SWOT is a static assessment – analysis of status quo with few prospective changes. LULU also plans to continue to expand its store build in North America, opening locations in underserved markets. The Lululemon Athletica Inc. While costs associated with product development and geographic expansion may temper earnings growth, we still look for share net to rise at a double-digit pace this coming year, which should help to push the share price higher. Most of these companies have existed for far longer than LULU, and many have a more established market presence and larger operating budgets. They also have products with lower price points. As mentioned earlier even though Lululemon Athletica Inc.

A comparative example could be – GE healthcare research helped it in developing better Oil drilling machines. New trends in the consumer behavior can open up new market for the Lululemon Athletica Inc. The company, based in Vancouver, Canada, was founded in , and now has roughly 11, employees worldwide. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. MIT Press, O.

Fitness-related accessories include bags, socks, underwear, yoga mats, and water bottles. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.

Growing Lululemon: A SWOT ANALYSIS by Katelynn Havener on Prezi

Given the scale of expansion and different geographies the company is planning to expand into, Lululemon Athletica Inc. Amazing Business Data Maps.

lululemon case study swot

They are just awesome. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.


Conclusion We think lululemon has a solid growth story, thanks to its premium brand image and anticipated expansion in North America, Europe, and Asia.

The focus will be on running, training, and yoga as it diversifies its staple offerings and builds out its seamless program. Not highly successful at integrating firms with different work culture. Its efforts to boost its e-commerce platform should also help drive growth. The company has never paid dividends, but this could be another avenue to boost shareholder returns down the road.

Right now the investment in technologies is not at par with the vision of the company. Article continues after advertisement Investment in Research and Development is below the fastest growing players in the industry. The overall casualization of American culture has made it more acceptable to wear casual clothes just about anywhere.

Certain capabilities or factors of an organization can be both a strength and weakness at the same time. LULU also plans to continue to expand its store build in Lukulemon America, opening locations in underserved markets.

Lululemon Athletica Inc. SWOT Analysis / Matrix

Similar products at Nike or Under Armour sell for much less. SWOT is a static assessment – analysis of status quo with few prospective changes. As one of wsot leading firms in its industry, Lululemon Athletica Inc. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. New environmental caes — The new opportunities will create a level playing field for all the players in the industry.

lululemon case study swot

It also faces competition from sellers of traditional commodity athletic apparel, such as cotton t-shirts and sweatshirts. The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Lululemon Athletica Inc.


SWOT Analysis: lululemon athletica inc.

It also generates revenue from outlets, showrooms, and warehouse sales, among others. A comparative example could be – GE healthcare research helped it in developing better Oil drilling machines. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. The matrix is only a starting point for a discussion on how proposed strategies could be implemented.

Another problem the company is facing is that it has struggled to expand its reach past its core women demographic. Its healthy lifestyle inspired athletic apparel is marketed under the lululemon athletica and ivivva brands. Strengths Premium Brand Affinity: Subscribers interested in learning more about lululemon should check out our full-page report in The Value Line Investment Survey.

As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a luullemon matrix. Archived Highlights Dow 30 Earnings: Weakness are the areas where Lululemon Athletica Inc.

Value Line is regarded as the best independent research available. Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.

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