Lululemon Athletica

666 Words2 Pages

Lululemon Athletica
Introduction
According to stokes (2009, p. 17), Lululemon was founded in 1998 by Chip Wilson in CANADA. The company has grown over the years and owns over 165 stores in different countries such as China, United States, and Australia. The company has specialized in Yoga and provide a line of clothing in different countries. They host different events from free yoga classes to self defence, which are conducted by professionals. This study, therefore, will analyze factors that need to be considered before the company expands into Spain, giving suggestions whether or not it should enter the Spanish market.
Industry Outlook
The industry that Lululemon Athletica is likely to operate in is highly competitive. The industry deals …show more content…

Lululemon Athletica is likely to have a growth rate of 381% with Under Armour coming second at 128.67 and finally Nike at 20.84%. Since the size of the market is expected to grow, revenues are also expected to follow suit. In order for Lululemon Athletica to become a market leader, it needs to engage in development and research to come up with new products (MarketWatch, 2013).
Business Market Segments
The target market of Lululemon can be segmented based on different factors such as demography, geography, and psychography. However, the market is segmented mainly based on demography. Lululemon Athletica mainly targets men and women who have been motivated by personal fitness and health to undertake Yoga and other fitness programs. Spain is also popular for sporting activities such as basketball and football which require their jerseys to be produced and designed (Lamb, 2012, p. 363).
Nature of …show more content…

The company could outsource these services from professional firms at a cost. The firm also has the option of opening retail outlets in different parts of Spain to improve the accessibility of its products. The other firms in the market have adopted an online distribution strategy for its customers to make purchases online. The companies also have superstores in shopping malls and highways to sell their products. Companies like Nike entered into contracts with other retailers to sell their products. Additionally, grey market is one of the challenges facing these firms. However, grey markets can be curbed through developing a comprehensive quality control program and developing a policy handling and inspection of a good. New entrants in the firm face a locked-up distribution channel due to high level of competition. New entrants, therefore, find it difficult to distribute their

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