1. Lululemon is based in Canada and it offers premium quality athletic apparel in different kinds of prices. Want your bar or restaurant to live up to its true potential? What generic business-level strategy is Lululemon pursuing? Differentiation. ... Pricing Strategy. You could do a lot worse than to take a page out of the marketing book of Lululemon Athletica, which has managed to grow its brand into an impressive $10 billion empire. 2. Lululemon Athletica Inc Value Chain Analysis can be used in the competitive strategic decision-making process. Does this strategy give it an advantage over its rivals in the athletic clothing business? Mr. Neumeier explains, "Differentiation, the art of standing out from the competition, is not front-page news. Innovative products increase brand loyalty from the existing customers and; Novel products give new customers a reason to buy the Lululemon brand. The company is having its own chain of stores. Five-year growth plan aims to “double men’s, double digital, and quadruple international” revenues NEW YORK--(BUSINESS WIRE)--Apr. Who do you think are Lululemon's typical customers? 3. It’s clear Lululemon practices what designer Marty Neumeier preaches in his book, Zag: The #1 Strategy of High-Performance Brands. to Lululemon’s strategy, which has propelled it to become a $1 billion retailer in less than 15 years. 1.1.4 Formulate effective firm-specific strategies. Marketing Strategies from Lululemon: A Billion Dollar Empire. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals’ cost structure. Introduction Lululemon's Problem Internal Problems Underlying Problem External Problems Recall on Lululemon's yoga pants in 2013 Inflated prices compared to competitors Narrow Target Market "Elevating the world from mediocrity to greatness." At the same time, Lululemon also pays more attention to its original business region and growing the stores in North America to increase its market share. Untapped potential to a larger market Strategy of Lululemon For broadening its market scale, Lululemon decides to open up the new market out of North America by setting new stores in Australia, Europe, and Asian. Lululemon has been experiencing financial profits and gains in recent times with implementation of its focused differentiation strategy. The company can find different ways to develop differentiation leadership, such as- by focusing on the reliability, durability, benefits and distinctive features of products, by developing strong brand recognition and by increasing expenditure on marketing efforts like celebrity endorsements and sponsorships etc. Strategic objectives for lululemon inc. do not include a) exploring new concepts such as stores that are tailored to each community. How would you describe Lululemon's market segmentation strategy? Lululemon attempts to differentiate themselves from competitors through the use and implementation of multiple different methods and strategies. If so, how? b) continuing to expand the brand globally through international expansion. Lululemon’s competitive strategy is broad differentiation due to the company expanding its target market and product line. The prices of Lululemon are mostly premium in nature. Although Lululemon was initially established to satisfy the apparel needs of adult women who practice yoga, the company has widened its definition to …show more content… C-79). 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