“TO ELEVATE THE WORLD
FROM MEDIOCRITY TO
GREATNESS‘’
MISSION
• WE CR EATE TR ANSFOR MATI VE
PRO DU CT S AND E XPE RI ENC ES TH AT
BU I LD ME ANI NGF UL C ON NEC TIO NS,
UNLOC KIN G GR EATE R PO SSI BI LI TY
AND WE LL -BE IN G F OR ALL.
• V ISI ON S TAT EMENT
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• Double revenue from men's
products by 2026.
STRATEGIC • Double digital revenues by
2026.
OBJECTIVES
• Quadruple international
: revenues by 2026.
• Expand retail store footprint,
especially in China and other
international markets.
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Personal Responsibility
Connection
CORE Inclusion
VALUES
Fun
Courage
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VALUES
INNOVATION IN PRODUCT SUSTAINABILITY AND COMMITMENT TO FOCUS ON CUSTOMER
DESIGN AND PERFORMANCE. COMMUNITY-BUILDING. EMPOWERING WELLNESS AND RELATIONSHIPS AND
MINDFULNESS. PERSONALIZED EXPERIENCES.
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Direct Competitors:
• Nike
• Adidas
• Under Armour
Indirect Competitors:
• Fast-fashion retailers offering
activewear (e.g., H&M, Zara).
• Lifestyle brands incorporating
athletic wear into their collections
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SUBSTITUTES:
• Generic activewear brands (lower price points).
• Non-specialized athletic apparel from retailers like
Target or Walmart
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Political
• Tax policies
• Employment laws
• Trade policies PESTEL
• Regulatory changes
Economic
• Inflation
• Exchange rate
• Unemployment rate
• Global economic conditions
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Social
• Age
• People's attitude towards fitness
• Demography of the area
PESTEL
Technological
• E- commerce
• Social Media and Digital Marketing
• Mobile Technology
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Environmental
• Climate Change
• Waste Management
• Resource Scarcity
Legal
• Data Protection Laws
PESTEL
• Environmental Laws
• Intellectual Property Laws
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12
• Key Competitors: Nike, Adidas, Under Armour, Athleta,
Nordstrom, Urban Outfitters, Victoria’s Secret
• Fierce Competition:
• Nike: Inclusivity, consumer perception leader, innovative
INDUSTRY
• Adidas: High-tech performance, diverse offerings
RIVALRY
• Under Armour: Comfort, philanthropy, community focus
• Lululemon: Pioneer in athleisure, targeted focus
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13
THREAT OF
SUBSTITUTES
• Low Threat Level:
• Substitute: Loose plain apparel
• Switching Costs: Low to none
• Lululemon Advantage: Comfort,
performance, premium pricing
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14
Moderate Threat Level:
Barriers: Established brands, strong
reputations
THREAT OF
NEW
Pandemic Impact: Rise in athleisure
ENTRANTS demand and influencer marketing
Lululemon Strength: Premium brand, first-
mover in athleisure
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Weak Buyer Power
Target Audience: Affluent, fit,
professional women
BUYERS
BARGAININ Lululemon’s Premium Image:
G POWER Exclusivity and status symbol
Customer Loyalty: Community-
building and premium experience
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16
SUPPLIER’S BARGAINING POWER
Weak Supplier Power Transaction Model: Order-by- Supplier Relations: Close
order, no long-term contracts relationships, stronger buyer
position
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Market Trends & Consumer Behavior:
• Rise of athleisure for functionality, comfort, and
style
• Pandemic Impact: Casual wear boost
• Sustainability: Consumer demand for eco-
DRIVING conscious brands
FORCES IN Economic & Global Factors:
THE • Inflation’s impact on profitability and spending
INDUSTRY Branding and Marketing Strategies
• Lululemon’s Differentiator:
• Community-based marketing
• Authentic brand ambassadors
• Diverse content for market expansion
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18
COMPETITIVE
OVERVIEW
• Revenue and Store Presence:
• Nike: $46.7B, 1,045 stores
• Adidas: $28.4B, 1,860 stores
• Lululemon: $8.5B, 700+ stores
• Under Armour: $5.9B, 435+ stores
• Global Reach: Presence across six regions
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19
Financial
statement
Analysis
[Link]
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Important Resources & Capabilities
Resources Capabilities
• Strong human assets and intellectual capital. • Innovative product design and development.
• Brand recognition, patents and customer • Ability to expand more and obtain favorable
relationships. rates from institutions as the company is
• Community based marketing and brand building financially healthy.
strategy. • Providing steady flow of new inventory to retail
• Well trained local fitness practitioners as brand stores in United states, China and Europe
ambassadors. through the facility of distribution centers.
• Strong financial position with cash and no • Attract more product sales, trials and repeat
borrowings on the balance sheet. customer visits through soft-sell customer
centric environment and community-based
• Owned 310,000 square foot distribution centers in
marketing.
Ohio and six leased distribution centers.
• Strong and committed supply chain network with
adhere to Lululemon’s code of conduct.
• Company values and culture.
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Differentiation Strategy
1 Distinctive Products 2 Premium Brand
Lululemon offers high-performance, innovative clothing Positioned as a high-end participant in the athleisure
blending functionality with style. market.
3 Customer Experience 4 Justified Pricing
Stores act as community hubs, offering personalized Higher prices align with perceived value of quality and
services. lifestyle.
[Link]
International Expansion
1 Entry Strategy
Lululemon had operated temporary showrooms in certain
locations as a means of introducing the lululemon brand
and culture to a community
2 Target Markets
Operates through 665 company-owned stores
in 18 countries and robust online presence.
3 Challenges
Adapting to cultural differences and managing supply
chain logistics.
[Link]
Competitive Landscape
Global Giants Local Brands Price Sensitivity
Lululemon competes with Nike and Faces competition from regional Premium pricing strategy may face
Adidas in international markets. players like Li Ning in China. challenges in price-conscious
markets.
[Link]
First Mover Advantage
Market Pioneer
Lululemon recognized and dominated the premium
athleisure market early.
Product Innovation
Introduced exclusive fabrics and features before
competitors.
Lifestyle Brand
Established a unique identity beyond just selling
sportswear.
[Link]
