Lululemon Company Case Study
The company was initially located in Vancouver in Canada but it has expanded its boundaries to other areas. For Lululemon Company to achieve greater market coverage, it needs to work and relate well with the First Nations and also their adjacent municipal governments. In particular, the company intends to work with the Haida community because of their great artwork. Therefore, they can partner to enjoy excellent benefits (Jones et al, 2010). History of Haida Nation Majority of the Haida community memebers live in Haida Gwaii. They are appointed by the electorate through affair election together with four other representatives. The community has frequently been involved in land disputes over island of Haida Gwaii. On island of Haida Gwaii, there are two Haida villages; Old Massett and Skidegate (Fedge & Mathewes, 2011).
Lululemon Company intends to have a good relationship with the Haida Nation government council through the Band Council Resolution (BCR). The company wishes to consult the local economic development officer for it to abide by the band and community by laws. They lived in villages, and each village had a representative. Marriage is considered and for one to marriage, he had to intermarry from the other sub-division. The high population of the Haida Nation will create enough market for the company's products. The high population will also provide skilled labor to the company. Economic Development The main economic activity of the Haida people was commercial fishing and logging. Lululemon Company is looking forward to having a good business relationship business with both The Haida Nation and also the community government.
The company will comply with all the regulations of the government while carrying out business (Von & Suzanne, 2013). Project/ Business Development Document 2. 1 Indigenous Business Strategy Since it is time the company is planning to engage first nations in business, the company does not have an original business strategy, but I am writing one. The business strategy will include how to increase the market of yoga cloth wear, expand its market, acquire new clients, brand projection, creating awareness about the brand. More stores will be opened in Vancouver and even in Squamish where the majority of the Haida people live. The company also wishes to open online stores where clients can buy products and have them delivered right at their doorstep. (iii) Creating Awareness In collaboration with the Haida people and the adjacent municipal, the company will generate awareness of its new yoga pants designed in Haida artwork through the use of billboards and local media.
The company intends to use different means to create awareness for potential clients. Some of the ways the company plans to use are the use of social media. The company will provide the community's team with costumes designed in the Haida artwork and have the name of the company on the uniforms. It is an opportunity since the team the company will be sponsoring will be advertising the company's products. When the team wins, the company will also share in the glory of the company. The team can buy its costumes from Lululemon at a subsidized price thereby increasing its sales and product awareness (Fedge & Mathewes, 2011). Possible Projects that Lululemon intends to Undertake To achieve successful business development, the company in collaboration with the Haida community wants to carry out the following projects.
The company will also ensure it pays taxes and complies to the municipal requirements. It will help the municipal to provide the Haida people with social amenities. The company will involve the chiefs by giving them a description of where the company intends to set up the business and also provide them with a business summary of the company. (iii) Creating a joint venture for a project on their land The main reason why it is important for Lululemon Company to have a joint venture with the Haida community is to obtain assets and skills for its business. In the British Columbia, unresolved land deals encourage non-aboriginal business to partner with the First Nations. First Nations enjoy tax-exempt status where they also enjoy preferential bidding processes.
The company firm works with the community's cultural perspective. It also provides the First Nations with assurance and audits to ensure business growth. The firm has helped has helped the non-aboriginal customers to work with the First Nations organization (Von & Suzanne, 2013). The other successful business project is the Harvard Project. If Lululemon reduces its prices to be too low, the company can make a loss (Fedge & Mathewes, 2011). Failure to engage First Nations in business strategy has risks also. Lululemon Company can be faced with the risk of lacking customers due to failure to engage First Nations. The local governments can also mount pressure on the company not to operate on their land. The company can also be imposed with heavy taxes to compel it to involve the Native people.
Having realized this, I researched and I found that the Haida community prefers their indigenous name. It is therefore important for the company to address them using them using indigenous names while communicating with them. The tone should be friendly. However, if it is difficult to use pronounce the indigenous names, it is better to use English but first explain it to the community. First nations will not be offended if an explanation is given instead of wrong pronunciation of the indigenous words. The proposal will also include terms and conditions for both the community and Lululemon Company. (iii) Hold a meeting with the stakeholders Lululemon management plans to hold a meeting with the Haida community council. It will help to formulate on the way the company and the community will work together.
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