1.How strong are the competitive forces confronting lululemon in the market for
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Question
1.How strong are the competitive forces confronting lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. 2. What does your strategic group map of the performance sports apparel industry look like? Is lululemon well positioned? Why or why not? 3. What do you see as the key success factors in the market for performance-based yoga and fitness apparel? 4. What does a SWOT analysis reveal about the overall attractiveness of lululemon’s situation? 5. What are the primary components of lululemon’s value chain? 6. What are the key elements of lululemon’s strategy? If you have previously covered the Under Armour case, what features of lululemon’s strategy stand out as being different from the strategy at Under Armour? 7. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that lululemon is employing? 8. What does the data in case Exhibit 1 reveal about lululemon’s financial and operating performance? 9. What 3-4 top priority issues do Christine Day and lululemon management need to address? 10. WhatrecommendationswouldyoumaketolululemonCEOChristineDay?Ataminimum,yourrecommen- dations should cover what to do about each of the top priority issues identified in question 9. 1.How strong are the competitive forces confronting lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. 2. What does your strategic group map of the performance sports apparel industry look like? Is lululemon well positioned? Why or why not? 3. What do you see as the key success factors in the market for performance-based yoga and fitness apparel? 4. What does a SWOT analysis reveal about the overall attractiveness of lululemon’s situation? 5. What are the primary components of lululemon’s value chain? 6. What are the key elements of lululemon’s strategy? If you have previously covered the Under Armour case, what features of lululemon’s strategy stand out as being different from the strategy at Under Armour? 7. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that lululemon is employing? 8. What does the data in case Exhibit 1 reveal about lululemon’s financial and operating performance? 9. What 3-4 top priority issues do Christine Day and lululemon management need to address? 10. WhatrecommendationswouldyoumaketolululemonCEOChristineDay?Ataminimum,yourrecommen- dations should cover what to do about each of the top priority issues identified in question 9. 1.How strong are the competitive forces confronting lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. 2. What does your strategic group map of the performance sports apparel industry look like? Is lululemon well positioned? Why or why not? 3. What do you see as the key success factors in the market for performance-based yoga and fitness apparel? 4. What does a SWOT analysis reveal about the overall attractiveness of lululemon’s situation? 5. What are the primary components of lululemon’s value chain? 6. What are the key elements of lululemon’s strategy? If you have previously covered the Under Armour case, what features of lululemon’s strategy stand out as being different from the strategy at Under Armour? 7. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that lululemon is employing? 8. What does the data in case Exhibit 1 reveal about lululemon’s financial and operating performance? 9. What 3-4 top priority issues do Christine Day and lululemon management need to address? 10. WhatrecommendationswouldyoumaketolululemonCEOChristineDay?Ataminimum,yourrecommen- dations should cover what to do about each of the top priority issues identified in question 9.Explanation / Answer
1. Strength of the competitive forces facing lululemon (fitness apparel)
Five force analysis:
Level of competition: Medium to strong force, and lululemon is becoming stronger nd stronger as the time goes by; Lulumen has the competitive advantage over its rivals in terms of the quality of the product, design style, fashion, performance metrics, comfort in wearing them, varieties and models in product line, depth and width of the product – horizontal and vertical product lines, brand position and the image name with reputed fame.
They also gets stronger by means of highlighting the difference between one line of branded products from other lines. Appropriate matching between the supply and the market demand for performance based apparel and fitness clothing’s by lululemon;
Porters 5 force analysis:
The 5 significant forces of power are:
1. Power of the Supplier
When we have very less suppliers, then when the supplier increases the prices, we do not have much options left – rather when we a have a pool of suppliers, when one suppliers rises the price we can resort to another supplier.
2. Power of the Buyer
Whether the buyer, customer or consumer can bring the price down is determined by the quantification of this power. Similar to the number of suppliers, as a supplier, when we have less buyers then we are forced by their choice of reducing the prices rather when we have a larger pool of buyers, then when one buyer reduces the price, as a supplier, we can resort to other buyers.
3. Rivalry competition
How many rivals we have? What our rivals are capable of doing? Can they offer the products and services that we are offering? If so, then, we may lose our base of suppliers and buyers. But if we have some exclusive product that nobody else can offer, then we stand out with an advantageous edge.
4. Threat faced due to the substitution products
Tea can substitute Coffee. Lamb may substitute Chicken. When the rivals of lululemon can introduce apparel that can substitute lululemno’s merchandise then they are threatened. Possible threats can be from Target, Coles Myer, David Jones and other similar merchandise suppliers.
5. Threats from new entrants into the markets
Any new company, start ups , dynamic and young players entering the apparel industry can pose a threat to lululemon but due to the brand power the lululemon stands out.
2. Strategic group map of the sports apparel industry and
Whether lululemon is well positioned or not:
Given the evidences above that it is clear that lululemon is well positioned in the market.
3. Key success factors in the market for fitness apparel and performance based y:
Quality materials, attractive design, style, and fashion, competitive pricing
4. SWOT of lululemon:
Strength: Elegant design, style
Weakness: Variety
Opportunity: Wide range of market segment
Threat: New entrants, substitute products
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