Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

SGMA lululemon athletica inc.

No description
by

Carin Eggertson

on 6 March 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of SGMA lululemon athletica inc.

lululemon athletica inc.
Miranda Beckie, Kyo-Jean Chung,
Carin Eggertson, Kayla Nagorski,
Jordyn Troyer & Elif Zehir

Strategic
Alternatives

Strategic Challenges
Strategic Options
Opportunities
Strengths
PEST Analysis
Five Forces Model
External Analysis
Political
Tax Incentives
Patents and trademarks used in fabric and apparel design
Protecting products from imitation

Economic
Consumers are price sensitive

Social
Trend towards health consciousness
Concern for ethical product sourcing
Expectation of safe environmental standards

Technological
Increased market reach due to internet capabilities
Technologically advanced textiles
Customer relationships
Community involvement
Quality athletic apparel
Strong brand recognition
Growth in yoga industry
International expansion
"Quality is at the heart of everything we do, from the technical features we (sometimes literally) weave into our products, to the people we work with and relationships we build."
(lululemon athletica inc., 2012b, para. 1)
Vertical integration
Research and development
Increase breadth based on strategic group map analysis
Increased community involvement to increase new demographics
Targeted marketing for specific segments of consumers
Professor Liena Kano
SGMA 591– Lecture 05
November 29, 2012
Introduction
First store in Vancouver, BC
Expanded internationally
Vision Statement:
"To elevate the world from mediocrity to greatness" (lululemon athletica inc., 2012a, para. 1)
Core values: identified within Manifesto
Strategy: Focused differentiation
Key Issues:
Reliance on third-parties in manufacturing process
Target market is very narrow
Internal Analysis
VRIO Analysis
Corporate approach that focuses on community involvement
In-store yoga sessions or running clubs
The ‘doing-the-right-thing’ initiative
lululemon community ambassadors

This resource provides a competitive advantage
Not resistant to imitation
Community involvement encourages customer loyalty at a premium price level
Strategic Group Map
External Analysis
...
Value Chain
Analysis
Weak relationships with suppliers
Limited suppliers
Heavily reliant on third-party manufacturers
Third-party quality inspection
Eco-friendly distribution program
Grassroots marketing approach
Internal Analysis
Equity Financing
Gross Profit Margin
Below industry average 51.4%
Fell from 53.7% in 2008 to 49.3% in 2010
Recovered to 56.9% in 2012
Customers reducing premium item purchases
Good portion of revenue is available to cover operating expenses and yield a profit
lululemon commercial
Thank you!
Namaste
Weaknesses
Weak relationships with suppliers
Product recalls
Threats
Economic Recession
Negative publicity
Dynamic Industry
Analysis
Changes in who buys the product
Product and marketing innovation
Changing societal concerns and lifestyles
Key Success Factors
Consumers willing to pay premium for quality products and service
Lean operations ensures effective and efficient allocation of resources
Agenda
Introduction
External Analysis
Dynamic Industry Analysis
Key Success Factors
Strategic Group Map
PEST Analysis
Five Forces Model
Internal Analysis
VRIO Analysis
Value Chain Analysis
SWOT Analysis
Financial Performance Analysis
Strategic Alternatives
Recommendations & Implementation
lululemon Commercial
Final Thoughts
Above industry average of 3.4 consistently
Reported 5.3 in 2012
Strong sales and projects an upward trend
High ratio can be attributed to seasonal and limited edition product lines
Inventory Turnover
Financing through revenue produced from operations, share offerings, or equity financing
Current ratio industry average of 2.84
Reported 5.10 in 2012
Accounts Receivables Turnover industry average is 9.4
Reported 139.8 in 2012
Debt-to-equity industry average is 0.09
Reported 0 consistently from 2008-2012
$400 million U.S. in cash reported in 2012
Investments could be made
Free cash flow represents cash generated after dedicating funds to maintain or expand its asset base
Reported as substantial and continuously growing
Outperforming competitors
Cash Flow
Recommendations & Implementation
Improve relationships with suppliers
Quality fabrics from a trusted source
Vertical integration of value chain
Research eco-friendly options
Understand manufacturing process and costs associated with ownership
Broaden target market
Philosophy of yoga promotes healthy mind and body regardless of how it is achieved
Community programs to target youth and seniors
Final Thoughts
Source: http://www.youtube.com/watch?v = IMC1_RH_b3k
Source: lululemon athletica inc.
Source: lululemon athletica inc.
Threat of
Substitute Products
Weak to
Moderate
Threat of New Entrants
Weak to
Moderate
Bargaining Power
of Suppliers
Moderate to Strong
Rivalry Among Existing Firms
Strong
Bargaining Power
of Buyers
Weak
Internal
Analysis
Full transcript