Assignment on Strategic Management of Business
Added on 2020-04-13
9 Pages2475 Words69 Views
RUNNING HEAD: Strategic ManagementStrategic Management
Strategic Management 1IntroductionLululemon Athletics Inc. is athletic apparel company for both males and females (but basically targets women between the ages of 15 and 65) and provides a diversified range of shorts, shirts, pants and yoga accessories (Lululemon, 2017). It faces strong competition from Nike, Adidas and Under Armour and has adopted various business level strategies to expand its geographic market and to have an edge over its competitors (Car & Newell, 2014). Lululemon maintains high quality standards in its products which in turn has resulted in increased loyalty among the customers towards the brand.1.Critically evaluate Lululemon’s competitive environment. Does the company have a source of (sustainable) competitive advantage?Answer- The primary competitors of Lululemon include Adidas, Nike, Under Armour and VF Corp. and continuously face challenges and potential threats from its competitive environment. These competitors are unrivaled in terms of their global success as a result of their high performance products. These are financially powerful brands as compared toLululemon and also provide diversified range of products (Schlossberg & Lutz, 2016). But the competitive advantage for Lululemon lies in the fact that these brands are unproven in the yoga segment and they only provide limited focus on the yoga line. Therefore, Lululemon is capable of attracting the yoga enthusiasts since it creates value for its customers which could not be replicated by big brands like Adidas and Nike (CSI Market, 2017). Lululemon’s competitive advantage lies in the differentiation strategy in which unique materials are chosen in order to create products that attract the customers with their comfortable fitness and daily wear range. The organizational culture adopted by Lululemon is unique and therefore acts as the source of competitive advantage. The efficiency that it possesses due to outsourcing and technological advances in various processes relating to its online store has kept it a step ahead of its competitors. Moreover, corporate social responsibility is aimed by encouraging the employees to take responsibilities of their individual actions with Lululemon. It also has a different
Strategic Management 2department which is always engaged in developing innovative materials and products in order to have an edge over the competitors. Also, Lululemon establishes a connection with its guests which makes the customers prefer it over others (Lucid Press, 2015). In other words, a sense of responsiveness towards the customers is maintained at all times which have the ability to transform its customers into the die-hard supporters. The qualitystandards are never compromised and always upheld to meet the customer preferences. 2. Based on an analysis of the internal environment, discuss the company’s capabilities, and core competencies. Does Lululemon have any weaknesses that can impact its ability to compete in the future? Answer- Lululemon’s capabilities and core competencies are derived from its tangible and intangible resources. They aim to create value for their customers by the way of implementation of various strategies which are framed after proper consideration of all the relevant facts. Its capabilities include its unique product designs which are consideredas the key to its success. The products are intended to increase the fit appearance of the customers. Also, the higher prices are the result of innovation in the materials to provide a soft touch feel to the customers. Lululemon holds intellectual property rights over the designs of its products and also limit the availability of specific designs. Its research and development is dependent on the system of customer responsiveness so that the trends in the minds of the customers can be produced as products by them (Singer, 2012). Their unique feedback collection methodologies ensure that the brand and culture are propagated. Moreover, its organizational culture is focused on training and personal growth which results in attracting passionate and motivated employees. Also, the grassroots approach adopted by Lululemon for the purpose of marketing has resulted in the achievement of strong brand identity and customer loyalty (Sherman, 2016). The store employees of Lululemon are also trained and educated in order to develop strong relationships with clients.The ability of Lululemon to compete with other brands may be affected in future due to various reasons. Since the company spends huge amount of time and money on theresearch and development activities for the apparels, the prices are higher than its
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Strategic Management of Lululemon Athleticalg...
|9
|2787
|138
Assignment on Strategic Management A29579lg...
|10
|2692
|201
Strategic Management of Lululemon Athletica Inc - Deskliblg...
|10
|2655
|1112
Business Level Strategy Research 2022lg...
|20
|3096
|22
Strategic Planning for Lululemon Athletica: Objectives, SWOT Analysis, and Implementationlg...
|8
|794
|202
Strategic Management for Lululemon - Analysis and Recommendationslg...
|12
|2677
|133