Lulu Lemon Case - Grade: 92 PDF

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Lululemon...

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Lulu Lemon Case

What opportunity did Chip Wilson see that lead to the establishment of Lululemon? Chip Wilson noticed that the standard for yoga wear at the time was cotton clothing. Cotton clothing is not ideal for yoga and many other sports. Wilson’s vision was to create highquality, stylishly designed clothing for yoga and related sports activities using the very best technical fabrics. Why are Lululemon’s sales per square foot so high? Lulu’s turnover their inventory at such a fast rate. By keeping low stock of each unit, the company puts pressure on a customer browsing items in the store to make an impulse purchase, because the item is unlikely to be there the next time, they visit the store. The company’s products are expensive and they are so successful because their customer loyalty to the product.

How would you characterize Lululemon’s business level strategy? Business level strategy is extremely important in a successful business. strategy is the outcome of a formal planning process, and that top management plays the most important role in this process. As for Lulu they started with a focus on an unmet consumer need: the latent desire among yoga enthusiasts for high-quality, stylish, technical athletic wear. Often, Valuable strategies often emerge from deep within the organization without prior planning. One of lulus strategies is. Limiting their stock supply. New colors and seasonal items, for example, get a 3- to

12-week lifecycle, which keeps the product offerings feeling fresh. This strategy pushes costumers to buy on the spot rather than wait because they know it won’t always be an option. What are the main threats to Lululemon’s business? The main threat to Lulu business is their competition. After Lulus immediate success many other companies are trying to break into the market. The company is facing increasing competition from rivals such as Gap’s Athleta Urban Outfitters’ Without Walls, and Nike Stores. The only problem with this is the other companies listed are making apparel similar to Lulu but more affordable What are Lululemon’s main strengths? What are its weaknesses? Lulu main strengths are delivering high-quality, stylishly designed clothing. Lulu is known as the best in the market and to keep this reputation for themselves they constantly produce new top of the line apparel. Another strength lulu has is their consistency when hiring individuals with a passion in consumers and fitness. If the consumer is happy with the product and experience they will come back for more. As for weakness their products are expensive so they are only available to a certain high range market. What must the company do to maintain its competitive advantage? Competitive advantage is extremely important in terms of success within a company. To maximize long-run shareholder value, managers must formulate and implement strategies that enable their company to outperform rivals—that give it a competitive advantage. Lulu Lemon prides themselves on costumer experience and high-quality workout wear. Lulu Lemon make their stores unique by allowing managers to redesign the store two times a year and encouraging their employees to be hands on with a costumer’s experience. Employees are trained to listen to

complaints and allow customers to write them, this is a strategy that lulu uses to always continuously better themselves....