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BSAM OUTLINE: Lululemon Case

Lululemon, an athletic apparel company based in Canada, faced issues from March to November 2013. The key problem was defective products, as the company experienced negative reviews, executive departures, class-action lawsuits, and lack of management due to releasing yoga pants with quality issues. The best alternative to address defective products was to focus on better quality for products through manufacturing improvements, lower costs by contracting fewer reliable manufacturers, and focusing more on customer needs by expanding apparel lines. The action plan was to ensure better product quality through manufacturer inspections and verifications to prevent another recall from occurring.

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Rafaela Soto Zuluaga
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47 views3 pages

BSAM OUTLINE: Lululemon Case

Lululemon, an athletic apparel company based in Canada, faced issues from March to November 2013. The key problem was defective products, as the company experienced negative reviews, executive departures, class-action lawsuits, and lack of management due to releasing yoga pants with quality issues. The best alternative to address defective products was to focus on better quality for products through manufacturing improvements, lower costs by contracting fewer reliable manufacturers, and focusing more on customer needs by expanding apparel lines. The action plan was to ensure better product quality through manufacturer inspections and verifications to prevent another recall from occurring.

Uploaded by

Rafaela Soto Zuluaga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Rafaela Soto 10/05/2016

ENT-101 Section [Letter]

BSAM OUTLINE: Lululemon case


When and where are we in Time? (Firm location, and during what time frame does the case take place?
 Canada, Vancouver
 March- November 2013

Who are the Stakeholders? (Group them into categories and put them on the same line by category):
 Customers
 Employees
 Investors, suppliers, managers.

Industry Firm Competes In & Customer Target Market:


 Comfortable clothe to exercise and do yoga. Athletic apparel
 People who want to feel comfortable. Any age people.
 People who exercise.
 People who do Yoga.

Who is the Competition? (Group them into categories and put them on the same line by category):
 Athletic apparel:
 Nike, adidas, Under Armour, Reebok

Assessment (Key Symptoms and Issues/Problems):


 Negative reviews.
 Executives leaving.
 Defective products.
 Class-action lawsuits.
 Lack of management.
 Bad service.

Analysis (The ONE Primary Problem):


 Defective product.

Explain Best Alternatives and How They Will Help “Solve” the Singular Primary Problem Above:
Alternative #1: Create a new market brand.
Alternative #2: New executives and leaders.
Alternative #3 (BEST/FINAL): Better quality for the products, low costs and focusing more in customers’ needs.

Implementation of Final Recommendation (Action Plan: Describe ways to put it in motion; its cost, timeline,
specific details about the plan – Think through EVERYTHING):
 Better quality for the products (manufacturers)
 Lower costs (for products) by having long-term contracts with fewer and loyal manufacturers
 Focusing more in customers needs by creating apparel for main sports (soccer, basketball) and plus size
apparel.
 Inspections and verifications to ensure that another recall doesn’t occur.

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Rafaela Soto
ENT – 101-[Section Letter]
Lululemon Case SWOT Analysis

Strengths (internal)
1. Employees training
2. Free Yoga classes
3. New apparel styles
4. Different and downtown locations
5. Health and fitness image.

Weaknesses (internal)
1. Quality product.
2. High price of products.
3. Short term contracts
4. Focused only in yoga apparel
5. Brand recognition- marketing
6. Bad attitude with customers- founder Chip Wilson

Opportunities (external)
1. Increasing marketing (international expansion)
2. Partnership with retail stores
3. Recognition
4. Increase sport apparel
5. More investors

Threats (external)
1. Competition
2. Small market (not focused in US markets)
3. Bad economy
4. Not enough investors
5. Exports

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