Summary of Lululemon Case Study
There are many negative and positive factors around lululemon. Basically, organization is facing geographical growth at large scale with the high communication, relationship and cultural issues. When lululemon become $1 billion business, without maintaining the culture, business is going to expand which is found by Chip Wilson and culture is very important part of organization. Lululemon face threats from competitors and suppliers that effect the growth, revenue and profit. But lululemon maintain its high quality products and some have advantage with regard to production, supply chain distribution and scale.
Lululemon also face different ups and downs in the profit. Some also consider that this is because of rapid expansion with inconsistency in culture reinforcement. Its current environment of business is decentralized marketing structure. That structure is crucial for the success of local store managers and also nature of its culture. Now lululemon face different organization changes and different challenges. After becoming public, proper satisfaction is given to shareholders regarding its growth strategy. And because of rapid change in growth, it cannot meet the demand.
Over all economic recession leading down the profit of lululemon. And due to all problems, a lack of trust and communication develop which shows adverse effect on lululemon. Lululemon mission is to develop components for people to live together, more fun lives and live longer. This includes all basic values; like quality, integrity, balance, greatness, fun and product.
Its current strategy is based on working to develop a blue ocean through creating a healthier and happier with in communities, getting the trust of customers and employees and educating the world at a high quality product and give more active life opportunities. It needs consistent growth, detail knowledge of community and people and their culture, products and expectations. Complete strategy must be clear, easy to understand and work for motivation and inspire employees and lead organization to successful level.