Amazon is an incredibly large and successful company, which has recently become the third largest retailer in the world (Gensler). Despite being such a large company, Amazon has not dabbled very much in brick-and-mortar retail, besides their very recent purchase of Whole Foods. Since Whole Foods is a grocery store and they have many freestanding stores, it is easy for Amazon to introduce new features that can be successfully implemented because of their overlapping markets and accessibility, whereas Lululemon relies on mall traffic and a smaller market. It is difficult for many to be a part of the clothing retail industry, since it is such a highly competitive industry that can change at the drop of a hat. Especially for a company like Amazon; that has only operated online until very recently, it would be much more difficult for them to penetrate this new market and keep Lululemon afloat. …show more content…
It is a very large company covering many types of markets, which can be useful to the company since they can cater to many types of consumers, but it can also be dangerous if they overstretch and fail in too many areas. They own many other companies and websites all ranging from grocery stores, to video game sites, to e-book platforms (Subsidiaries) and it seems like they do not have a clear focus or goal with their company. Since Lululemon is not like something they already have, it seems like they are spreading themselves too thin and putting a lot of money in too many different areas, which could eventually lead to the demise of the company. Amazon just recently spent 13.7 billion for Whole Foods, while whole foods stock share was $42 a share (La Monica), meanwhile now Lululemon’s share is $64 per share (Lululemon Athletica Inc.). So, not only would it be risky for Amazon to be spreading itself too thin by entering this market that is new for them, but it will also cost the company a lot of