Essay On Lululemon

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nmental Scan and Risk Analysis Lululemon has different competitors with a number of other companies in the apparel space, which are Nike, Reebok, Adidas, Athleta, and Under Armour. Lululemon increased to prominence by marketing yoga pants for women at a much higher price point, which is almost $100 more than prevalent in the market. Lululemon Athletica has been associated with the rise of yoga wear, particularly yoga pants, as a casual dressing option rather than a niche clothing item for sports (Dorothy E. Wu, 2013). Lululemon Athletica’s competitive advantage rested on the combination of the company’s powerful brand and its ability to charge a premium for athletic wear at a time when many other apparel retailers were attempting to compete on price.…show more content…
First of all, Lululemon is like Starbucks, is highly reliant on its brand strength to be able to continue charging such a high premium for what are essentially commodity items. The brand has taken some hits over the past few years, with some highlights including, the departure of founder Chip Wilson from the board; the company’s inadvertent creation of see-through yoga pants in 2013; and mounting critique over Lululemon Athletica’s refusal to market to the overweight and obese, who now constitute a substantial majority of consumers in both the United States and Canada (Thomas, 2015). In addition to these company-specific risk factors, each of which has made a contribution to brand dilution, Lululemon is also subject to general economic conditions. Although the economic crisis is over, there are indications that apparel consumers have adopted a more economical approach to discretionary spending, a trend that could hurt Lululemon in the long

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