Business Level Strategy Research 2022

Running head: BUSINESS LEVEL STRATEGY
BUSINESS LEVEL STRATEGY
Name of the student
Name of the university
Author note

1BUSINESS LEVEL STRATEGY
Executive Summary
The research aimed at identifying the different concerns that are being encountered by
Lululemon Athleticainc and the manner in which the quality related concerns affected the
capability of the organization in retaining the trust and commitment of the customers towards
their propositions. The research developed a SWOT assessment and identified the core
competencies of the organization. Moreover, the competitiveness of the other firms were
analyzed by in the research for delineating the position of the concerned venture in the markets.
The depreciating quality standards and the absence of effective customer assistance incapacitated
the organization in retaining the trust and loyalty of the customers. Moreover, the social media
scandalizing affected the brand image of the venture. Therefore, the research report developed a
range of alternative solutions and selected the best solution that might be implemented in the
organizational design for upholding the success factors. Moreover, the research also developed
cognition on the risks that might be encountered by the organization while implementing the
change and the manner in which the organization might take the initiative of planning on the
contingency. Therefore, the overall report aimed at identifying the probable activities that might
be considered by a organization with the purpose of improving the operational aspects.

2BUSINESS LEVEL STRATEGY
SWOT Analysis
Strengths
 Premium brand
 High brand image in the markets
 Improved ;financial status
 Developed R&D operations
Weaknesses
 High price of the propositions
 Increased operational expenses of the
organization
Opportunities
 Expansion in the emerging economies
 Diversification of the line of
propositions in the market
Threats
 Poor customer assistance department
 Intense competition is being faced by
the organization while operating in the
markets.
Competitive Analysis
Under Armour
Under Armour Inc. was founded by Kevin Plan in the year 1996. Its headquarter is situated in
Baltimore, United States. Under Armour is one of the strongest sports brand and leader in
performance apparel industry that designs, manufactures and distributes footwear, performance
apparels and accessories for men, women and children. Under Armour sells its product lines
through different wholesale distribution and also sell directly to it consumers through own retail
stores and online. UA generated revenue of $5 billion in FY 2017. Under Armour is the top
competitor of Lululemon Athletic Inc.
Nike

3BUSINESS LEVEL STRATEGY
Nike is a multinational company founded in 1964 as Blue Ribbon Sports and in 1971 changed its
name as Nike Inc. Nike designs, manufactures, markets and sells variety of sports footwear,
apparels and related accessories for men, women and youth. Nike has a strong brand image and
global presence. Nike uses different wholesale channels, retail stores, online platform, license
channels and independent distributors to sell its products lines i.e. Nike, Jordan, Hurley and
Converse. Nike is one of the strongest Lululemon Competitor. Based on Nike’s financial data its
annual revenue is $38.1 billion. It operates 1182 stores globally out which 392 stores in the
United Stated and 790 international stores.
Adidas
Adidas is a German multinational corporation founded July 1924. Adidas has a strong global
presence. The company designs, manufactures and markets sports footwear, clothing and related
accessories. Back in 2005 Adidas acquired Reebok for 3.8 billion dollar. The company employs
57000 people from 100 different countries. Every year the company manufacture 900 million
sports and lifestyle products with the help of its independent manufacturing partners. Adidas
annual revenue is €21.218 billion for the year 2017 and strong competitor of Lululemon.