Lululemon Case Study

Case 12
Lululemon: Turn
ing Lemons into
Lemonade
Lisa M0945019 Shogo M0845031
Wendy M0945002 William M0943012
01 INTRODUCTION OUTLINE
02 BACKGROUND
03 STAKEHOLDERS,
INTERESTS, AND IMPACTS
04 CASE ANALYSIS
QUESTIONS FOR
05
DISCUSSIONS
1.
INTRODUCTION
OF LULULEMON
o An self-described yoga inspired athletic apparel company
o Products : fitness pants, shorts, tops, and jackets for activities such as yoga, running, and other
fitness programs
o Segments : corporate-owned and operated retail stores, a direct to consumer e-commerce
website, and wholesale avenues
o The organization has seen continuous increases in revenue, with its 2014 annual revenue nearing
$1.8 billion
2.
LULULEMON'S BAC
KGROUND
2. BACKGROUND
Lululemon stores
First store in today focused on
November 2000 community
Founded by Opened 302 High price and no

Denis “Chip” stores in 2015 in discount
Wilson US, Canada, The concept of
Australia, etc scarcity
in 1998
Seven core value
01
Quality 02
03
Product
Integrity 04
Balance
05
MISSION:
Entrepreneurship 06
“Create components for people to live Fun
longer, healthier, fun lives” 07
Greatness
3. Stakeholder
s, interests,
and impacts
Stakeholders Interest before the event Impact after the event
- Achieve organizational goals - Resignation of two CEOs

Board of - Making profits - Protests from customers
Directors - Increase persoanal's wealth - Stock price down
- Good quality products and service - Additional costs ($2 billion)
Primary - Increase employees' personal goals
Stakeholders
- Receive salaries and promotion - Act of violence
Employees - Improve living quality - Being pressured
- Get a good quality products and best services - Lost trust

Customers - Improve health - Sued the company
- Report news - Ethical issues conducted by Lululemon will

Media become well-known to community
Secondary - Loss trust to Lululemon
(New York
Stakeholders Times) - Lululemon will get bad reputation because of
the news
Competitors - Beat Lululemon's products and popularities in - Competitors products will be more demanded
(Nike, etc) the market than Lululemon's products
4.
CASE ANALYSIS
ETHICAL RISKS A
ND CHALLENGES
Ethical Risks and Challenges
Activities: did not report
to Top Management
Orthodox opinions
Controversial
statement
• Company name
• Child labor laws
• Opinion on rise of
divorce and breast
cancers
Misleading Advertising
The authenticity of Lululemon’s VitaSea line of products is doubted
Lululemon’s New York Lululemon’s Canada’s

claim Time’s claim response Competition
• Released Bureau
• Its VitaSea
independent
products were Released an
tests Ordered Lululemon
infused with article that it had
• Confirmed that to remove all such
seaweed tested could not
the products labeling
• Has medicinal find seaweed
contained as
properties fiber
advertised
Corporate Culture
"Cultish" Corporate
Culture
• Promotion of “rugged
Individualism” Idea of "Greatness"
• The elevation of Hire workers with Type A
mediocrity to greatness personalities
• The relentless pursuit
of happiness
Contradictory of the Idea

of "Greatness"
"Cultish" Corporate Culture
"Individual Teachings" Donation to Dalai Lama Centre
for Peace and Education
• Promotes this kind of teachings
• Does not belong to yoga clothing • Donated $750,000
industry • Some sited as the company's generosity
• Contradicts the Vedic philosophy • Some criticized that donation should
not be given to non-profit organization
Vedic philosophy : • The company claimed that the donation
• The development of physical, moral fits well with its vision of mind-body-
and intellectual powers of man and to hear
achieve salvation through it
• Laid on attention, concentration and
yoga
Too-sheer yoga pants
• Black Luon yoga pants that become sheer when the wearer would bend over
• New York Post released a statement from a customer who claimed that she had to demonstrate
the sheerness of her yoga pants by bending over in the store so the associate could check
Women’s bodies Women buy

are to blame for the pants that are
fabric’s sheerness too small for
and their tendency them
“Cups of Chai, Apple Pie, Rubbing Thighs.”
for pilling
Controversial Issues
Some people
simply misuse
the product
Chip Wilson’s statement)

Critics viewed this as sexist comments
Customer Privacy
Lululemon’s way to Taking too far

act in business
• Avoid collecting customer • Eavesdrop on their customers
information through big data
techniques • Set up their clothes-folding
• tables next to the fitting rooms
• Desires to have a close and open
relationship with customers
POSITIVE ETHI
CAL PRACTICES
Contributions to Communities
Free weekly yoga classes
Get a 15 percent discount if

attend the free yoga classes
Simply talking with the

customer
Suggest organizations
and charities
Relationships with employees
Make employees into grand
ambassadors
Encourage healthy living and
incentivize employees
Balance between family and
work
Have a good chance of becoming
a leader
Offer unique perks
Incentive pays for high-
performing employees
5.
QUESTIONS FOR DIS
CUSSIONS
QUESTION 1
Too Sheer Yoga Pants
Chip Wilson made several arguments that
create controversial issues
He stepped down from Board of Chairman
Donation to Dalai Lama Centre for Peace

and Education
ANSWER The company claimed that donation is a
How has Lululemon handled good idea, even to non-profit organization
various ethical issues that it
has faced over the last few Customer Privacy
years? Probably this issue is not solved and
Lululemon seems to keep going to
eavesdropping customers' complaints
QUESTION 2 For Employees
Positive Side :
- Can be seen in slide "Relationship with
Employees"
Negative Side :
- Employees are pressured to live up to
company standards because of "competitive"
culture --> Because of each employees has
How has the ethical personal goals to be achieved
ANSWER
culture of Lululemon For Customers
impacted its relationship Positive Side :
with customers and - Customers can directly express complaints
employees? because employees have direct interaction
with customers
Negative Side :
- Lack of customers' privacy
QUESTION 3
1. Think further before making decisions
2. Provide some proofs of the
3. Must respect customers' privacy
4. The company can design an app so that

To avoid negative publicity ANSWER customers can express their complaints
and ethical challenges, what through the APP
steps should Lululemon
take to improve its 5. Test the products before launching in the
stakeholder relationships? market
CREDITS: This presentation template was created by
Slidesgo, including icons by Flaticon, and infographics &
images by Freepik and illustrations by Stories
THANKS!

Lululemon Case Study

Uploaded by

Copyright:

Available Formats

Lululemon Case Study

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lululemon Case Study

Uploaded by

Copyright:

Available Formats

Case 12

Founded by Opened 302 High price and no

- Achieve organizational goals - Resignation of two CEOs

- Get a good quality products and best services - Lost trust

- Report news - Ethical issues conducted by Lululemon will

Lululemon’s New York Lululemon’s Canada’s

Contradictory of the Idea

Women’s bodies Women buy

Chip Wilson’s statement)

Lululemon’s way to Taking too far

Get a 15 percent discount if

Simply talking with the

Donation to Dalai Lama Centre for Peace

2. Provide some proofs of the

3. Must respect customers' privacy

4. The company can design an app so that

You might also like