Question

The famous but old “SWOT analysis” has been criticized but it can still be useful for a quick look at an organization. Make (draw) a SWOT analysis chart for lululemon athletica. Discuss implications of your analysis on the recommended future strategy of that organization. Please provide insightful analysis and elaborate more.

Answer 1

SWOT Analysis of Lululemon Athletica:

• Strengths:

• The company produces new style of apparel for men and women.
• The company has its operation in over 140 countries.
• The company has good strategy for advertising and marketing of the brand
• The company with fashion designers produces new clothing styles.

• Weaknesses

• Compared to international buyers, brand recall is less.
• Global penetration is less in spite of high quality apparels.

• Opportunities:

• There is better opportunity for reach into emerging economies.
• The world apparel industry is expected to have increased manifold.

• Threats

• There would be more competition with many other brands.
• There may be challenges faced including change in fashion trends, tough competition etc.

Implications of SWOT analysis on the future strategy of the business:

• The company has strength in its design aspects. This can be a good strategy for the business in developing new and innovative designs in the future. It also has a strong brand name. this will help them in diversifying its business which ensures the customers’ acceptance because of their brand name.
• The company’s size is its weakness. This can be used as a strategy in the future, where it can consider for expanding its business to more number of locations and thereby increase its revenue. Another weakness is its lack of experience when compared to others like Nike, as it expands more it can get more experience.
• There were firms that were not focusing on the female market. This opportunity can be made used in the future as an opportunity by diversifying its product line.
• There are threats from existing as well as new competitors. This strategy can be used in the business like a challenge. Because of the threat, the company may go in for innovation on its products or introduce new products to retain the customers.