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Lululemon Athletica

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Lululemon Athletica
Lululemon Athletica Case Study
I. Executive Summary

Statement of problem and recommend action

Lululemon is a rapidly growing company with a different niche for its products. Its philosophy as well as their business model has allowed them to increase revenue over the past years. The dilemma they faced is how to continue expanding without losing their special niche, grassroots and a nontraditional feel of the brand that sets them apart from their competitors. In order to do so, it has been recommended that they partner up with well-known retail stores such as Macy’s and Nordstrom. It has also be recommended that a representative or educator from Lululemon remains at the store at all times or that the retail stores (partners) allow Lululemon to provide training to the employee(s) assigned to cover the pre-determine area. This new venture would yield an increase in revenues of a rate of 2.3 – 2.6 % per year, starting in the third year. The cost of implementing this project will impact the balance sheet and income statement. However, it is expected to be an investment that will increase revenue and sales while reducing cost. This new alternative will allow Lululemon to increase their sales, reach to new customers, all while maintaining a great level of the unique business model that they are known for.

II. Current Situation Analysis

Mission/Vision Statement Lululemon Athletica Inc is one of the leading manufacturers of yoga clothing and accessories. What sets Lululemon apart from other sportswear manufactures is that almost its entire line is focused on yoga gear. They are also known for having a special niche and nontraditional feel to their brand. Lululemon is guided by the company’s mission statement, which intent is to provide people with the components needed to live longer, healthier, and a more fun life. The company strongly believes in creating a define culture, a unique way of doing business, and direct interaction with the



Cited: “Lululemon Athletica, Inc. Annual Report.” Security Exchange Commission. SEC, 29 Jan, 2012. Web. 19 Oct. 2013. “Lululemon Athletica, Inc.” MorningStar. MorningStar. 2013. Web. 19 Oct. 2013. “Nike, Inc.” MorningStar. MorningStar. 2013. Web. 19 Oct. 2013. Swift, Ryan. “Lululemon Athletica.”St. Edwards University. 17 Apr. 2012. PDF File. “The Lululemon Manifesto.” Lululemon. Lululemon Athletica, 2013. Web. 19 Oct. 2013. “The Lululemon Vision.” Lululemon. Lululemon Athletica, 2013. Web. 19 Oct. 2013. “Under Armour Inc.” MorningStar. MorningStar. 2013. Web. 19 Oct. 2013.

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