Business Policy and Strategy: Lululemon Athletica Inc.
this is BUSINESS POLICY & STRATEGY. and the company is Lululemon
Here are some of the highlights regarding what is needed to be done for the first assignment. 5-6 pages. (6 is for references; ok to go to 7 or 8 but please avoid a 10 page paper). I am not concerned about the format for resources, but please provide the url so I can access it if need be. Please put your name on your paper, and your last name in your file name. Font 12; 1.5 or 2 in terms of spacing. Save as a .doc format only please
Include a paragraph that gives an overview of the company.-Lululemon
Next is the Porter model analysis (please read through the text on the model and use your notes from class). Include High Medium Low where appropriate regarding bargaining power, (suppliers buyers) risk of entry and industry competition. Are they a consolidated industry or fragmented?
Don't forget to include compliments and substitutes along with answering the question - are there a lot of a little of them. (Again if you want you can use high medium or low) instead of a lot or a little.
Next is the macro environmental factors that applies to your company. You don't have to cover all of them but make sure you pick the ones that are important for your company. (Covid is a bid deal for many companies). Use of technology, demographics groups etc.
Position within the industry life cycle (your opinion)
Conclusions with your opinion on the top issues from your analysis. Please no recommendations until the third paper, just the issues.
References (any format is fine)
I will grade the papers on organization, quality of content, grammar and sentence structure. (yes spelling counts).
So some advice, run spell and grammar check before submitting papers. Organization and quality of content are weighed the most for grading.
Using subtitles is a good idea to help organized the paper.
If you include a chart make sure it is relevant and you explain it. (Remember it is using up space)
Please avoid using bullets. (Great for presentations, but not for papers.)
Lululemon Athletica Inc.
Name
Institution
Course Code and Title
Instructor
Date
Introduction: Company Overview
Lululemon started as a shop that sold yoga pants and wear founded in 1998 by Chip Wilson. The brand provides outstanding products of soft textured yoga clothing giving consumers comfort during workouts. The customer base increased forcing the brand to expand its clothing products and started selling sweaters, jackets, undergarments, and tops, also, the brand started selling personal accessories. Later the brand started selling fabrics such as ‘Luon’ as it continued to grow the brand based in Canada globalized in 2014 and currently, it has over five hundred stores outside Canada. Despite the success of the company, there are internal and external factors within and without the industry that affect an organization's performance in terms of profitability and competitive advantage (Rinn, 2023). Using Porter’s five forces, this paper will analyze the industrial position of Lulumen and its competitive position. Additionally, an analysis of the macro-environmental factors that affect the operations of the textile apparel company.
Porters Model Analysis
Threats of new entrants
New companies entering the textile apparel industry create the pressure of being innovative as a way of remaining competitive. Hence, the force is high considering the existence of other strong brands such as Nike and Adidas that have an established market share. Also, there are small brands that provide the same offerings of yoga and athletics products thus the market is saturated. However, Lululemon leads in athleisure through its ability to innovate products, therefore, the brand can lower the threat of new entrants through innovating products that promote its brand loyalty and through differentiation (Rinn, 2023). Also, the brand can increase its productivity by efficiently managing the costs as a way of increasing its profitability. Products should be researched and developed before production since new brands have a low ability to invest in this thus a way of maintaining brand loyalty through quality assurance and standards management.