Lululemon Firm Activities Relevance of Strategies in Essay
- Length: 5 pages
- Sources: 4
- Subject: Business
- Type: Essay
- Paper: #94316106
Excerpt from Essay :
Lululemon Firm Activities
Relevance of Strategies in Firm Activities.
Strategic Firm Activities at Lululemon
Strategic Firm Activities at Lululemon
In establishing and concretizing business operations in a market, it is vital to lay down the necessary strategies to determine the level of diversification of the products produced, their affordability and availability to customers. Some of these strategies worked upon are the corporate level, international, strategic alliance and cooperative strategies. The establishment of Lululemon Company has been at the limelight in addressing these strategies in compliance to its industrial trends and in addressing its comparative and capability gaps. The company has enjoyed exponential revenue rates and vantages towards its market. Considerable micro and macro environments have contributed to the progress of the company.
Corporate level strategy is responsible for defining the market unto which a business stands. It is a business-level strategy that overlooks the functionality of a company. It also engages coordination of commitments and actions that a firm, in this context, Lululemon, to put on a competitive advantage. Lululemon has exploited the trend in the sale of outfits by incorporating yoga-inspired traits and clothing lines. Similarly, the company has browbeaten its competence in female sportive outfits to add onto the market's upper hand besides its main competitor's (Kane, 2012).
The enterprising venture of a company depends on their integration to the strategies at corporate levels. The Lululemon Company has achieved this by clearly stipulating the main product it provides to customers. By venturing in the production of outfits inspired by yoga, the company has made a crucial decision in service marketing and competing with some of the top brands in its venture. The accomplishment has so far been accredited to the various resources established at its corporate level strategies. These resources are conjoined to the equity in the allocation process on cash, management, input and output resources (Droege, 2007).
Corporate level strategy has delivered a new sense of worth to its customers by engaging them in the determination of their sole role, and in placing the company at an advantaged position in the market. They are the main clients unto whom Lululemon serves to give the best products (Kane, 2012). Besides serving the customers, customer satisfaction by Lululemon has been achieved towards its esteemed customers. The company has also devised the most appropriate methodologies for addressing the needs of their female customers towards the trendy clothing fashion and in yoga exercises.
International strategies affect all tales of business operations. Lululemon has tried to coincide in making decisions in managing operations at international standards. The company has a role to play at determining and standardizing international clothes trade. Form recent progresses of the company towards structuring and developing a corporation level in the market. Similarly, there is a necessitated venture from the company in the international environment. Having stipulated international strategies aids a company in maintaining a break through towards the extremely competitive environ (Segal-Horn, 1999, pg 1). However, the strategic issue surrounding implementation of international strategies depends on its motivators, advantages and problems associated. From the recent upcoming industrial trends at Lululemon, international strategies have seen the various outcomes the company has made towards internalizing its industrial characteristics, tactical flexibilities and its corporation capabilities in the international view. Under this notion, Lululemon has carried out activities at international levels, and this has led to its adverse effects and impact towards international trade on clothes.
In effect to corporate level and international strategies, strategic alliances are also integrated in ensuring that capability gaps are overcome. These alliances are also utilized in competing accordingly with other rivals in the same venture of industry. From the previous research, the main opponents of Lululemon are Nike, Nordstrom and Gap. Engaging in alliances or joint ventures of business with these competitors will ensure a competitive advantage towards reaching the addressed customers.
There is a variety of causes as to why many corporations engage into alliances. Strategic alliances are primarily driven by the emerging and increasing global competition (Yoshino, 1996, pg ix). Lululemon has not concretized its foundation in the market, and this has been an impediment towards rendering potential threats to other leading companies in the same industrial market. Benchmarking the rival's activities is difficult especially for Lululemon since there is a fear of market assault being brought up by the competitors. Integrating strategic alliances for Lululemon has been an option towards evenly innovating a rival relationship and making use of potential resources in reaching the optimum levels of marketing. However, the strategic alliances have been attributed to major challenges whilst in the partnerships.
Looking upon international multinationals such as Nike and Adidas will require a limitless strategic association with Lululemon. The central integration of alliances to Lululemon will assure that it recasts its entrepreneurial venture, respond to the diversifying globalization and neutralize the competitive strategies in reducing the competition. Besides, Lululemon has struggled in maintaining strategic alliances with companies such as Mint. Mint health has had the opportunity to oversee that the apparels produced are in accordance to the fitness requirements of women and ladies. Such alliances have also been conjoined to stakeholders with advantages in adherence to international standards of labor and the environment. As depicted, these necessitated strategic alliances towards Lululemon are not only in the marketing segment but also in its existence to external factors such as law, environment and in the availability of resources. Other than those advances in strategic alliances, Lululemon has teamed up with other stakeholders in yoga and health middles.
Cooperative strategy is conjoined to strategic alliances. The latter is a primary, mutual strategy that oversees mutual relationships between a firm and other beneficial firms (Droege, 2007). Cooperative strategies have vantages in enabling a company to acquire fiscal profits in a market. Integration of strategic alliances with other stakeholders at Lululemon has added onto conceptual aspects of competitiveness. Performance gaps in strategizing its continuity in the market through cooperative strategies have been addressed. More effective channels of networking have directed alliance relationships towards arriving at more effective positions of corporate, strategic management and marketing.
Barriers towards competitive advantages
From the researches conducted earlier on Lululemon, there have been several impediments towards the attainment of optimum competitive advantage. This has been ascribed to several problems depicting inappropriateness in its endeavor to strategic management. A major barrier is technological advancement in producing the fabric used in the manufacture of apparel. The innovatory Silverescent® technology implementation has not been fully objectified at the company. Lack of these affects several phases in breaking into the athletic apparel trade globally. Foremost, attaining a competitive advantage becomes a challenge. Secondly, maintenance of focus in the development of rare yoga apparel faces less enthusiasm. Unique branding of the clothes produced at Lululemon is also highly discouraged (Marketwatch, 2011).
Similarly, venturing in the production of only female apparels has also been an impediment towards the firm's competitive advantage. The rivals, Adidas, Nike, Nordstrom and Gap have had major breakthroughs due to the production and marketing of both male and female clothes. This is a step not familiar to Lululemon as compared to the company's rival. This lack of experience in venturing in such an industry is a war chest towards succeeding in strategic, competitive advantages and core rigidity. Likewise, the company's premium prices and luxurious range of yoga clothes are intricate to keep up with, especially with the changing trends of fashion (Marketwatch, 2011). Retailing strategically upon international grounds has been a contributing obstruction in increasing its share of the market and profits. The luxurious bit of business, prices and target market have compromised the tactical endeavors and core rigidity of the sport cloth trade market.
Area for Strategic Change
It is necessitated that the Lululemon Company engages in strategic implementation programs for necessitated changes. These changes are key to ensuring that…