Lululemon: Internal Analysis
Internal
Analysis
Submitted to: Professor Ken Grant
Course: BUS 800 Date: October 22,
2014 Team Members: Samia Attlassy,
Peter Burkholder, Maria Castellanos,
Bobby Panesar & Feroze Shah
Team #9: Strategy+
Internal Analysis
Overall Current Strategy
*The following information taken directly from the case*
• Grow the store base in North America, primarily United States
• Open additional stores outside North America
• Increase awareness of the lululemon brand and apparel line
• Incorporate next-generation fabrics and technologies in the company’s products to strengthen consumer association of the lululemon brand with technically advanced apparel products and enable lululemon to command higher prices for its apparel products compared to the prices of traditional athletic apparel
• Broaden product line by designing lululemon products for a bigger range of athletic activities • Provide distinctive in-store shopping experience complemented with strong ties to fitness instructors and fitness establishments, local athletes and fitness-conscious people, and various community based athletic and fitness events
1. Financial Analysis
Current Financial Health: STABLE
• Established a total of 174 corporate owned stores globally
• Based off the data in Figure 1, in the Appendix lululemon has: o Witnessed continuous growth in their Net Revenues since 2007- 2012 (as represented by the blue boxes). Year Over Year growth in Net Revenues since 2007. An approximate 650% growth in Net Revenues since 2007. o Decreased the proportion that COGS represented of the Net Revenues since
2007 (as represented by the green boxes) o Witnessed steady growth in their Net Profit since 2007-2012 (as represented by the pink boxes)
• Based off the data in Figure 2, in the Appendix lululemon has: o Witnessed steady growth in cash and cash equivalents since 2007-2012. o Increased levels of global inventory since 2007, approximately 4X the amount. o Raised the sales
Analysis
Submitted to: Professor Ken Grant
Course: BUS 800 Date: October 22,
2014 Team Members: Samia Attlassy,
Peter Burkholder, Maria Castellanos,
Bobby Panesar & Feroze Shah
Team #9: Strategy+
Internal Analysis
Overall Current Strategy
*The following information taken directly from the case*
• Grow the store base in North America, primarily United States
• Open additional stores outside North America
• Increase awareness of the lululemon brand and apparel line
• Incorporate next-generation fabrics and technologies in the company’s products to strengthen consumer association of the lululemon brand with technically advanced apparel products and enable lululemon to command higher prices for its apparel products compared to the prices of traditional athletic apparel
• Broaden product line by designing lululemon products for a bigger range of athletic activities • Provide distinctive in-store shopping experience complemented with strong ties to fitness instructors and fitness establishments, local athletes and fitness-conscious people, and various community based athletic and fitness events
1. Financial Analysis
Current Financial Health: STABLE
• Established a total of 174 corporate owned stores globally
• Based off the data in Figure 1, in the Appendix lululemon has: o Witnessed continuous growth in their Net Revenues since 2007- 2012 (as represented by the blue boxes). Year Over Year growth in Net Revenues since 2007. An approximate 650% growth in Net Revenues since 2007. o Decreased the proportion that COGS represented of the Net Revenues since
2007 (as represented by the green boxes) o Witnessed steady growth in their Net Profit since 2007-2012 (as represented by the pink boxes)
• Based off the data in Figure 2, in the Appendix lululemon has: o Witnessed steady growth in cash and cash equivalents since 2007-2012. o Increased levels of global inventory since 2007, approximately 4X the amount. o Raised the sales