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Exploring Lululemon's Compliance With Legal And Regulatory Issues

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On March 18th of 2013, after months of customer complaints, Lululemon, an athletic wear company, removed its black legging yoga pants made from luon fabric from its stores and inventory. This was due to faulty recent shipments that were said to have not met the company’s quality standards. As the company attempted to resolve the scandal they replaced the faulty product with new product said to have higher quality testing that is now better than ever before. However, customers continued their complaints and the company denied their culpability. This resulted in the company being entangled in social media debacles and a lawsuit from their stakeholders. Lululemon did identify their risk factors before the scandal. The company had a limited number …show more content…

The lawsuit from their stakeholders claimed that Lululemon made false and misleading statements by failing to disclose the issues with the luon fabric. They claimed Lululemon did this to cut costs and raise profit margins much to the detriment of product quality and brand reputation. (Smith, 2013) If this is true, this demonstrates inadequate compliance with legal and regulatory issues as they made false claims to their stakeholders for their own financial gain. Lululemon failed to demonstrate ethics, principles, and values. They failed to do so by denying their customers complaints and claims and blaming them for the company’s shortcomings. This behavior goes against the unspoken rules, i.e. principles and values, that responsible companies adhere to. Companies should not blame their customers for quality issues within their products. Lastly, Lululemon has demonstrated little philanthropic activities. Through research on the internet, I could only locate recent demonstrations of philanthropic activities from the company starting in 2021. Despite the company being established in 1998. By reading this analysis, it seems as Lululemon was, and may still be, focused solely on becoming one of the largest retailers in the Unites States. Rather than focusing on how to create a better world and community for

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When you buy a product from Lululemon, it is not solely the physical product you are paying for. You are also paying for the design, construction, and craftsmanship of the product. Lululemon uses designer prints and many different types of fabrics for their products. Some products are brushed which gives them a soft feel. Other products are reversible, some have unique textures or water repellant finish.

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Overall, I don’t know how I feel about Lululemon’s product for a high price. I know fitness gurus that praise the company’s products mentioning the high quality of their product. I also know that there are many other comparable quality products out there that is half the price or less. I’m also glad that founder, Chip Wilson, is no longer affiliated with Lululemon. He did not seem like a great CEO at that time, and I’m glad the current CEO took over.

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Lululemon can be considered a Shopping Product. Lululemon provides high-quality products so their products life circle is long. Another reason is their products are expensive for some people, so consumers are rarely to buy their products. Store image is very important to the Lululemon because they want to create the brand loyalty. Lululemon is not distributed so widely.

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 Lululemon fully depended and worked on retail model, as well as management team relied on customer feedback to make changes.  Employees would also give instructions how they were supposed to rearrange the product each week. Moreover, employees were instructed to wear athletic outfits.

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Government policies supporting active and healthy lifestyle can have effect on Lululemon. With growing market, there will be opportunity to grow. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. It is opportunity for Lululemon.

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But, this also convinces consumers who want to buy the product that the items will be high end and durable. They’ll have a lot of use out of Lululemon because of how much money they are

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Lululemon needs to maintain their high quality in order to gauge more customers from their existing brand

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