Strategic Management for Lululemon - Analysis and Recommendations

This report provides an analysis of the strategic management of Lululemon, an online library for study material with solved assignments, essays, dissertation etc. It includes recommendations for the company to sustain its competitive advantage in the market.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Answer to question 1
The company is into manufacturing sports apparel, which is specially inspired by yoga.
The company has specialized in the manufacturing of the sports goods in order to support the
needs of the people. On the other hand, the most important competencies of the company is
based on the important aspects of the demand. The high priced products that are being
manufactured by the company also have an increasing demand, which is not barred by the price
of the product (Hitt, Ireland and Hoskisson 2012). Therefore, an important factor supports the
company’s competitive advantage over the other companies that manufactures the same range of
products in a lower price. The product offering of the organization is being enhanced through the
understanding of the requirements of the people.
The most important steps that are being undertaken by the company are based on the
requirements of the people. The cotton wear that was introduced by the company earlier for the
yoga pants are being modified in order to increase the sustainability and with the consideration
of making the attires more comfortable. The consumer-oriented approach of the organization and
the improvements brought about by the company in its line of products is the factor that helps in
sustaining the organization in the market. However, the competition that is being faced by the
company is based on the limited line of products manufactured by the organization. The core
competitors of Lululemon, Adidas, undertakes the manufacturing of not only sports apparels but
also accessories in order to support the needs of the people. The shoes and the apparels that are
being manufactured by the Adidas are based on the requirements of the consumers in order to
support the sports needs (Peppard and Ward 2016). The core competencies of the company help
in understanding the different aspects of the trade that is being undertaken in order to have an

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acquisition over the market. The famed companies Adidas and Nike have taken steps in order to
hold on to the market with their low priced product offering. It is perhaps a threat for the
Lululemon in the end. Quality of the products are being maintained by the competitors as well,
but the specialization of Lululemon in the manufacturing of the yoga inspired apparels has
helped the organization to sustain in the market with the ongoing trend. The revenue that is being
created by the organization is much lower than that created by Adidas. It affects the systems
undertaken by the organization. On the other hand, the employees in the company are low in
order to support the rate of productivity that is being undertaken by the organization. The income
statement of the company that is being recovered from the case study portrayed the growth of the
revenue to 41.47% in the recent years (Hair et al. 2012).
Answer to question 2
The internal environment of the organization helps in determining the sustainability of
the company. The most important consideration that must be undertaken by the concerned
company is due to the limited labor forces and the price of the commodities that are being
manufactured by the organization (Eden and Ackermann 2013). The company might face
problems with their productivity in the future as the competitors of the company is taking steps
in order to improve their range of products in the market based on the requirements of the
consumers. Alternatively, the limited range of products that are being manufactured by
Lululemon also poses a threat for the company as the other companies hold on to the market
based on the varied requirements of the consumers. It helps the competitors in grabbing a market
of their own and thereby creates a brand loyalty among the target consumers (Slack 2015).

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The management of the concerned company and the employee motivation also plays a
major role in its sustainable approach. It helps the organization in making the most of the human
resources for the growth and the continuous expansion of the organization. The retention of the
workforce based on the remunerations and the grants, the recognitions and the rewards will help
the company in making its continuous progress in the market. The most important consideration
that is being undertaken by the organization is based on the requirements of the consumers
(Wheelen and Hunger 2017). The consumer-oriented approach of the organization helps in the
maintenance of the market standards and thereby brings in progress in the organizational
structure. The vision of the company in bringing in innovations in the attires helped the
organization in setting the organizational goals. It has contributed to the success of the
organization in the market. On the other hand, the contribution of the human resource helps in
the developments planned by the organization. The contribution of the employees is based on
the requirements of the organization to undertake steps in order to improve the productivity of
the organization (Harrison and John 2013). Therefore, the employees are being empowered by
the organization in order to maintain the vision of the organizational excellence through their
respective actions. The company holds the view that the employees are not just stewards of the
company’s vision but also helps the company in upgrading to the different requirements of the
consumers.
Answer to question 3
The external environment of the organization helps in determining the success factors of
the organization in the market. Determining the success of the organization is based on the
economic environment, the social and the technological environments. It helps in determining
the areas of progress that the organization must undertake in order to improve the conditions of

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the company in the market. The financial strength of the company determines the modifications
that the organization undertakes on the requirements of the consumers. The increasing
profitability of the company and the revenues created in the years can be summed up to an
enhanced rate. It permits the company to make its growth and expansion in the business market.
On the other hand, it also determines the situation of the organization in the market structure
(Bryce 2017). On the other hand, the socio-economic structure of the areas where the company
undertakes its functions also determines the different success factors of the organization. The
demographic structures helps in determining the progress of the organization based on the
demands. The economic condition measured in the per capita determines the functions that the
company is required to undertake. The functions undertaken by the organization is based on the
social cultures of the region. The concerned company makes use of the resources in order to
specialize in the production of the yoga-inspired attires. The trends of the modern world and the
importance of yoga are being defined to the people and thereby the people are aware of the
necessity of the activities associated with yoga. Therefore, the needful attires for undertaking the
practices are being designed and specialized by the company in order to hold on to the market.
Therefore, the company undertakes steps in order to promote the yoga-inspired attires among
people who are aware of their personal fitness (Morden 2016).
On the other hand, the technological advancements made by the organization are again
another factor that justifies the success of the organization in the market. The most important
consideration that is being undertaken by the organization is based on the requirement of the
consumers using their product. Therefore, in order to improve the consumer’s experience with
their product and thereby create a brand loyalty for the product. The technological advancements
and the wide range of products undertaken by the competitors of the company might gain over

