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Lululemon Swot Analysis Essay

1120 Words5 Pages

The SWOT analysis reveals that the major factors that influence the sustainability of the company are related to price, supplier sustainability, economic factors, and awareness. Since the company has continued to experience growth and the brand loyalty is strong even when faced with increasing entrants, Lululemon is attractive overall. However, there are some opportunities that Lululemon should consider exploring to help ensure that sales do not begin to decline and prevent the competition from gaining market share. Also, threats can become opportunities (shift to American manufacturers) and opportunities can become threats (technology use by large athletic apparel companies could benefit others and hurt Lululemon). 1. How important were the contributions of Lululemon’s founder Chip Wilson to company’s growth? Is his exit good for the company prospects? What challenges will Lululemon or the new CEO face without the founder? Founder and former CEO Chip Wilson’s contributions were extremely important for the company and therefore the growth thus far. If Wilson had never created the …show more content…

For example, the New York Times criticized Lululemon’s claims that their VitaSea product line had natural elements such as seaweed incorporated into their products. Lululemon claimed that this line of products would provide healing and relieve stress. When the New York Times analyzed the clothing fibers, they could not find any evidence to substantiate the company’s claims and were ordered by Canada’s Competition Bureau to remove all tags and claims associated with their clothing that natural products provided medicinal benefits. Lululemon had refuted the claims that the New York Times brought forth and were ultimately caught with their tail between their legs which theoretically would have translated into reduced sales. However, sales continued to

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