Lululemon Athlete Case Lululemon is a high end sport clothing brand which commercialize technology clothes which offer a comfort and resistance above other brands giving the quality materials and research invested in making each garment. Their focus on a sophisticated woman client segment which is passionate for yoga and value a healthy lifestyle. The case study tell us the story behind this business from its very beginning along its growing process and the strategies used to achieve those numbers. The generic competitive strategy noticed in the business model was the broad differentiation strategy since they are looking for differentiate themselves against the competency with characteristics that will call the attention of broad spectrum of buyers. The differentiation used on the company is in different areas. On first place, we have their clothes with an up to date technology that brings commodity and endurance to each training the costumers want to hit, along with this feature comes the style brought on their designs which is a complement that gives not just comfort but also status and to be called someone who is body health conscious. On second hand, we have the marketing they do for the clients which the majority enjoys yoga, the stores do yoga sessions for the client with instructors working for each store so the word is spreading very fast and you bring in costumers to buy with a discount on every visit they do. In order for a blue ocean strategy taking place on this case, the business will have to be pursuing a focus on high product differentiation and low cost simultaneously, making all the competition irrelevant. On this case, the differentiation is already being used but the low cost point is missing. One of the options would be reducing the cost of producing to a low cost strategy, however, ,this case will be complicated unless finding a way to get provider with very low prices in order to be
successful and keep making the garments with the type of technology that offer their differentiation, otherwise, just changing for cheaper materials wouldn't make sense. As a second choice but less convenient, they would apply a blue ocean strategy if they restructure their client goal, instead of aiming for a sophisticated client which value all the extra features offered by the technology , may be point to some more average client which appreciate the lowers product cost with some differentiation on the style or basic innovation which the rest doesn't offer. Lululemon makes high end sport clothes which are different to many other brands, however, this is something seen in other companies like Under Armor.first move advantage seen in this case is in their marketing. The way they attract people and they keep them attached to the brand as a club makes them feel like they belong to a club and their way to bring the people into the stores to do the yoga gives the perfect timing for the company to shadow their new collection with their most loyal clients. Therefore, this is a selling channel that is not offered for the rest of the competency. Since the differentiation of Lululemon is the specific high end sport clothing, the logic would be to match them w2with similars. In this case, we find Under Armor as a similar in the industry. Both American brands pursuing to satisfy the client with technology that makes their sport healthy life better. The key point of this alliance would be their focus, UA is focused on men while Lululemon is more focused on women and therefore they could complement each other to control a bigger client segment and become even bigger than they are. Nestor Fuentes .
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