How innovation, omni-guest experiences and market expansion made Lululemon a winner during the pandemic. Canadian athleisure brand Lululemon Athletica increased its value by 40% in 2020 [2], despite prolonged shop closures and quarantine restrictions. padding-top: 150px; The workload is a high per worker as there are fewer workers than the actual work required. On top of that, it also focuses on increasing the market share. European Journal of Forest Research, 126(3), 413-420. } Shenzhen. Lululemon sees inventory accuracy as crucial to its goal of delivering the optimal consumer experience. It has a strong financial position with positive profits reported in the past few years. The qualitative analysis of Lululemon's competitive advantage in a competitive apparel industry. Meanwhile, Lululemon, has not stop building for the future [13], remains focused on being ready to serve its customers and support its communities [14] and will use its balance sheet to look ahead and continue to plan for growth while managing the business for day-to-day [15]. #section_1749395338 .ux-shape-divider--top svg { color: rgb(255, 255, 255); This will ensure that employees dont leave and join competitors (W3, T4). The company generates strong earnings during the pandemic after recent expansion into men, digital, and international markets. They are now able to report real-time inventory across all stores. WebIntegration: Lululemon Athletica Inc's current structure and culture have resulted in the failure of various mergers aimed at vertical integration. Its an important trade off, especially relevant in the post-COVID scenario! Types of market integration. It is an important strategy as the highly seasonal fashion industry requires quick responses to new trends. WebThe Number 3 brand strategic business unit is a cash cow in the BCG matrix of Lululemon Athletica s Product Employee and Public Relations Issues. would have to spend less on training and development, therefore, saving costs. This fast fashion system depends on a constant exchange of information throughout every part of Zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. HBS Working Knowledge (https://hbswk.hbs.edu/archive/zara-s-secret-for-fast-fashion). We wont bug you too much because thats more work for all of us. Inventory levels in excess of demand can cause write-downs that has and will continue to affect its margin. Every morning I write an email discussing the business and money behind sports. Very interesting analysis Giulia.