Thursday, September 26, 2019
Research paper about lululemon Example | Topics and Well Written Essays - 500 words - 3
About lululemon - Research Paper Example Lululemon has three main suppliers; Delta Galil, Eclat Textile company, and Workday Inc. All of the suppliers are established organization, a factor that suggest their stability and ability to meet LululemonÃ¢â¬â¢s demand for resources. The fact that LululemonÃ¢â¬â¢ competitors, such as Nike, also deal with the suppliers also suggests the suppliersÃ¢â¬â¢ reliability. Lululemon however only commands a small proportion of the suppliersÃ¢â¬â¢ revenues and this identifies it as a minor buyer who may lack strong bargaining power. It only commands 1.2 percent of Delta GalilÃ¢â¬â¢s revenues and less than one percent of revenues for Ecalt Textile and Workday Iinc (Forgeon, et al. 25, 26). The company operates direct links with customers, with women as the main customers. Adults, however, forms the major target market that women dominate, and types of offered commodities shows this because for every class of commodities, there are more types for women that for men (Lululemon 1). Studios and gyms are another target market and sells to customer (Forgeon, et al. 26). The companyÃ¢â¬â¢s products have trademarks that protect them from unfair competition, especially through illegal trade in counterfeit commodities. Offered yoga trainings to the community is another strength that bonds the company with the community and establishes competitive advantage through the relationship and through aspects of corporate social responsibility. Research and development that leads to innovation and established product identities are other strengths that the company has. It also trains its employees to ensure quality products for customer utility. Such an initiative is also likely to ensure low employee turnover rate, as it identifies value in the organizationÃ¢â¬â¢s employees (Bayley, Beale, Dubinsky, & Peedin 20). Lululemon however deals in a narrow range of products and this limits its revenues.