Lululemon Athletic, Inc. has relied on the vital components of the value chain to execute the majority of its operations. Critical scrutiny of the various activities in Lululemon Athletic, Inc. illustrates the adoption of dynamic approaches in performing multiple processes. For instance, in the outbound component of the value chain, the company relies on both owned and leased warehouses in various regions within North America as essential distribution centers of its products. Given the various challenges and intense competition, the case study illustrates multiple approaches, which Lululemon Athletic, Inc. has implemented to improve the quality of its products and counter the intense competition from other sports apparel companies such as Nike and Reebok.
Exhaustive scrutiny of the Lululemon Athletic, Inc. illustrates both strengths and weakness of the organization in manufacturing and outsourcing of various apparels. According to Thompson Jr (2016), Lululemon Athletic, Inc. executed all the relevant operations about inbound logistics except the production process. Therefore, Lululemon Athletic, Inc. owned no manufacturing facility that produced garments or fabrics. Consequently, Lululemon Athletic, Inc. relied on over sixty fabric manufacturers, with Luon supplying an estimated 30 percent of all the garments to Lululemon Athletic, Inc. Despite the outsourcing of garments and fabrics as far as South East Asia, Lululemon Athletic, Inc. ensured that all suppliers shared a collective commitment to ethical business and quality to enable the gain a competitive advantage in the crowded sports apparel industry.
In Lululemon Athletic, Inc., a team of designers from Vancouver spearhead the production process and ensure that the current sports apparel match the expectations of customers and can effectively compete against other established sports apparel brands such as Nike and Puma. The level of professional improvement among store personnel is one of the fundamental sources of success of the company. Educations, the majority of who are fitness experts provide an adequate recommendation to the designers who develop technical and innovative sports apparel designs.
Detailed scrutiny of Lululemon Athletic, Inc. illustrates that the company relied on both owned and leased warehouses to store manufactured commodities before distribution. According to Thompson Jr (2016, p. 111), Lululemon Athletic, Inc. leased a 156,000 square foot facility in Vancouver, British Columbia owned 307, 000 square foot distribution facility in Columbus, Ohio. Apart from the leasing and owning various warehouse, Lululemon Athletic, Inc. outsourced transportation to third-party companies, which shipped the merchandise to the various retail stores.
Lululemon Athletic, Inc. relied on a multifaceted approach to implement its marketing and sales strategies of the apparels. According to Thompson Jr (2016), Lululemon launched an expansive and all-inclusive e-commerce website in 2009. Because of the geographic limitation, Lululemon Athletic, Inc. resorted to the e-commerce as a technologically advanced approach to supplement phone sales operations. Apart from expanding the market, the website played an important role in building the company’s brand and enhancing customers’ awareness in Europe , North America , and Australia.
Through the efficient online presence, Lululemon Athletic, Inc. frequently and proactively seeks the views of the customers while providing relevant recommendations based on the needs of the customers. According to Thompson Jr (2016), the company’s website has registered various feedbacks and views from the customers, an aspect that has enabled the company to improve various perspectives of their apparels.
Lululemon Athletic, Inc. has succeeded because of the elaborate and effective strategies that it has implemented on outbound logistics, inbound logistics, operations, marketing, and sales, as well as services. Despite the common challenges that the company has faced, the value chain operations have hugely contributed to the success of the company.