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the market of the organization and the brand loyalty too. The fabrics that are being chosen and
improvised by the organization helps the organization in maintaining a competitive advantage in
the market.
Answer to question 4
The strategies framed by the organization help in bringing forth improvements in the
structure and the situation of the organization in the market. The formulation of the strategies
determines the credibility of the competitors and thereby brings in modifications in the processes
of the company in order to improve the market situation. The strategies that are being undertaken
by the company are based on their grass root marketing, the quality of their product and through
the undertaking of effective communication. The proper management of the workforce helps in
centralizing the efforts of the company to a point. it affects the success of the company
(Morschett, Schramm-Klein and Zentes 2015). However, on the other hand, the new entrants in
the market are also developing products inspired by yoga, which poses a serious threat to the
company’s success story. The most important step that is being undertaken by the organization is
based on the requirements of the consumers in the market. In order to hold on to the consumers
and thereby retain the brand loyalty, the company takes steps in order to monitor over the
products and the processes that are being undertaken (Goetsch and Davis 2014). Moreover, the
new line of products that are being recently used by the company helps the organization in
coping up with the competitors in the market. Therefore, the steps that are being taken by the
company and the strategies that are being implemented helps in sustaining the company in the
market. The risks that are involved in the implementation of the strategies are based on the
validity of the strategies in the international markets. The introduction of the new product faces a
threat from the existing competitors in the market. On the other hand, the company itself faces a

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risk due to seizure of the market by the new entrants. It affects the availability of the products in
the market and thereby brings down the market share of the organization.
Answer to question 5
The continuous growth and expansion of the company is based on the flexibility of vthe
usage of the resources. The flexible usage helps in undertaking steps in order to enhance the
situation of the company in the market (Stead and Stead 2013). The concerned company for this
report aims at manufacturing the yoga-inspired attires. Yoga has become a trend of the world for
the people who are concerned about their health and well-being. Therefore, the company
supports the cause of yoga through their production process and the product that is being offered
by the organization (Keupp, Palmié and Gassmann 2012). The most important consideration that
is being undertaken by the organization relating to the needs of the consumers is based on the
developments of the product that is facing elevated demands. The company has brought in
modifications in the material of the garments adhering to the needs of the consumers. However,
the company faces challenges in the undertaking of their actions, which are based on the
activities of the new entrants and the existing competitors (Rothaermel 2015). Moreover, the
high price of the commodities that are being provided by the brand also poses a threat to the
availability of the products in the market. It also affects the situation of the company in the
market due to the undertakings of the competitors.
The recommended actions that the company must undertake are based on then product
offerings. The company must take steps in order to improve the availability and the proper usage
of the resources and thereby bring down their prices in order to make the competition more
validated in the market (Peteraf, Gamble and Thompson Jr 2014). The company must also

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monitor over the quality of the products, which will help the company in retaining the brand
loyalty among the consumers in the market. The most important steps that the company must
undertake are based on the requirements of the organization to make use of the favorable
processes in order to bring in the modifications in their plans. The other functions that the
company must take in order to bring in improvements are based on the empowerment of the
workforce through proper training and thereby instilling the vision of the organization in them.
The empowerment of the employees helps the organization in making the steps easier for its
growth (Lasserre 2012). The employees helps in the undertaking the smooth functioning of the
business; therefore, skilled workforce will help the company in achieving the most awaited
success.

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References
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hair, J.F., Sarstedt, M., Pieper, T.M. and Ringle, C.M., 2012. The use of partial least squares
structural equation modeling in strategic management research: a review of past practices and
recommendations for future applications. Long range planning, 45(5), pp.320-340.
Harrison, J.S. and John, C.H.S., 2013. Foundations in strategic management. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Keupp, M.M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews, 14(4), pp.367-390.
Lasserre, P., 2012. Global strategic management. Palgrave Macmillan.
Morden, T., 2016. Principles of strategic management. Routledge.

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Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management.
Springer.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Peteraf, M., Gamble, J. and Thompson Jr, A., 2014. Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Stead, J.G. and Stead, W.E., 2013. Sustainable strategic management. ME Sharpe.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.

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Appendix
Appendice 1
Figure 1: The situation of Lululemon
(Source: Hair et al. 2012)

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Appendice 2
Figure 2: Financial condition
(Source: Hair et al. 2012)