Business Environment and

Ethics (601)

Topic: Lululemon
Case Study

Diksha Sharma (1911697), Jaswinder Kaur Cheema (1911208), Vidhya Kannan

(1910128), Navjot kaur saggu (1911536)
Professor Gelareh Farhadian
26th July, 2019.
 History
• Founded in Vancouver, Canada.
• In 1998 by Chip Wilson
• Lululemon is a technical athletic apparel
company for yoga, running, training and most
other sweaty pursuits.
• Produces apparel for women and men

info.lululemon.com
 Very low

High
Bargaining
power in the
industry

Very high No threat of

www.Fern Fort University.com Not Intense substitutes
 Threats of New Entrants

The • Fairly difficult to achieve for other companies.

economies
of scale

The
product
• Weak within the industry.
differentiat
ion

The capital • Large investments.

requiremen
ts

Low entry • Less legal responsibility.

barriers
(Murphy, 2018)
 Bargaining Power of Suppliers

• The number of suppliers in the industry in

which Lululemon operates is a lot compared
to the buyers.
• Easier for buyers like Lululemon to switch
suppliers.
• Multiple suppliers within its supply chain.

(Murphy, 2018)
 Bargaining Power of Buyers

1
Threat of
being
substituted.
2
Advantage of its
economies of
scale

(liii, 2017)
 Threat of Substitute.
• Few substitutes.
• Buyers are less likely to switch to substitute
products.
• Lululemon focus unique benefits.

(Murphy, 2018)
 Rivalry Among Existing Firms

• A positive Industry growth.

• Lack of differentiated products.
• High exit barriers.
• Market research

(liii, 2017)
Q-2 Conclude a VRIO analysis of
lululemon?
 VRIO stands for –
Value of the resource,
Rareness of the resource,
Imitation Risk,
and
Organizational Competence.
by Jay B Barney
 VRIO
Value Rareness Imitation Organizational

Competitive
The Humility yes yes NO advantage
employees

Not well
yes yes Very
organised
The Patents Difficult

Very well
Distribution yes yes Difficult organised
Network

(Perry 2018)
 References
• Ewan Murphy (2018). Lululemon Athletica Inc.
Retrieved from
https://www.essay48.com/term-paper/2946-Lululemon-Athletica-Inc-
Porter-Five-Forces

• Fern Fort University. strategic management tool.

Retrieved from
http://fernfortuniversity.com/term-papers/porter5/analysis/732-
lululemon-athletica-inc-.php

• Laurianne (2014). Discover the clevest brand strategies.

Retrieved from
https://behindjeans.wordpress.com/2014/10/31/porters-five-forces/
 References
• Lululemon athletic (1818). The History of Lululemon.
Retrieved from
https://info.lululemon.com/about/our-story/history

• Liii.s (2017). integrative-business-management.

Retrieved from
https://www.studocu.com/en-ca/document/british-columbia-institute-of-
technology/integrative-business-management-practices/mandatory-
assignments/lululemon-sample-case-analysis/3229192/view

• Perry .A (2018). Lululemon Athletica Inc Moving Forward With Humility

Retrieved from
https://www.case48.com/vrio-case/12451-Lululemon-Athletica-Inc---
Moving-Forward-With-Humility
Thank you!!