- Internal:
- Strengths:
- It is a well-known brand and has established itself as a top-level brand for athletic wear.
- High-quality products with innovative designs and materials. They invest a lot in research to create and develop unique products and fabrics that offer durability and help with the performance of the consumers’ sports.
- Has loyal customers. By building a strong relationship with its consumers, the brand has gained a very loyal customer community.
- Customer-centered business model. Their focus is on how to be better and improve the brand for the consumer.
- Social Media presence. The brand is present in most social media platforms and has an incredible following that makes its products go easily viral.
- Weaknesses:
- Can be expensive. Contrary to other brands, the pricing for Lululemon can be out of budget for many people, especially for younger consumers. This can also limit their market reach.
- Limited product diversity. Lululemon is known for its yoga products, but it lacks diversity in other sports and its men’s section is not as strong as other brands.
- Limited international reach. Even though the brand has a presence in a lot of countries worldwide, the brand might not have the same popularity worldwide as it has in North America.
- The majority of its revenue comes from North America. This poses a threat to its desire to grow globally.
- Issues with their logistics and inventory. Since Lululemon relies on vendors to produce its products, any delays can affect their supply and have an effect on their demand and revenue.
- Strengths:
- External
- Opportunities
- Online shopping is becoming bigger. This poses an opportunity the brand can use to its advantage to create a higher demand globally.
- People want to look good while they work out and go out. People’s interest in athletic clothing has grown a lot in recent years not just for sports and the gym, but also for everyday use.
- Young professional athletes have an interest in partnering with athletic wear. Lululemon can partner with more athletes to expand with different generations.
- There is a growing consumer interest in sustainable and ethically produced products. Lululemon can take advantage of this and use sustainable materials and become more transparent about their clothes production.
- People are reshaping the definition of athletic wear and the target is expanding in gender, age, and ethnicity.
- Threats
- Emerging trends. Thanks to social media, clothing trends change drastically in a short period of time, and this is a threat to brands that struggle to keep up.
- High competition. The athletic apparel industry is very competitive with really popular brands that are top of mind for the public, like Adidas, Nike, Puma, and more. Additionally, many new brands have entered the athletic industry and can grow significantly.
- Economic conditions can affect the brand’s revenue, especially with economic downturns, recessions, and people being laid off. This can lead to a reduced demand.
- Counterfeit products are getting more popular, and this poses a threat to the brand because it can affect their reputation and their sales.
- Different regulations and local laws. Since Lululemon is expanding globally, they can face different government regulations and laws and encounter a step back in some countries.
- Opportunities
Disclaimer: All content included in this page are for academic purposes and has no affiliation with Lululemon and Juju Watkins.