Lululemon: Management Information System

ADMS 2511. Management Information System
Section Q Raqib Ibrahim
Prof. M.Zia ul Haq 215251754 Case Assignment 1
Question A
i) Data items: Example of Data in Lululemon case is sales over $1 billion. Data item is a set of description which gives information but does not convey a meaning. ii) Information: As stated above the sales resulted in over $1 billion but actually the 10 percent of those sales were from the Internet store. This information conveys that increase in total sales resulted from 10 percent increase in Internet store. iii) Knowledge: The increase in overall sales resulted due to company’s innovation with new fabrics and designs. Moreover, free yoga classes which helped them attract new customers.
The reason data items

Vocollect Voice technology is helping them save time and cost as shipments will be organized automatically in stores and distribution center, via the technology just by giving voice commands to the system.
b) Management Information system: Lululemon using product life management system is helping them analyze their product life cycle efficiently. It is easier to assess which product stands where and what marketing strategies they need to conduct in future to increase the sales for the particular product.
Question C
Supply Chaining: Creating yoga lines is an example of supply chaining. As they must have given production unit to a specific supplier which produces all the clothing supplies for Lululemon
Outsourcing: Lululemon using Vocollect voice technology is an example of outsourcing as they are using their services via their networks in order improve communication and speeding up the process in their distribution centers
Question D
Porter’s Competitive Forces Model
*Threat of New Entrants: Providing free yoga classes in Lululemon store is a very unique service provided by any clothing manufacture. This strategy is not easy to implement for new entrants as initially they need to invest a lot of money in providing free

This will create competition among the suppliers. Hence it gives an added advantage to Lululemon and they now can find a supplier who is willing to sell them at the least price.
*Bargaining price of customers: As stated in the case article, that synthetic factors are now easily available among other companies. This will create more choice for the customers as now they will tend to buy from a store which is selling at a cheaper price. This can be easily searched via Internet
*Threat of substitutes: Web internet is a threat to Lululemon as their potential customers can look up the price of other yoga clothing brand and prefer them over Lululemon. In order to combat this threat, price needs to be very competitive and high quality.
*Rivalry among existing firms: As stated, Nike and Gap also have athletic clothing similar to Lululemon and these companies are multinational and known around the globe. Even if their prices are little higher compared to Lululemon, people will stay prefer buying from them due to the brand image and reputation they possess in the market. Lululemon needs to maintain their high quality in order to gauge more customers from their existing brand