Case study lululemon athletica inc

is a retail company based in Canada that offer athletic apparel at a premium price. As per the annual financial reports, the company is in a strong financial position. According to the company’s ratio, it is clear that the company has more assets than the current liabilities which, is essential in enabling the company to meet the short-term obligations. The company has a large market size despite the controversies that the company faced several times regarding the quality of the products. The company faces numerous challenges and risks in the competitive market. In regards to the intensity of rivalry, the rivalry is not intense because the sales segments are still growing and the company can even earn profits with excellent products and robust capabilities.

The Strategic Group Map of the Performance Sports Apparel Industry Lululemon Athletica Inc. operates in a competitive environment. The company operates under the oligopolistic market structure since there are a few numbers of sellers. The company faces strong competitions from companies such as GPS, Adidas, Nike and Under Armour. The company plans to upsurge the yoga apparel sales globally. The core business strategy of Lululemon is product differentiation and consumer segmentation in which, the company focuses on the fitness and the health of consumers. The company provides consumers and employees with yoga classes to increase awareness. The company’s executive conducts a critical market survey through store visits to observe the consumers’ behavior. The company treats the customers as guests rather than buyers which, enables them to build up a good customer relationship.

The company should come up with a differentiated product to address the financial crisis. It is crucial for the company to maintain the commercial environmental standards in the business process that they operate. The company initiated the e-commerce business to support the customer base globally. The company launched the new products for men in various countries, and it also has a strong brand recognition in the apparels for women which, gives the company a broader customer base. The ability of the company to penetrate the new market faces various risks. The linking across the value-adding activities of Lululemon produces a high margin that offers significant protection to the company against the competitors’ actions and competitive options. Consumer relation enables Lululemon to provide superior values in terms of richness, reach and affiliation dimensions.

For the company to continue maintaining success in the focused differentiation strategy, it should increase the values of the competitive diplomatic sources of the company. The Key Elements of Lululemon’s Strategy Going into 2017 The company has come with different approaches to ensure the growth of the company which, includes the introduction of new products in the existing market. The company develops the new products that are in trend with the current consumer preference and distribute the products in areas where they cannot assess the outcomes. The company attains the sustainable competitive advantages due to its market segmentation and unique products. The company supplies different sportswear products for both men and women which, has a significant advantage in the market (Craver, 2018).