MGT429 Missouri State Lululemon Generic Business Level Strategy Questions

User Generated


Business Finance


Missouri State University


1. Define the generic business-level strategy used by Lululemon. Who is the targeted customer? What customer need does the company satisfy? How does the company use its competencies to satisfy the need?

2. What industry is Lululemon competing in? Analyze the competitive forces in the external environment using Porter's five forces model.

3. Discuss the advantages and disadvantages of Lululemon’s small size relative to its larger competitors. Be sure to address issues related to governance, resources, and structure.

4. What challenges will Lululemon face when expanding into Asia? Focus on factors such as pricing, brand awareness, positioning, customer acquisition, distribution, etc. Within these markets address the differences in culture/business practices and recommend a global strategy for Lululemon.

5. What ethical dilemmas/issues has Lululemon faced over the last few years? Analyze the impact of the ethical issues by addressing the stakeholders involved, consequences of the ethical issue and laws/standards that are relevant to the issue, if any. How could Lululemon have handled these issues differently?

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Explanation & Answer

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Lululemon Athletica
Name of the Student
Name of the Affiliate Institution


Lululemon Athletica
Question One

The target customers for Lululemon are those individuals who are living a physically
active life that strive to achieve balance. Thought most of its customers are female. This is a
good target because a significant number of female have ventured into sports and other
activities to keep their bodies fit. The customers must have disposable income since the
clothes are offered at a higher price. Another quality of the target customers is that they are
individuals between 15-65years. These are people who have the energy to do exercises. The
company is able to satisfy a number of customers' needs and that is why they are willing to
pay high prices for quality fashion items. One of the customers need is to increase sport
participation. A number of women can now be able to participate in different kind of sports
since they know where to get the right attire. Another need is to take athletics to another
level. The company has been able to fulfill this need by offering a variety of attires that are of
high quality. Apart from quality, the attires are also unique in the sports market. The
company is able to use its competence to satisfy the needs of its customers. Lululemon has a
unique culture that makes it different from the other competitors. There is a deeper
understanding of the target customers and this makes the company focus on them and satisfy
their needs. It also has a close relationship with its communities which results in customer
Question Two

Really helped me to better understand my coursework. Super recommended.


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