Strategic Position and Contemporary Environment of Lululemon

Strategic Position and Contemporary Environment of Lululemon

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Introduction

Lululemon is a Canadian athleisure brand known for its premium quality and product innovation. It is a renowned athletic apparel brand and has strategically positioned itself at the forefront of the industry by consistently delivering innovative products and fostering a strong community-focused culture. With a deep understanding of its target market's aspirations for active and mindful lifestyles, Lululemon has successfully differentiated itself from competitors through its commitment to quality, functionality, and style (Xu, 2022). The subsequent paper discusses the current strategic position of Lululemon by internal analysis of the organization through different internal environment analysis models, including The Cultural Web, Value Chain Analysis, CR, and TOWS analysis. The report also explains the critical drivers for change from an external perspective. Furthermore, it evaluates the contemporary environment by considering its impact on people, purpose, and the planet. The paper provides recommendations for strategy change and implementation to achieve the updated strategy and plan for the organization.

Part One – The Current Strategic Position

Lululemon, a renowned athletic apparel company, currently holds an enviable strategic position within the retail industry. Despite fierce competition, Lululemon has established itself as a premium brand that delivers high-quality products and fosters an active and healthy lifestyle (Hailey, 2023). With its mission to elevate the world by providing exceptional technical gear for yogis and athletes alike, Lululemon strives to inspire individuals to live their best lives through physical fitness and mindfulness practices. Guided by this vision of empowering people to embrace their limitless potential, the company emphasizes innovation and functionality while ensuring that style remains at the forefront of every design (Diao, 2021). By consistently delivering cutting-edge athleisure wear that seamlessly blends fashion with performance, Lululemon has cultivated a sense of value among its loyal customer base – one that transcends mere clothing purchases to encompass personal growth and self-expression in all aspects of life. The current internal position of Lululemon is assessed through the following models:

The Cultural Web

The cultural web provides a better understanding of workplace culture in the organization (Johnson et al., 2017). Lululemon has stories that significantly shape its organizational culture. These narratives may encompass the historical account of the company's establishment, anecdotes regarding its merchandise, or accounts of staff and customers who have undergone significant transformations via their interactions with Lululemon's products. The essence of Lululemon's identity and values is represented through symbols that are the focus of the cultural web. These symbols comprise the iconic logo and particular colors linked with the company's brand image. Moreover, stories hold significant importance in shaping Lululemon's culture as they recount its history, the vision of its founders, and inspirational narratives from within the organization. Lululemon follows a hierarchical model as the power structure of the company. The CEO, along with the management team, is responsible for developing and implementing business strategies. The managers are also given authority to make decisions as the company structure supports collaboration and teamwork. The power is distributed at the different levels by leadership to ensure effective communication within th organization to encourage innovation and creativity. The company's organizational structure is strategically linked to its business model (Orgio, 2023). The company follows a decentralized structure where employees work as cross-functional teams. People share creativity and increase cooperation and teamwork. The culture of Lululemon is influenced by a range of established practices and routines within the workplace, including an emphasis on the quality and creativity of its products. Routines about inventory management, quality control, and marketing initiatives significantly influence the company's culture. Lululemon's culture emphasizes corporate practices and traditions. The company's goal-setting practice is considered a major ritual that encourages employees to improve and progress by setting personal and professional goals annually and tracking the progress. Due to its affiliation with athletic apparel, Lululemon hosts activities like yoga sessions and health seminars as part of its corporate ritual. The control systems at Lululemon are directed toward quality control, supply chain management, and inventory management to ensure quality and consistent processes. The company follows programs across the manufacturing processes to ensure standardization within all business activities. The power centers lie at all levels of the corporation. It follows a flat power structure dividing decision power within the company. It empowers employees and motivates them to make decisions that can help them grow personally and professionally and contribute to business success.

Value Chain