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Assignment on Strategic Management A29579

   

Added on  2020-01-07

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Strategic Management A29579Name:Institution:Course:Date:

2STRATEGIC MANAGEMENT A29579IntroductionHeadquartered in Vancouver, British Columbia, Canada, Lululemon Athletic Inc. is an athleticdesigner and retailer of technical athletic clothing. It produces the clothing and also runs manyinternational clothing stores. Lululemon's main competitors are Nike, Adidas, and Under Armourjust to mention a few. 1.Evaluate Lululemon's competitive environment. Does the company have asource of sustainable competitive advantage?As the market size for sporting clothing continues to grow, so do the industries producing theclothing grow. Many sports clothing companies are established as the already existing areenlarging to reach more people and meet the market demand. Lululemon is thus facing fiercecompetition from its competitors in the sports clothing market. For lulu lemon to stay inbusiness, they have to look at several factors like price, quality, and speed of delivering. If thecompany becomes ignorant of these factors, then it will be thrown out of business by companieslike Nike, Adidas, Puma, and Under Armour among others. In the sports clothing business, thereis also potential development of substitute products and services and any company in thisbusiness must invest heavily in the R&D department to make sure that their products are notkicked out of the market by substitutes. Investing heavily in R&D helps the company to come upwith new ideas, and this reason ensures that the company is not facing fierce competition fromnew entrants in the market. Other factors that determine the nature of the competitiveenvironment is the bargaining power of suppliers and consumers. In the sports business clothing,a company like Lululemon is supposed to have several suppliers so as to avoid a situation where

3STRATEGIC MANAGEMENT A29579the supplier has more bargaining power than the company. When a company has appealingproducts which meet the customer needs, then it eliminates the situation where the customer hasmore bargaining power because they will not opt to buy from other companies (Human Kinetics,2010). Although Lululemon is a very young company compared to companies like Nike and Adidas, ithas some competitive advantages which are sustainable enough to keep it in business andgrowing as well. For instance, sometimes back Lululemon's company founder made some sexistremarks which made its stocks to dip several times because of market speculation (Tofurious,2015). However, this did not affect the company's revenue and it continued to grow. This mayhave been caused by its competitive advantages like patented technology, preemptive retailstrategy and their yoga community (Tofurious, 2015). A customer many have wanted to buyyoga attires from other companies because of the remarks, but there was nowhere else would he/she get technologically best attire. If Lululemon continues the same trend of offering high qualityand unique clothing, then their competitive advantage will be sustainable for a long time. 2.Based on an analysis of the internal environment, discuss the company'scapabilities, and core Competencies. Does Lululemon have any weaknessesthat can impact its ability to compete in future?Just like any other successful organization, Lululemon has some capabilities as well as corecompetencies. Among the capabilities, is how they conduct their marketing and sales theirapproach to marketing is focused on increasing the brand identity and customer loyalty (Tsang,Chu, and Pothecary, 2013). In short, their advertising is community-based. The company buildslocal networks through sponsored events (Road Less Invested, 2012). Another capability is that

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