Lululemon Business Strategy
Lululemon was founded by Chip Wilson who took a commercial yoga class in Vancouver and was immediately drawn in to the concept. After spending many years in the surf, skate, and snowboarding business, he found yoga was performed using cotton clothing and this seemed inappropriate because it neither removed sweat adequately nor did it allow for maximum flexibility. Given his passion and expertise in technical athletic fabrics, he began a movement in yoga clothing where he relied on feedback from yoga instructors to optimize his apparel.
Lululemon was founded in 1998 to meet these goals. It opened its first store in November 2000 in Kitsilano, a beach area of Vancouver BC. Beyond getting feedback from instructors on how to improve the performance of the apparel, the firm sought to act as a community hub where people can interact and share the physical and mental aspects of having a healthy lifestyle.
1. What are the key elements of the strategy that Lululemon is pursuing? What generic strategy best fits Lululemon’s strategy?
The five key elements are:
Grow the company store base in North America
The strategic objective was to add new stores to strengthen the company’s presence and then tap into new geographical markets in the Canada and US
Increase brand awareness
Leveraging the publicity surrounding, the opening of new stores with grass roots marketing programs. This included organizing events and partnering with local fitness coaches.
Introduce new product technologies
Continue to focus on developing and offering products that incorporate technology enhanced fabrics, and performance features that differentiate Lululemon for its competitor and increase its customer base.
Broaden the appeal of Lululemon products
This is divided in 3 sections
1. Adding men apparel to the line
2. Expanding to product category to items such as athletic bags, undergarments, sandals, outerwear
3. Adding products suitable additional sports and athletic activities
Lululemon was founded in 1998 to meet these goals. It opened its first store in November 2000 in Kitsilano, a beach area of Vancouver BC. Beyond getting feedback from instructors on how to improve the performance of the apparel, the firm sought to act as a community hub where people can interact and share the physical and mental aspects of having a healthy lifestyle.
1. What are the key elements of the strategy that Lululemon is pursuing? What generic strategy best fits Lululemon’s strategy?
The five key elements are:
Grow the company store base in North America
The strategic objective was to add new stores to strengthen the company’s presence and then tap into new geographical markets in the Canada and US
Increase brand awareness
Leveraging the publicity surrounding, the opening of new stores with grass roots marketing programs. This included organizing events and partnering with local fitness coaches.
Introduce new product technologies
Continue to focus on developing and offering products that incorporate technology enhanced fabrics, and performance features that differentiate Lululemon for its competitor and increase its customer base.
Broaden the appeal of Lululemon products
This is divided in 3 sections
1. Adding men apparel to the line
2. Expanding to product category to items such as athletic bags, undergarments, sandals, outerwear
3. Adding products suitable additional sports and athletic activities