Lululemon Casestudy

 Lululemon Casestudy Essay


Lululemon Athletica, Inc.

Analyzed by simply:

A. Professional Summary:

Lululemon Athletica Inc, created as lululemon athletica, is a self-described yoga-inspired athletic attire company, which usually produces a clothes line and runs worldwide clothing stores from its organization base in Vancouver,  British Columbia,  Canada. The corporation was founded simply by Chip Pat, a yoga exercises enthusiast, more than a decade ago. The company started out as a shop selling Yoga exercise fabrics and a facilities of practicing yoga. Lululemon has spent considerable time and energy building its manufacturer identity and company tradition, which has triggered loyal clients and personnel. Consistent with the industry�s mission of " offering people with the component to live a longer, more healthy and more fun life”, lululemon executives desired to promote and ingrain a set of core principles centered on growing the high quality products, functioning with sincerity, leading a normal balanced your life, self-empowerment and self-responsibility, positive inner advancement and specific goal setting. The company has made proper decisions to produce this traditions in its message and as a part of its shop growth, brand identity and product offerings. 5 years after starting the 1st retail store, it had been apparent that lululemon clothing was fast-becoming something of a cult phenomenon and a status symbol among yoga enthusiast in locations where lululemon shops had opened. In 12 , 2005, with 27 company-owned stores, 2 franchised retailers and record sales en route to $85 mil annually, Chip Wilson offered 48% of his involvement in the company's inventory to a number of private equity shareholders led by simply Advent Foreign Corporation and Highland Capital Partners. In 2007, the company's owners elected to take the organization public and IPO happened with the company selling 2, 290, 909 shares. Stocks began trading on the NASDAQ and Toronto Exchange. In January 2008, Christine M. Day joined up with the company because executive vice president, retail businesses. Previously, she had act on Starbucks, Asia Pacific Group, North America Finance & Administration in a variety of sizes and positions including director. In July 2008, she was known as CEO and member of the BOD. Organization founder Nick Wilson moved down by his professional position although continued his role of chairman from the BOD. You can actually growth and success over next five years had been impressive by simply any standard: sales profits climbed speedily toward captal up to $1 billion annually, share price got risen coming from $2. twenty-five per discuss on 03 9, 2009 to close by $64. 58 per discuss on March 3, 2012… The company's useful and stylish clothes had used on " must have” status between growing numbers of fitness mindful women. The organization announced their growth technique with a few elements: grow the company's retail outlet base in North America, Boost brand recognition, introduce cool product technologies, broaden the benefit of lululemon companies expand further than North America. The lululemon supervision as well as investors and business analysts were considering the next top priority issues: - How long the lululemon athletica sensation would last and whether the company can keep its current performance in the foreseeable future. - Whether or not the growth and expansion technique of the business in the international markets can be successful. -- Whether the company could carve out a sustainable market position for by itself in the health and athletic apparel market, especially against such rivalling names as Nike, Beneath Armour, adidas and Reebok.

B. Analysis and Evaluation:

I. Five -force Research:

1 . Threat of recent Entrants into Performance-based Yoga and Exercise Apparel: Risk of New Entrants is low because of large hurdles of entry. The industry is usually categorized by large capital requests, entry to distribution programs, large economies of scale and product distinction. New entrants requires spending a whole lot...