Lululemon Athletica Essay

Introduction
Lululemon Athletica, Inc. is a leading designer as well as retailer of top-end yoga and sports apparel. The company was established by Chip Wilson in 1998 in Vancouver and has been operating mostly in New Zealand, Australia, and North America. Wilson created Lululemon Athletica, Inc. to address the unique preferences as well as needs of women, but later the management decided to increase its market target. As a result, the company started designing and retailing yoga and athletic apparel for the female youths and men. The company reaches out its potential customers through instructors and yoga studios. It is important to note that Lululemon Athletica, Inc. has continued to grow significantly since its establishment thanks to effective leadership. Nonetheless, in spite of its substantial growth, Lululemon Athletica is experiencing some pertinent issues, which the management have to address so as to prevent it from incurring losses. For this reason, the present paper analyzes these issues and recommends the courses of action that the company’s management ought to implement.
Issues Facing the Company
The major issues that the company’s management needs to address include the rising competition and the problem

In essence, the competitive rivalry in the athletic apparel industry is very high because of several competitors who are capable. As reported in the case, the leading competitors always position themselves in an attempt to appeal to a greater market share. Besides, it is reported that the competitive rivalry among the rival brands is vigorous. As already mentioned, the leading competitors for Lululemon Athletic are the Adidas group, Nike, Inc., and Under Armour. The consumer’s switching costs are low, meaning that it is easier for the consumers to switch to the products offered by Lululemon Athletica’s