Major Facts Lululemon Athletica is a successful company that is popular for its work out clothes. In particular its special luon fabric is very popular among its customers. Unfortunately, in 2013 the quality of the luon material did not reach expectations, with 17 percent of the inventory being detrimentally affected. Lululemon experienced a significant amount of negative feedback from this incident affecting everything from its brand to a drop in their stocks. Major Problem The luon material is a very advanced material that is made from a limited source of textile. In addition, it is also made from a limited manufacturer in Taiwan. Lululemon became aware of the issues that having limited suppliers can have on their brand especially if …show more content…
This will help them to increase their negotiating power with suppliers while providing the company security in times of unplanned events such as poor quality. An increase negotiating power will give the company more options when selecting suppliers and the price at which they are willing to pay for these suppliers to manufacturer their product. Furthermore the will gain security because if there is an issue with one supplier who cannot produce the product or the quality of product they will have other suppliers to rely on. However, with having multiple suppliers the company should work on improving their quality test procedures that will be standard to all suppliers. In addition, it will help to detect sheer material before it is ready to be …show more content…
In my opinion the best way to implement the first recommendation of having multiple suppliers is for the company to research and contact all the suppliers who have the capacity to build the technically advanced textiles used in the luon fabric. They should then proceed to have a reverse auction from many different suppliers to see which supplier gives them the best deal. Next they should select their top tow suppliers in addition to their current supplier and have some manufacture the technology-advanced textiles that make of the fabric and have other manufacture the fabric. The second recommendation of creating a risk and contingency plan can be done by researching best industry practice for this type of plan. Next Lululemon should then analyze the past issues they had and how they dealt with the problem. As they plan ahead they should try and decipher what possible risk may occur and come up with ways in which the company will minimize these risk from happening or ways in which to deal with them once they happen. I strongly believe that by implementing the risk and contingency plan will significant help the company deal with future problems in a more efficient and effective
Since 1998, Lululemon has transformed the way people dress to workout. Through innovative products and technical athletic fabrics, a brand was created to provide clothing for workouts such as yoga, running and cycling. Lululemon opened its first store in Vancouver in 2000 with the plan to have the store be a community hub for people to learn and discuss their physical fitness and overall health goals. As Lululemon was more than a store to provide products for consumers, their goal was to influence every person who walked into the store. A basic criterion for investment is Lululemon’s mission to create components for people to live longer, healthier, fun lives. All Lululemon locations maintain strong relationships with local communities and host in-store events such as complimentary yoga classes and goal-setting workshops.
C-79). The company is also offering products and apparel intended for other healthy and athletic lifestyle pastimes rather than solely for yoga. These include swimwear, which were introduce for women in fiscal 2013 and men in the spring of 2014, dance apparel through its ivivva brand, as well as expected golf and tennis products (Thompson, 2014, p. C-80). Additionally, Lululemon offers such products as gear bags, water bottles, caps, gloves, headbands, and socks. This supports the company’s core component to “broaden the lululemon product line beyond yoga, running, and general fitness (specifically swimming, golf, and tennis) and include offerings for both males and females of many ages” (Thompson, 2014, p. C-79) for its fiscal 2014 business strategy. This indicates that the senior administrators of Lululemon have been transitioning the company’s competitive strategy from having a narrow market focus just on yoga
These individuals come from educated and sophisticated backgrounds and socioeconomically fall within the middle to upper class. This target customer won’t buy new clothing based on the fact that it might be worn out or too old, they buy habitually in order to keep up with the latest trending styles and innovations that money can buy. “Other than their poise and perfect coifs, you can identify members of this gym robot army by their brand of clothing. You’ve seen them at your gym, at the Whole Foods and in line for green juices; they’re the Lululemon ladies and they’re fancy as fuck.” (Blisstree) This consumer segment is also very brand and status orientated, and therefore views and wears Lululemon as a status symbol of high end and high quality, athletic
Lululemon Athletica is a yoga retail store; it is a textile apparel clothing company founded in 1998. Lululemon is located in the United States as well as Vancouver, British Columbia, Canada. Lululemon opened their very first store in November of 2000, in the beach area of Vancouver BC called Kitsilano. Originally, Lululemon idea behind the store was for it to be a community where people could learn and discuss about healthy leaving through and yoga and their diet. However, it was impossible to help every customer that way since the store was very busy. Instead, Lululemon shifted their focus on educating their staff so well that they would able to positively influence the customers, their family and people around them in their community. In the beginning, their goal was only to have one store, but in the long run that changed and now they have multiple locations all over the world. The name Lululemon came from a survey they conducted.
