Lululemon Case Analysis

Table of Contents

Introduction………………………………………………………………………………………..2

Five Forces Analysis………………………………………………………………………………2

Strategic Group Map………………………………………………………………………………4

Key Success Factors………………………………………………………………………………4

SWOT Analysis…………………………………………………………………………………...5

Value Chain Components………………………………………………………………………....6

Lululemon’s Strategy……………………………………………………………………………..8

Lululemon’s Competitive Approach……………………………………………………………...9

Financial and Operating Performance…………………………………………………………....9

Issues to Address…………………………………………………………………………………11

Recommendations………………………………………………………………………………..12

References………………………………………………………………………………………..13

Introduction

Lululemon got its start when Chip Wilson took the “first commercial yoga class offered in Vancouver, British Columbia, and found the result exhilarating” (Thompson 96). His realization of cotton clothing not being the best material for the type of workout led to the design of the yoga apparel that was light and form fitting and included moisture wicking fabric. He partnered with local yoga instructors and got them to wear and advertise the apparel which received positive responses. That led him to open the first Lululemon store in Vancouver in November 2000.

Chip wanted the store to be a place for people to get together and discuss healthy living, not just purchase the yoga apparel. However, his clothing was so popular that they didn’t need to focus on that. After operating under a single store, Chip decided to expand into multiple stores as well as become a key factor for women in the athletic apparel market. Tow years later the company expanded into the US and eventually ended up in Australia. Lululemon was so successful in its first few years that malls were reserving space for them to open more stores and continue growing their business.