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Lululemon Athletica, Inc. in 2017: Is the Company on the Path to Becoming a High Performer Once Again? (Case Study) Discussion 1 Lululemon Athletica has witnessed a remarkable turnaround performance since 2016 as shown in appendix one. Macdonald Calvin, Lululemon Athletica’s CEO who took over from Laurent Potdevin has shown the potential of growing the company’s profitability faster than his predecessor. Compared to financial reports posted at the end of the fiscal year on January 31st, 2016, the net profits have since gone up by 243%. The number of company-operated stores in 2016 was 368 operated in nine countries. However, in February 2020, the number of company-operated stores had increased to 491 and they were operated in 17 countries. This means that the company has been expanding its business since 2016. The annual sales at Lululemon’s retail stores rose to $5.18 million in the fiscal year 2020 from $4.57 million in the fiscal year 2015. The steady and improved performance is attributed to the opening of new stores (strategic expansion), good leadership, and adoption of supply and value chain strategies. Among the top priority issues that Lululemon’s CEO and the company ought to address to achieve the “power of three” strategic plan include product innovation. With the inherent competition, the company needs to focus on its product lines to produce new and unique products that would remain competitive in the market. Product innovation will ensure excellent technical performance, the introduction of new feel-good products, and hence acquire a competitive advantage. The other issue of priority is attaining an Omni guest experience. This will create a conducive environment for the stakeholders to interact freely without channel barriers. All the marketing channels of the company will be utilized in growing and deepening the relationships between the stakeholders. Employment and utilization of disruptive technology is the pillar strategy that Lululemon’s CEO and his team have adopted to maintain improved performance. Product innovation has bled to product development creating a competitive advantage to Lululemon. These strategies combined with excellent leadership have seen Lululemon open new retail stores and increase online sales whereas other competitors are closing shops. Question 1 Based on readings from week 4 what strategies do you think athletic competitors will take to regain some market share since Lulu is running away with the market share? Question 2 It is clear that the ability to continually offer new product innovation is a competitive strategic advantage of Lululemon. The company focuses on women apparel with very limited offerings for men. Do you think that men offerings could be a promising new market segment focus for the company? Why or why not? Discussion 2 Exhibit 1 shows that the company continues to grow. Which is understandable considering how popular active clothing has become lately. The e commerce sales are catching up to the stores sales which is a good sign considering the way people shop these days. Every year the revenue is increasing, so I believe this is a sign of the public realizing the quality of products they are producing therefore brand awareness grows. The issues facing lululemon and the biggest threats that need to be addressed by Laurent Potdevin are increasing brand awareness and improving public opinion. lululemon is still a very small market of athletic clothing, therefore still unknown to a lot of shoppers. When lululemon gets bad media coverage about not offering certain sizes for larger people it will hurt sales. I would recommend that lululemon try and address the men’s product line of business considering men are half the market and yet they are significantly behind women’s sales. Sweatpants and loungewear are very popular among men currently, so I believe there is potential for a large return if the brand catches on within men’s fashion. Question 1 Respond to the above discussion, what are your thoughts about the discussion? Discussion 3 Lululemon’s financial and operating performance shows consistent increases, and possibly too much growth too fast. While Potdevin was CEO he should not have been dating a designer, rather promoting a business environment and not a casual dating atmosphere. The company also needs to watch what they says for image and ratings by not commenting on thighs rubbing together causing the material to fail. As a consumer of Lululemon I think the price is too high and actually prefer Zelle so Lululemon may want to reconsider their fabric, quality of materials, and price. Reviewing the number of retail stores and possibly closing some may be a better strategy. More overall production but that may have an effect on 2nd hand sales as customers will be able to get the limited quantity/run products. Not sure if they need to review their online sales or not, they are doing pretty good. I think CEO Laurent Potdevin is sexist and needs to publicly apologize for the sexual misconduct allegations. “Lululemon can also advocate policy, not just promotional events, to expand access to physical and holistic fitness for the poor. Do this on a global scale, and in the communities that need it most—as opposed to just the affluent ones where stores are located” (Petrzela, 2018). Question1 Respond to the above discussion, what are your thoughts about the discussion?