Lululemon Athletica Inc Value Chain Analysis can be used in the competitive strategic decision-making process. 1. Although Lululemon was initially established to satisfy the apparel needs of adult women who practice yoga, the company has widened its definition to …show more content… C-79). 3. 2. Innovative products increase brand loyalty from the existing customers and; Novel products give new customers a reason to buy the Lululemon brand. Lululemon attempts to differentiate themselves from competitors through the use and implementation of multiple different methods and strategies. 24, 2019-- Building upon a year of considerable growth in 2018 and having already delivered on several of its key 2020 goals, the Company is meeting with investors and analysts today to outline its growth strategy for the next five years. Want your bar or restaurant to live up to its true potential? Does this strategy give it an advantage over its rivals in the athletic clothing business? You could do a lot worse than to take a page out of the marketing book of Lululemon Athletica, which has managed to grow its brand into an impressive $10 billion empire. Lululemon is based in Canada and it offers premium quality athletic apparel in different kinds of prices. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals’ cost structure. If so, how? Mr. Neumeier explains, "Differentiation, the art of standing out from the competition, is not front-page news. Strategy of Lululemon For broadening its market scale, Lululemon decides to open up the new market out of North America by setting new stores in Australia, Europe, and Asian. 1.1.4 Formulate effective firm-specific strategies. How would you describe Lululemon's market segmentation strategy? ... Pricing Strategy. Five-year growth plan aims to “double men’s, double digital, and quadruple international” revenues NEW YORK--(BUSINESS WIRE)--Apr. The prices of Lululemon are mostly premium in nature. Who do you think are Lululemon's typical customers? Untapped potential to a larger market Marketing Strategies from Lululemon: A Billion Dollar Empire. It’s clear Lululemon practices what designer Marty Neumeier preaches in his book, Zag: The #1 Strategy of High-Performance Brands. Lululemon has been experiencing financial profits and gains in recent times with implementation of its focused differentiation strategy. b) continuing to expand the brand globally through international expansion. Differentiation. Strategic objectives for lululemon inc. do not include a) exploring new concepts such as stores that are tailored to each community. How Lululemon increases the barrier of entry and lowers the threat of new entrance: Innovation is the front and center of Lululemon’s strategy in creating the brand and product differentiation. The company is having its own chain of stores. to Lululemon’s strategy, which has propelled it to become a $1 billion retailer in less than 15 years. At the same time, Lululemon also pays more attention to its original business region and growing the stores in North America to increase its market share. The company can find different ways to develop differentiation leadership, such as- by focusing on the reliability, durability, benefits and distinctive features of products, by developing strong brand recognition and by increasing expenditure on marketing efforts like celebrity endorsements and sponsorships etc. Introduction Lululemon's Problem Internal Problems Underlying Problem External Problems Recall on Lululemon's yoga pants in 2013 Inflated prices compared to competitors Narrow Target Market "Elevating the world from mediocrity to greatness." Lululemon’s competitive strategy is broad differentiation due to the company expanding its target market and product line. 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