Lululemon Athletica

CASE STUDY
Lululemon Athletica, Inc.

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A. Executive Summary: Lululemon Athletica Inc, styled as lululemon athletica, is a self-described yoga-inspired athletic apparel company, which produces a clothing line and runs international clothing stores from its company base in Vancouver, British Columbia, Canada. The company was founded by Chip Wilson, a yoga enthusiast, in 1998. The company began as a store selling Yoga fabrics and a studio of practicing yoga. Lululemon has invested considerable time and energy building its brand identity and company culture, which has resulted in loyal customers and employees. Consistent with the company’s mission of “providing people with the component
The company announced its growth strategy with 5 elements: grow the company’s store base in North America, Increase brand awareness, introduce new product technologies, broaden the appeal of lululemon products and expand beyond North America. The lululemon management as well as investors and business analysts were considering the following top priority issues: - How long the lululemon athletica phenomenon would last and whether the company could keep its current performance in the future. - Whether the growth and expansion strategy of the company in the international markets would be successful. - Whether the company could carve out a sustainable market position for itself in the fitness and athletic apparel industry, especially against such competing names as Nike, Under Armour, adidas and
The company’s internal resources and capabilities such as effective brand connection with customers, its own distribution and high quality products enabled the company to offset a high threat of substitutes and intense rivalry among competing firms. Lululemon managed to offset the attractiveness of substitute products by offering high-quality product combined with unique and superior customer experience that is highly valued by its target group. This resulted in extremely loyal customer base and brand