Founded by Chip Wilson in 1998, Lululemon opened a new business, which mainly provide athletic wear for women yogis. The company focused on community interaction, where yoga lovers can share their physical and mental living styles to fulfill a healthy life. The original vision of Lululemon is “ to elevate the world from mediocrity to greatness by embracing social, environmental and economic health in every part of our organization and global communities.” Lululemon was attractive to a large number of yoga lovers. However, in March 2013, the company suffered from quality control that was 17% of its popular black Luon pants (sold for roughly $100 each) had problems with sheerness. After several months, two window displays disappointed
The Body Shop International case is an interesting case study into the miscommunication of owners and stockholder interests with regard to financial conditions. Anita Roddick, the founder of The Body Shop had no financial experience and thought that all she needed to do was expand her business and the financing would take shape as she developed her business. While Anita’s product concept of a natural skin-care line was good; her lack of experience in financial matters took its toll on her business.
The importance of accurate cost allocation is an essential component to the manufacturing process. Explain the types of problems companies encounter during the allocation process, include specific examples as part of your answer.
Lululemon positions itself by exploiting its points of differentiations. Hence, Lululemon focuses on women as well as innovative technology, high quality materials, functional apparel to bring fashioned luxury athletic apparel to this industry, which doesn't have many high-end products. Thanks to unique positioning, Lululemon has figured out how to create a niche market within the athletic apparel industry. It also differentiates itself from it rivals by providing one of a kind product offering in term of high-performance apparel, stylish. Figure 1 outlines Lululemon's unique positioning. It focuses on the customers' beliefs and values. This permits the brand to develop value based on how the products satisfy
The LED shirts are considered machine-washable, devoid of wires or other electronics that interfere with the comfortable level of the athlete: this alone isn’t seen in other LED-like t-shirts sold by other companies, to include Nike. Because of this premium and innovative design, Under Armour is able to price the product higher than the competition because nothing else like it is available in terms of comfort, efficiency, and ease-of-use for
When Lululemon first started out they did not do a whole lot of advertising. It was mostly word of mouth and of course the bags that they gave their customers, with a lot of inspirational phrases all over it, when they purchased something from the store. They depended on the positive vibes that a person feels when they enter their establishment. “They’re selling emotion and happiness and joy and feeling good about yourself, … and when companies keep their eye on that in a more focused way, and less on the features of the product, their chances of being a successful brand just go through the roof.” (https://www.referralcandy.com/blog/lululemon-marketing-strategy/) Recently Lululemon has branched out into the global advertising world. There
The company concentrates on the sourcing of soft goods (mainly clothing); it also sources hard goods such as handicrafts, home furnishings, shoes, sporting goods, and toys. Li & Fung has an extensive network of suppliers, particu...
A collection of information regarding different suppliers can help in determining the best supplier or make a shortlist for a particular product or service. Retrieving information from a database is also easier rather than researching on a complete business profile. Information can also be easily updated and compared if need be.
The main objective of our company is to obtain customer utmost satisfaction by serving their demand with exclusive and high quality fabrics. The product making involves continuous process. To keep it non toxic and environmental friendly, we use quality dye and ink for the purpose of dyeing and printing the logo and design. All our material and...
Indian clothing industry has the capacity to supply a wide variety of clothing products suitable to different market segments not only in India but also across the world.
...ot famous enough. I have come to the conclusion that they are more expensive than the general clothing brands. Also, since they invest a lot of money in a sustainable production of their products, they cannot afford big marketing campaigns, such as the ones that the dominant clothing brands already have.