lululemon feasability report

Topics: World Trade Organization, FIFA World Cup, Globalization Pages: 12 (1157 words) Published: January 25, 2015
Feasibility Report

Expansion into Qatar
November 2014

Table of Contents
3Company Overview
4Key Factors to be Considered
4Why Continue our Global Expansion
5 Why Expand to Qatar
6What Challenges will Lululemon Face
6Is Qatar ready for Lululemon
8Is it Feasible to expand to Qatar
9Next Steps

Overview of Lululemon
Although the company was founded in 1998, Lululemon's first real store opened in British Columbia 2000. Chip Wilson, founder, had being part of the surf, skate and snowboard scene for over 20 years before he experienced the exhilaration of yoga and its idealology. His passion was in the development of technical athletic fabrics which he used to create the yoga wear we see today. His business savvy and success came from teaming his design and yoga studios into one building Today studuio/stores are located throughout Canada, Australia, China, Germany, the Netherlands, New Zealand, United Kingdom, United States of America and Singapore. The stores continue the tradition of being the community hub for healthy living through learning and discussion of yoga, diet, physical and mental fitness. It is the goal of the company to have staff that “could in fact positively influence their families, communities and the people walking into our stores” 1 As the Lululemon global marketplace presence expands, it remains true to its manifesto. Through it’s website, Lululemon sells and ships its products to over 83 countries (see Appendix A).

In March 2014, CEO Laurent Potdevin stated, “this year will be an investment year with an emphasis on strengthening our foundation, reigniting our product engine, and accelerating sustainable and controlled global expansion”.2 This report will look at the feasibility of expansion into Qatar. Key Factors to be Considered

Why Continue our Global Expansion
To build, your foundation must be solid. Lululemon continues to maintain strong domestic sales. The November 24 2014 closing price of company stocks were $46.93 per share.3 Since 2009 this stock has performed above the NASDAQ and S&P 500 average.4 In 2013 the company experienced shake-up in customer confidence. The company took this opportunity to realign their management team by hiring Laurent Potvin (CEO), Tara Poseley (Product Chief) and critically look at processes. These new key players have used their experience strengthen and bring a new direction. Lululemon has not reached market saturation yet. It continues to work on its supply chain issues and quality control. Competitors such as Nike, UnderArmour and the Gap are now selling similar, but cheaper, yoga wear. The company has extented the brand recognition. Women have a new fashionable casual wear line and stores are being opened that are exclusively for men. Lululemon is expanding its customer base while maintaining upscale product image.

Why Expand to Qatar
Qatar has the highest GDP per person in the world and is the third largest economy in the world. Market growth for 2014 is expected to be over 6%, 3% over estimated world growth.5

English is widely spoken and is the main language of business.

Qatar is committed to developing a broad-based private sector.

By 2030, Qatar’s National Vision aims to be an advanced society capable of sustaining its development and providing a high standard of living for its entire people6. The country expands this vision to develop:

its entire people to enable them to sustain a prosperous society. •
Just and caring society based on high moral standards, and capable of playing a significant role in global partnerships for development. •
Competitive and diversified economy capable of meeting the needs of, and securing a high standard of living for, its entire people both for the present and for the future. •
Management of the environment such that there is harmony between economic growth, social development and environmental protection.

What Challenges will...
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