The paper "Lululemon Competitive Environment" is a great example of a business assignment. The apparel and especially the Yoga industry has numerous competitors. Some of the competing manufacturers are Nike, VF Corporation, and Adidas among others. Lululemon’ s products are expensive (premium) compared with the other products in the market. Consumers can prefer the competitors’ products to lululemon’ s because of costs and other economic fundamentals (Hitt, Ireland and Hoskisson, 2015). In addition, the other manufacturers understand the yoga market is increasing because of consumers’ preference to yoga, meaning more entrants and the current manufacturers can improve the quality of the products, which may affect the capacities of lululemon.
Moreover, lululemon does not communicate with customers through marketing and other communication challenges. The company relies on word-of-mouth and ambassadors to win or retain customers. This ideological and strategic approach is different from industry standards in which different marketing and communication approaches are employed to win and retain the customers. Even though lululemon employs a different approach from standards of price margins and advertising approach, the company has numerous avenues of competitive advantage.
The most important is the culture cultivated and spread to “ guests” – customers (Hitt, Ireland, and Hoskisson, 2015). It means lululemon utilizes internal culture to influence the consumers and make the consumers acquire the products and services. Through the process, the consumers become loyal in the yoga apparel industry. In addition to culture and loyalty, lululemon enjoys benefits accrued from brand image and reputation for high-quality products (Priestley, 2015). Moreover, lululemon collects information and data from ambassadors who have a direct engagement with current and potential consumers. The ambassadors can collect information directly from the consumers, which are transmitted to the design and management sectors of the company.
Hence, further developments and designs would rely on advises, opinions and comments from the consumers. Based on an analysis of the internal environment, discuss the company’ s capabilities, and core competencies. Does lululemon have any weaknesses that can impact its ability to compete in the future? Design and technology Design and technology are the core competence that the company relies on to create and develop high-quality products (Lindstrom, 2012). Lululemon analyses the markets through the use of ambassadors and utilizes technology to develop products and services that reflect the requirements of the consumers.
The movements and extensive testing of the materials and usage during yoga defines additional adjustments to reflect the changing dynamics and expectations of consumers (Hitt, Ireland and Hoskisson, 2015). The inclusion of e-commerce in selling highlights the importance and appropriateness of technology in expanding the market, and reducing costs of fulfilling the needs and requirements of consumers e. g. brick and mortar established will not be required in Africa so that the yoga shorts can be accessed by a customer. Leadership and financial management The leadership style and capacities define the success of any organization.
Experience and skills are crucial and bringing together a team of individuals having different capacities and competence are crucial. The lululemon top management and leadership are made of independent executives and individuals having experiences from different fields. These executives have been picked from similar industries and also have been in the service industry and apparel industry for a long time. The type of leadership influences the financial management of lululemon. Compared with competitors, lululemon has a better financial statement: for example, lululemon does not have debts while the cash ratio of the entire assets is 50%.
It means lululemon has enough finances to guide any investment proposal and address easily any operation concerns. The lack of debts shields lululemon from interest rates and other financial/economic dynamics.
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