Lululemon Competition Case Study

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To sum up, there are not any substantial difference between products of Lululemon and those of other competitors. However, Lululemon’s prices are more expensive than others. Therefore, the competitive pressure from rival sellers is extremely high.

- Potential New Entrants

There are not many new companies entrance into athletic apparel industry due to time and funds. Because of developing of the Internet, retailers have to promote marketing and trade to attract more customers all over the world. It is really expensive and wastes a lot of time to do this. However, all companies

- Substitute products

There are not many good substitutes for sports apparel, so the threat of substitutes is low.

- Suppliers

- Lululemon, as well as other high-tech athletic apparel brands do not own or operate any manufacturing facilities to produce fabrics or make garments. Fabrics were sourced from a group of approximately 65 fabric manufactures - Luon. They also do have no long-term contracts with any suppliers, instead to transact business on an order-by-order basis and rely on the close working relationships.

- There are many suppliers competing for retailer’s business. Materials used such as rubber and cotton are readily available. This gives Lululemon a lot of choice in who they choose to buy from.

Following above information, we can conclude that the competitive pressures stemming from supplier bargaining power is at low level.

- Customers

Because of no significant difference between Lululemon’s products and other brands, customers can easily switch to another brands if they are at all dissatisfied with Lululemon’s products.

Therefore, the thread from customers is really high.

In conclusion,