assignment:
Instructor’s Comments:
Executive Summary
Problem Statement Lululemon is faced with the challenge of developing a set of actions to improve the company’s future prospects.
Analysis
* The market for yoga clothing and other active-wear is ranked the fastest growing segment of the apparel industry in the U.S. * There is a latent profitable market for athletic clothing companies to suit overweight and obese population needs. * Two-thirds of adults in the U.S. are overweight or obese. * Consumers will spend around $332 million on fitness apparel in specialty plus-size women’s clothing stores this year. * Barriers to enter this industry are very low. * Competition among suppliers is fierce. There are many available options for companies to choose from when it comes to suppliers. * Besides retailers and independent shops, customers can find active wear on the Internet; therefore E-commerce is considered the main substitute in the industry. * The bargaining power for buyers is low. * Competition among retailers is fierce. All players, but most significantly large companies, use great
Wayne Huizenga Graduate School of Business & Entrepreneurship
Assignment for Course: MGT 5090 – Entrepreneurial and Strategic Thinking
Submitted to: Dr. Regina A. Greenwood
Submitted by: Anais Carrasco
Date of Submission: May 30th, 2013 Title of Assignment: CASE 4 – Lululemon Athletica Inc.
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student Signature: Anais Carrasco
*******************************************
Instructor’s Grade on Assignment:
Instructor’s Comments:
Executive Summary
Problem Statement Lululemon is faced with the challenge of developing a set of actions to improve the company’s future prospects.
Analysis
* The market for yoga clothing and other active-wear is ranked the fastest growing segment of the apparel industry in the U.S. * There is a latent profitable market for athletic clothing companies to suit overweight and obese population needs. * Two-thirds of adults in the U.S. are overweight or obese. * Consumers will spend around $332 million on fitness apparel in specialty plus-size women’s clothing stores this year. * Barriers to enter this industry are very low. * Competition among suppliers is fierce. There are many available options for companies to choose from when it comes to suppliers. * Besides retailers and independent shops, customers can find active wear on the Internet; therefore E-commerce is considered the main substitute in the industry. * The bargaining power for buyers is low. * Competition among retailers is fierce. All players, but most significantly large companies, use great
References: Booton, J. (2013, March 22). Lululemon Debacle Reveals How Cheap Labor Can Backfire. FOXBusiness. Retrieved from http://www.foxbusiness.com/industries/2013/03/22/lululemon-debacle-reveals-how-cheap-labor-can-backfire/ Frojo, R White, M. (2013, May 13). More Brands Find It 's Not a Stretch to Offer Plus-Size Yoga Attire. NBC News. Retrieved from http://www.cnbc.com/id/100732455 Appendix A