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.
After implementing more such strategy and increasing their customer base they can approach companies for funding for an aggressive marketing to compete with big giants like
Primary components of Lululemon’s value chain: Supply chain management Operations Distribution Sales and marketing Service + Lululemon does not have its own manufacturing facilities so it takes great care in selecting its vendors that help the company to share Lululemon’s value. + This company sources its products and fabrics from 22 countries around the world, including Canada and USA + There are 70 active cut and sew facilities -They are design and development process.
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.
As in 2014, Lululemon’s business strategy had seven key elements: Firstly, Lululemon needs to broaden the product line beyond yoga, running and general fitness, and offer product for both male and female of many ages. Nowadays, more people start to concern on their health, not only elder people. They need to have good-looking and convenient outfit for exercise and training. Second element is to grow the store in North America and United State. These locations are very potential for any company because netizen in these locations have high income which can afford to such products like Lululemon.
Lululemon is recognized as one of Canada’s fastest growing brands. As of 2016, there are 48 stores located across Canada and a total of 354 stores worldwide (Statista, 2016). Their vision was to create a place where people could buy products while also immersing themselves in a community of likeminded individuals who value health living, mindfulness and living a life of possibility. The goal for Lululemon is to expand their product and community vision into the country of Russia. We wish to build upon the recent growth in yoga services and work to continue to bring the people together in practice.
Lululemon Athletica is an athletic apparel company founded in a Canadian yoga studio in 1998(Lululemon, n.d.). " [I]nspire you to live #thesweatlife every day" is their slogan(Lululemon, 2018). According to the website, they mainly focused on Five core values. The first is personal responsibility: honesty and integrity built the foundation of lululemon. They committed that fully responsible for the choices and the consequences they bring.
Nike, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. Nike offers products in eight categories: running, basketball, football, men’s training, women’s training, sportswear, action sports, and golf. They also market products designed for kids, and many other recreational sports. As of November 30, 2015, their profit margin is 11.55%, with revenues roughly $31.34 billion. Some of Nike’s key competitors for women’s clothing are Lululemon, Adidas, and Under Armour.
Company Overview NIKE, Inc. is the leading athletic footwear, apparel and equipment company in the world today and continues to grow globally. NIKE is dedicated to inspire every athlete to reach their potential and continue to commit themselves to innovation, sustainability and design. NIKE strives for innovation that serves the athlete, continue the growth of the company and deliver inspiration to everyone that uses their products. NIKE, Inc. includes five distinct brands which are NIKE Brand, Converse, Inc., Hurley International LLC, Jordan Brand and NIKE Golf. Each of these brands reaches out to different groups of people worldwide and expands NIKE's market.
As you requested, I have researched and weighed the advantages and disadvantages of the potential merger of our company with Lululemon Athletica for the upcoming fiscal year. For the purpose of providing assurance to our Board of Directors on this business plan, intensive efforts were made to thoroughly understand the current standpoint of both companies, in regards to both financial and corporate cultural bases. If Under Armour acquires Lululemon, they will gain a larger female target audience that Under Armour was once lacking, and therefore be able to gain more market share in the athletic apparel industry as well, fending against competitors like Nike or Adidas. The collaboration between two companies will also provide for cultural synergy
While they may not always stick out, their marketing team always seems to find new ways to stay
1. Introduction Under Armour, Inc. (Under Armour) is a leading sports apparel and equipment manufacturing company founded in 1996 by Kevin Plank, a 23-year-old former University of Maryland football player.. He revolutionized the sports apparel industry by creating a superior, moisture-wicking, performance T-shirt, made of synthetic fabrics. Under his leadership, the company grew from a 17,000-dollar business in 1996 to a 4.83-billion-dollar empire. 2.
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
Internal Analysis When conducting an internal analysis you must know the firm’s resources and capabilities. Nike’s resources are assets from succeeding in their industry. These resources include financial resources, physical resources, human resources and organizational capabilities. Firms Resources & Capabilities: Human Resources-. The company displays a strong workforce of over 30,000+ employees.
Company Description Nike believes diversity and inclusion drives innovation that lead to a competitive advantage. Nike has a broad base of suppliers that actively and significantly support their business requirements. Nike’s Global Procurement team manages the procurement process, including selecting and contracting with the right suppliers for the right goods and services. They have also begun to reduce Nike 's footprint and lessen their impact.
