Mission: Creating components for people to live longer, Healthier, fun lives
Vision: Elevating the world from mediocrity to greatness.
Key Personnel- Chip Wilson
PESTLE
POLITICAL
SOCIO-CULTURAL
The market for activewear has been bolstered
by the movement in society towards active and
healthy lifestyles. The number of people within
North America engaged in yoga continues to
rise (Moran, 2013). Additionally, consumers
are increasingly concerned about the ethical
production of the goods they purchase.
Value Chain
Primary Activities
Inbound Logistics
ECONOMIC
-labor disputesand economic instability in
developing countries which can affect the
purchase and distribution of raw materials
TECHNOLOGICAL
-The emergence of online shopping has enabled
clothing retailers to reach a much wider market.
-The increasing prevalence of social media has
presented new ways for companies to advertise
and spread brand awareness.
-New advanced high tech materials are a
possible source of competitive advantage for
apparel companies
 Production- only value chain activity that lululemon did not perform internally
Outsourced fabric mostly from order to order basis with 60 fabric manufacturers
All manufacturers were required to adhere the vendor code of ethics
Operations
Lululemon

48- Canada
229- USA and 33 showrooms
26- in Australia, and 1 showroom
5- stores in New Zealand
6- stores in UK and 3 showrooms
2 stores in Singapore, 2 in Hong Kong,1 store and 1 showroom Germany, 1 store in Puerto Rico,
1 store in United Arab Emirates, 2 showroom each in France and China and 1 showroom each in
Sweden, switzerland, the Netherlands, Japan and Malaysia.

Ivviva
31- Ivviva stores in USA, 26 showrooms
12- ivviva stores in Canada, 2 showrooms

Outbound Logistics
The company owned a distribution center in Columbos, Ohio, Vancouver, British Columbia,
Summer, Washington and Melbourne, Australia
- Merchandise was shipped to retail stores through third party delivery services.
- Inventory management
- E-commerce (Website)
Marketing and Sales
- Community-based approach to building brand awareness and customer loyalty
- Direct-to-consumer sales strategy through online selling
- Opened showrooms in many location in order to introduce lululemon as a brand and
culture to a community
Service
- Yoga sessions
- lululemons store sales associates, whom the company referred to as educators, were
coached to personally engage and connect with each guest who entered the store
- Lululemon manifesto
- Chalkboard

Support Services

Firm infrastructure
 Well trained employees
Selling the clothes at full price and offer clothes for a limited time
Short lead time for designs
Careful choosing of partner yoga centers etc.
HR Management
- Employee training. Employees or educators are highly trained and encouraged
by the company to develop personal connections with customers
- Employees had access to the learning library

Technology Development
- Product designs. the design team used various market intelligence sources to
identify and track market trends
- The design team worked closely with its apparel manufacturers to incorporate
innovative fabrics
- Battery of test on fabrics for performance using leading testing facility.

Procurement
- Supplier relationships. lululemon took great care to ensure that its manufacturing
suppliers shared lululemons commitment to quality and
ethical business conduct

Activity Map
Current Strategy
- Focused Differentiation
concentrate on a consumer segment concerned with health and fitness

Business Model

Strengths
- Culture
- Brand equity
- Customer relationships
- R&D
- Innovative product and design
- Segment focus
- Grassroots marketing

Weaknesses
- Brand recalls/ quality is getting bad
- High price point
- Limited sizes