Lululemon Athletica Inc. | Document

Running head: LULULEMON ATHLETICA, INC.
LULULEMON ATHLETICA, INC.
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LULULEMON ATHLETICA, INC.1
Abstract
This assessment focuses on Lululemon Athletica, Inc. and measure the strategies whether
they will help in getting the company back on track.

LULULEMON ATHLETICA, INC.2
Background of the company
Chip Wilson was the founder of Lululemon Athletica, Inc. in the year 1998. This
company, situated in Canada, is inspired from yoga so it designs athletic clothes for men and
women. From then the company has expanded internationally and sells their product in online
as well (Lululemon.com.hk, 2020).
Porter’s five forces analysis
 The threat from new entrants is higher for Lululemon Athletica, Inc. Several athletic
apparel retail stores have started a new business function in yoga clothing (Baalbaki,
Gilliard, & Hoffman, 2019).
 Bargaining power of suppliers is not too high for Lululemon Athletica, Inc. as the
company purchases supplies from five different suppliers from Asian pacific region.
 Bargaining power of customers have a moderate to higher level of influence over
Lululemon Athletica, Inc. as the consumer switching cost is much lower and can avail
more other options in the market.
 Threat of substitutes is lower for Lululemon Athletica, Inc. because the alternative
companies cannot satisfy the customer needs.
 Rivalry among competitors is low for Lululemon Athletica, Inc. although the sales are
increasing.
Strategic performance and market position of the company
Compared to its competitors, Lululemon Athletica, Inc. has a unique performance
strategy. Lululemon Athletica, Inc. provides products to their customers, which are different
from their competitors. The company introduces their self-designed yoga and fitness clothing
after analyzing the customer needs (Tybout, 2017).