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Malika Seidova 14669 BIS Nadhirah Mohd Nasir 15063 BIS Juan Andres M. Elonga 13971 ICT

Lecturer: Mr. Abu Baker Sedek b. Abd JamakGCB 3103/GBB 3103 STRATEGIC MANAGEMENTApril 16, 2014lululemon athletica inc.Agenda

IntroductionBackgroundVision, Mission & ObjectivesProblem statementInternal AnalysisSWOTExternal AnalysisPEST Analysis5 Forces Model5 Generic Competitive StrategiesInternational StrategiesCorporate-level StrategiesEmployee management & motivationStrategic Issues / ProblemsRecommendations

IntroductionCompany HistoryFounded in 1998 in Vancouver by Chip Wilson.The company designs and produces more appropriate yoga apparel products.The 1st store was opened in Kitsilano in year 2000.The store was meant to be a community hub where people learn and discuss the physical aspects of healthy living from yoga.Target all ages, primarily active men and women: Individuals that work, play and share the vision of creating healthier, happier and more fun lives.

IntroductionCompany History ContVision: Elevating the world from mediocrity to greatness and become the number one women's athletic apparel brand. Mission: Creating components for people to live a longer, healthier, more fun life. providing a community with a wellness in each of its stores.Objectives: To train their people so well that they could in positively influence their families, communities and the people walking into their stores. And to increase the number of male customer through the existing ones.

Internal Analysis: SWOTExternal Analysis: PESTExternal Analysis Cont Five Competitive Forces Companys five generic competitive strategiesPursues a strategy of focused differentiation, concentrating on a consumer segment concerned with health and fitnessThe business strategy is to brand the company as conducive to a particular way of living by offering free yoga classes to employees and customers, creating an ambassador program, and emphasizing the sustainability of their operations.

Companys five generic competitive strategiesStrategic sales programs partnering with yoga and fitness facilities in order to feature Lululemon yoga equipment and apparel in studios

Companys five generic competitive strategiesLululemon uses both backward vertical integration and forward vertical integrationHas never pursued a horizontal integration strategy; they are a vertically integrated retailer involved in design, marketing, distribution and retail stages of the value chainAlso vertically integrated in their e-commerce business

Companys five generic competitive strategiesProduction is the only activity that is outsourced to low cost countries49 % - in China41% - in South East Asia3% - in CanadaRemainder in US, Peru, Egypt

International StrategiesCompany follows a Global strategy for their international businessHas stores in North America, Australia and New Zealand, with showrooms carrying key styles in North America, Europe and AsiaCompany utilizes the overarching themes of fitness and positivity to reach customers in regions, rather than tailoring the approach for local markets

Corporate-Level StrategiesLimited level of diversification in productsBusiness is based upon production and sale of both fitness apparel and equipment for yoga and Pilates

Employee management and motivationLululemon has created a new program called "Fund a Goal," which was designed to eventually pay for high-performing employees to achieve one of the goals on their list.All of Lululemon's employees are given opportunities to attend fitness classes at local gyms in the area

Strategic IssuesStrategic Issues & RecommendationsRecommendationsRecommendations