Capstone Case

Read the Lululemon Case. Be sure to read the two supplemental articles at the end of the document i.e. Case Flash Forward #1 and #2. Answer the following questions in a single Word document.

The capstone case is a comprehensive case analysis assignment of lululemon athletica, a Canadian athletic apparel company.

1. Define the generic business-level strategy used by Lululemon. Who is the targeted customer? What customer need does the company satisfy? How does the company use its competencies to satisfy the need? (10 points)

2. What industry is Lululemon competing in? Analyze the competitive forces in the external environment using Porter’s five forces model. (10 points)

3. Discuss the advantages and disadvantages of Lululemon’s small size (e.g.revenue) relative to its larger competitors. Be sure to address issues related to governance (e.g. the role of founder and decision-making flexibility), resources (e.g. limited capital and power), and structure (e.g. informal organization and underdeveloped internal controls). (10 points)

4. What challenges will Lululemon face when expanding into Asia? Focus on factors such as pricing, brand awareness, positioning, customer acquisition, distribution, etc. Within these markets address the differences in culture/business practices and recommend a global strategy for Lululemon. (10 points)

5. What ethical dilemmas/issues has Lululemon faced over the last few years? Analyze the impact of the ethical issues by addressing the stakeholders involved, consequences of the ethical issue and laws/standards that are relevant to the issue, if any. How could Lululemon have handled these issues differently? (10 points)

Paper Format: No more than four pages, single-spaced, 12-point Times New Roman with one-inch margins all around.

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