Swot Analysis For Lululemon

Lululemon is poised and well positioned to move to another level in the luxury sports apparel marketplace. While our challenges over the last 18 months have been impactful, we have maintained profitability and have not lost significant market share. In response, our leadership team conducted environmental and organizational scans over the last 30 days. From these scans, we have identified some future strategic opportunities and challenges that when addressed, will set us up to become the #1 sports luxury apparel brand in the world. We will continue our innovation by introducing new products lines; there is a great opportunity for us to expand into a children’s line. Another opportunity for Lululemon is to investigate new channel strategies
Significant macro trends worth noting include: sustained popularity of yoga fitness for the near term, continued growth in online sales, and sustained usage of social media (with women representing a disproportionately large amount of users engaging our brand). Due to the use of petroleum and cotton products, material and labor costs for Lululemon can sometimes be unpredictable based on fluctuations in these commodity markets. Our industry analysis indicates that the sports apparel brand is a $106 billion dollar industry with the two biggest players only owning 14 percent of the market share, [See Financial Analysis Slide]. We are the top ranked premium sports apparel organization and the 5th highest ranking organization
We possess a loyal customer base and have recently moved all of our stores from the franchise model to being ran internally to maximize on our culture. From this environmental scan, we were able to conduct a comprehensive and in-depth internal analysis to determine how well prepared we are to match the threats and opportunities we face. Our organizational scan included an operational health report, a financial report, and a review of our culture. The current organization is structured so that there is an opportunity for open communication throughout the business, while wellness programs create high employee satisfaction. Since our inception, our culture has been about creating components for people to live long, healthy, and fun lives. This culture permeates through our employees, our in-store experience, and of course our customer base. We believe in support of the communities in which we are a part by creating various festivals, retreats and continually focusing on sustainability. Overall, our internal report shows we are poised for growth and have the tools to take advantage of our opportunities while meeting our challenges head