Lululemon Business Level Strategy Essay
NONSUBSTITUTABLE
Nonsubstitutable capabilities are capabilities that possess no strategic equivalent. As a firm becomes more difficult to substitute, the strategic value of capabilities increases. Lululemon Columbia
TYPES OF BUSINESS LEVEL STRATEGIES A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. The purpose of a business-level strategy is to position itself differently from those of its competitors. Firms choose between five business-level strategies to set themselves apart from their competitors: Cost leadership strategy, differentiation strategy, focused cost leadership strategy, focused differentiation strategy and integrated cost leadership/differentiation strategy.
DIFFERENTATION
Columbia Sportswear uses a differentiation strategy. They use this strategy by taking action to produce goods and services that aren’t like the competition. Columbia is extremely cheaper than any of their competitors but produce just as great of quality as them.
FOCUS COST LEADERSHIP Lululemon is an example of a company that focuses on a particular market, in this case, the fitness market. The company differentiates itself by providing high quality clothing to a growing …show more content…
The company has stores in North America, Australia and New Zealand, with showrooms carrying key styles in North America, Europe and Asia. To access the countries they do not currently have stores in, the company offers shipping to the Middle East, Africa, and South and Latin America, in addition to the countries they operate stores in (Lululemon Athletica, 2013). Lululemon has consistent branding and standard products offered across regions; the company utilizes the overarching themes of fitness and positivity to reach customers in regions, rather than tailoring the approach for local
Nonsubstitutable capabilities are capabilities that possess no strategic equivalent. As a firm becomes more difficult to substitute, the strategic value of capabilities increases. Lululemon Columbia
TYPES OF BUSINESS LEVEL STRATEGIES A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. The purpose of a business-level strategy is to position itself differently from those of its competitors. Firms choose between five business-level strategies to set themselves apart from their competitors: Cost leadership strategy, differentiation strategy, focused cost leadership strategy, focused differentiation strategy and integrated cost leadership/differentiation strategy.
DIFFERENTATION
Columbia Sportswear uses a differentiation strategy. They use this strategy by taking action to produce goods and services that aren’t like the competition. Columbia is extremely cheaper than any of their competitors but produce just as great of quality as them.
FOCUS COST LEADERSHIP Lululemon is an example of a company that focuses on a particular market, in this case, the fitness market. The company differentiates itself by providing high quality clothing to a growing …show more content…
The company has stores in North America, Australia and New Zealand, with showrooms carrying key styles in North America, Europe and Asia. To access the countries they do not currently have stores in, the company offers shipping to the Middle East, Africa, and South and Latin America, in addition to the countries they operate stores in (Lululemon Athletica, 2013). Lululemon has consistent branding and standard products offered across regions; the company utilizes the overarching themes of fitness and positivity to reach customers in regions, rather than tailoring the approach for local