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Module 5 Mini Case 4

Module 5 Mini Case 4

Q Please read Lululemon Athletica, Inc., in 2016: Can the Company Get Back on Track? Answer the questions below to complete Mini-Case #4. Assignment Questions 1. How strong are the competitive forces confronting Lululemon in the market for performance-based yoga and fitness apparel? Do a five-forces analysis to support your answer. 2. What does your strategic group map of the performance sports apparel industry look like? Is Lululemon well positioned? Why or why not? 3. What do you see as the key success factors in the market for performance-based yoga and fitness apparel? 4. What does a SWOT analysis reveal about the overall attractiveness of Lululemon’s situation? 5. What are the primary components of Lululemon’s value chain? 6. What are the key elements of Lululemon’s strategy? [If you have previously covered the Under Armour case, which features of Lululemon’s strategy stand out as being different from the strategy at Under Armour?] 7. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Lululemon is employing? . What do the data in case Exhibit 1 reveal about Lululemon’s financial and operating performance? You should use the financial ratios in Table 4.1 of Chapter 4 in performing calculations to determine which aspects of Lululemon’s financial performance might be characterized as impressive, improving, or not. In addition to the ratios in Table 4.1, you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = [ending value ÷ beginning value] 1/n – 1 x 100 (where n = the number of year-to-year or period-to-period changes) 9. What 3-4 top priority issues do CEO Laurent Potdevin and Lululemon management need to address? 10. What recommendations would you make to Lululemon CEO Laurent Potdevin? At a minimum, your recommendations should cover what to do about each of the top priority issues identified in question 9.

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Lululemon is the company that has been doing its business in the industry of sportswear and that has created a good amount of image in the market in the minds of the customer. With its high-quality product and increasing market around the world, the company seems to grow really fast. Though competition from various other competitors the company has remained intact to its quality of product and has been doing great.