Question

Identify which generic business strategies Lululemon Athletica is employing. Is the firm leveraging the appropriate value and cost drivers for the business strategy you identified? Explain why or why not.

I believe that the generic business strategy this firm employs is the differentiation strategy. Correct me if I am wrong!

Answer 1

Lululemon Athletica, a Canadian yoga wear organization has accomplished something incomprehensible. In a standout amongst the most soaked businesses (retail clothing) they had the capacity to cut out a critical piece of the pie.

Lululemon Athletica, Inc., is another case of an organization that has discovered accomplishment in showcasing a way of life, as opposed to an item.

The organization's business startegy is based around advancing its "Lululemon Athletica" and "Ivivva Athletica"- marked items as key products to a functioning and charming way of life. Clearly, this has been an effective methodology for Lululemon as the organization can value its items at a higher cost than normal. Individuals are notwithstanding donning the organization's items as style clothing and not only for exercise purposes.

Lululemon sells its items through a system of stores it possesses and works, just as straightforwardly to clients through online deals. The organization works around four hundred twenty-six stores in the United States, Australia, New Zealand, Canada, the United Kingdom, and Singapore. Lululemon trusts that its stores help the organization associated with clients and request criticism on items, while likewise strengthening its image.

Notwithstanding internet business and advanced deals, the organization pitches its items to discount clients, for example, gyms, wellness focuses, and yoga studios as an approach to upgrade its image picture. Different deals roads incorporate stockroom deals and deals through showrooms and brief areas.

It's true that the business strategy generic business strategy this firm employs is the differentiation strategy.

Differentiation strategies as the name recommends is the system that expects to recognize an item or administration, from other comparable items, offered by the rivals in the market. It involves the advancement of an item or administration, that is one of a kind for the clients, as far as item configuration, highlights, brand picture, quality, or client administration.

Lulemon did the same thing. Rather than entering the rat race with other competitors like Nike or Adidas, Lululemon concocted another classification consolidating the usefulness of exercise garments and premium look and feel of streetwear. The athleisure classification has been conceived and they were the first to take on the crown jewels.

The firm is clearly leveraging the appropriate value and cost drivers for the business strategy as the customers are happy to pay the premium prices for its products.