Lululemon Athletica Inc. has enjoyed success in selling athletic wear including tops, pants, shorts, sweaters, jackets and undergarments, as well as hair accessories, bags, yoga mats and water bottles, In this CLA, you will evaluate the pros and cons of Lululemon’s strategy, do a SWOT analysis, identify the strategic issues that Lululemon’s management needs to address, and propose action recommendations.
To prepare you for this CLA, read the Lululemon Athletica Inc. case on pages 279-297 in Chapter 5.
Your assignment: Lululemon Athletica Inc. (Lululemon) has employed you as a consultant to assess the company’s overall situation, identify the strategic issues that management needs to address, and recommend a set of actions to improve the company’s future prospects. Please prepare a 4-6 page report to Lulullemon’s management that includes (1) a complete SWOT analysis (as described in Chapter 4), (2) a complete list of the strategic issues/problems that management needs to address, and (8) a set of action recommendations to resolve the issues problems that you identify. Your report should contain detailed and convincing reasons in support of each one of your recommendations. It is imperative that the support offered for each of your recommendation be based on analysis-based conclusions.
After you have completed the assignment above, answer the following three questions as part of your report:
1. What does a SWOT analysis reveal about the attractiveness of Lululemon’s situation and future prospects?
2. What strategic issues and problems does Lululemon’s management need to address for the company to be more financially and competitively successful in the years ahead?
3. What actions do you recommend that Lululemon’s management take to deal with each of these issues/problems? Your recommended actions must be supported with convincing, analysis-based arguments.
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