Student

BMG 112- MANAGEMENT THEORY & PRACTICE

ASSIGNMENT #1

FORTIER FALL 2011

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Congratulations! You have just been hired to work in the athletic apparel industry. Along with a group of 2 or 3 other students you will be working as an analyst in the corporate strategy department at Lululemon, a leader in the athletic apparel industry.

For your first task, your boss Christine Day, President and Chief Executive Officer (CEO), asks for an in-depth company profile. You need to demonstrate to her that you have gained a solid understanding of both the athletic apparel industry and of Lululemon. Hint: You will need to do research to find lots of credible data (numbers, figures, percentages, tables) to support your arguments.

In order to provide an industry and company profile, you are required to do the following:

1) Industry description:

▪ What is this industry? How large is it (look for figures on total revenue, the number of people it employs, etc.)? DO NOT TELL ME IT IS LARGE!!!

Lululemon categorizes itself as being in the technical athletic apparel industry, which is highly competitive. This category is part of a broader industry, the sports apparel industry, which encompasses apparel and footwear. This industry is comprised of large multinationals such Nike Inc., Adidas AG, which includes Adidas and Reebok brands, and Gap Inc. These companies sell a much broader range of products as well as athletic apparel. The industry also counts several smaller companies which are specialized in yoga apparels only.

The market for technical athletic apparel is highly competitive. Competition may result in pricing pressures, reduced profit margins or lost market share or a failure to grow our market share, any of which could substantially harm our business and results of operations. We compete directly against wholesalers and direct retailers of athletic apparel, including large,...