Hey guys! Whatâ€™s your next research on? Is it the lululemon case study? Are you tensed about how to approach the topic?
Well, donâ€™t worry at all. Before going for the case study, you should first be completely aware of the topic. You should have a clear idea about â€œLululemonâ€, the company. Lululemon internal analysis is very essential to make a successful case study.
Lululemon is a retail brand that sells athletic clothing that is inspired by yoga. It sells several categories of clothing like athletic menâ€™s and womenâ€™s wear. The brand has become quite popular in the retail market and steps are being taken to grow its sales. A proper lululemon analysis is necessary to know the strengths and limitations of the brand so that options for growth can be practiced.
An analysis of lululemon
The first step to be covered in the lululemon case study should ideally be analysis the strengths and weaknesses of the company. So, let us study in detail about the company and the lululemon strategy analysis.
Strengths of the company
- The balance sheet of the company is strong
A lululemon case study shows that the company has a good balance sheet. They have no debts and their finance is in good condition. This has all the probability of repurchasing company shares in future. The good quality of flow of cash and strength in its finances is one of the major strengths of the company.
- The category of clothing is getting popular
The category of clothing sold by the company is the biggest answer to lululemon case study questions about its progress. People today are becoming more and more conscious about their fitness. In the present day culture, there are a lot of people who spend hours in the gym and yoga classes to keep themselves fit. This gives rise to the requirement of appropriate clothing which might give ease while exercising. This is the basic reason for the fame the brand has acquired.
- Craze for the brand
The target buyers of the brand are the independent women who are conscious about their health and are educated with high income. The brand keeps trying to attract more customers by coming up with fresh designer garments that will ease the body while exercising. This is why, even during hikes in the prices, the brand has been capable of maintaining its sales.
Weaknesses of company
- Perception about the brand
The lululemon case study reveals that people are aware of the fact that the brand is for the athletic, fitness oriented people. This often limits the customers to the brand. The people who are enthusiastic about buying other categories of garments do not chose to buy from the brand. This in turn results is low sales.
- High priced products
One of the major lululemon case study questions is why are the products high priced. The answer is that the brand spends a lot of capital on researching and developing to manufacture the best products in terms of fabric quality, fit, cuts etc. This in turn results in high pricing of the garments. It might not be a limitation when it comes to the target audience but it might be a serious drawback when the company decides to expand customer base.
Probable opportunities of the company
- Expansion with variety of products
The main products of the company are pants for women. The company is thus planning to expand its business by coming up with more variety of womenâ€™s tops that can be worn while exercising. Another clothing category that is being worked upon is the menâ€™s athletic wear.
- Expanding internationally
The basic sale of the garments from the brand is in North America. According to the lululemon case study, there are plans where the company wants to expand its market to Europe and Asia. This can be a possible area for growth of the company which if tapped and be helpful in the improvement of the companyâ€™s sales.
Possible threats to the company
If a proper lululemon case study is made, you will learn that the only threat that the company faces is its competition from the competitors. There are several other athletic wear brands that are almost at par with lululemon. The high prices of the brand might serve as a real threat to the companyâ€™s products.
After a lululemon case study on the various aspects of the company, let us now learn about the points that contributed to the success of the brand. A few such points are mentioned below-
- The brand made a unique mark for itself. There are various other brands that sell athletic products, but lululemon created a separate niche for itself. All of us want to use something that is one of a kind. This is what made the brand stand out and become popular.
- The company came up with garments that had unique utility. There are several garments available that are used for festivals or casual wear. But an appropriate garment for fitness freaks was a unique selling point.
- Most athletic fashion brands spend a lot of money to advertise their garments by celebrities. This demands a huge capital. On the other hand, lululemon made a smart move by choosing normal people from the real world to market their products. This had two positive effects. One, the brand was being promoted by people with whom the consumers could relate to; two, this method was effective on the companyâ€™s cost.
- The stores of lululemon have a unique system of knowing their customerâ€™s name. This gives a sense of bonding while the customer is shopping in the store.
- The brand encourages customer feedback a lot. Not only this, each complaint or compliment that a customer pays is addressed personally by the company.
All these aspects have made lululemon a successful brand. I hope my guidance towards the lululemon case study has been helpful and you will be able to benefit from it. I wish you all the best wishes to carry out a successful research in future.