Lululemon

Luncheon is poised and well positioned to move to another level in the prodigality sports appargonl tradeplace. While our ch each(prenominal)enges over the last 18 months give way been Impacting, we stick out maintained profit skill and have not lost strong market share. In response, our loss leadership team conducted environmental and administrational s drive outs over the last 30 days. From these scans, we have identified most future strategical opportunities and challenges that when addressed, will set us up to become the 1 sports luxury apparel shop in the world.We will continue our innovation by Introducing new harvest-feasts lines at that place is a spacious opportunity for us to reach out Into a childrens line. Another opportunity for Luncheon Is to Investigate new pack strategies In diversification of sales revenues. In tandem with these opportunities, we urgently ask to address several threats inclusive of diversifying our supply chain and improving prevale nt traffic to resonate our aggregate values and brand.Our environmental scan include a macro trends report, examination of our industry/ competition, and a comprehensive fall over of our stakeholders needs and expectations. Significant macro trends worth noting Include sustained popularity of yoga seaworthiness for the near term, continued growth in online sales, and sustained usage of amicable media (with women representing a disproportionately large amount of characterrs engaging our brand). Due to the use of petroleum and cotton products, material and labor costs for Luncheon can sometimes be unpredictable based on fluctuations in these good markets.Our assiduity analysis Indicates that the sports apparel brand Is a $106 billion dollar sign Industry with the two biggest players only owning 14 recent of the market share, See pecuniary Analysis Slide. We are the top ranked premium sports apparel organization and the 5th highest ranking organization overall. Our suppliers ar e more than suppliers they are partners, See Industry/ Competitive Analysis Slide. Our collaborative relationship with our suppliers helps us take some of the most forward- pay heeding products in the market.Supplier leaves with materials and manufacturing have posed an ongoing issue due to various recalls creating a drop In company persuade price, which In turn, has raised concerns with dockworkers, See stakeholder Analysis slide. These problems have caused Luncheon to face tearing scrutiny in the market and media, which eventually resulted in negative familiar Relations related issues. The inability for the Public Relations department to expose such incidents has impacted the overall product brand within the market place.With that said, the monetary health of the company Is good. Net revenue for the fiscal course of study 2013 Increased 16% to $1. 6 billion from $1. 4 billion In fiscal 2012. The company ended with $698,649,000 cash on hand, enough to line its operating a ctivities. Our operational support reveals Luncheon customer satisfaction rest high despite recent and ongoing manufacturing issues, See Stakeholder Analysis Slide. We possess a loyal customer base and have recently moved all of our stores from the franchise model to being ran internally to maximize on our nuance.From this environmental scan, we were able to conduct a comprehensive and In-depth Internal analysis to fix how well prepared we included an operational health report, a financial report, and a review of our culture. The current organization is structured so that there is an opportunity for open immunization throughout the business, while wellness programs create high employee satisfaction. Since our inception, our culture has been about creating components for people to live long, healthy, and fun lives.This culture permeates through our employees, our in-store experience, and of course our customer base. We believe in support of the communities in which we are a part b y creating various festivals, retreats and continually counselling on sustainability. Overall, our internal report shows we are poised for growth and have the tools to take advantage of our opportunities while meeting our challenges head on. Luncheon is the leader in luxury sports apparel. In order for us to stay the promethium luxury sports apparel provider, we have to make sure we keep our core competencies aligned.Our core competencies are defined as follows 1 . Developing innovative luxury designs, 2. Grass roots marketing, 3. Creating a motivated workforce, 4. Creating a split second to none positive customer experience. Our four recommendations outlined in the number one of the memo align perfectly with these core competencies, and our reports show we have the ability to achieve success in each area. Developing new product lines, especially focusing on a line for the youth, will fix we stay diversified.In developing these lines we can start to diversify our suppliers by conclusion other markets in which to partner. Currently our depth in suppliers is large, however, the diversity is nominal. Our suppliers are primarily concentrated in one region, Asia-Pacific, leaving us subject to natural disasters, border wars, and other issues that can affect production, See Stakeholder Analysis Slide. Creating superfluous channels of sales will work to enhance our second to none customer experience.Working with luxury hotels and other recognizable high end partners cognise for great customer service will also help with our skunk roots marketing along with increasing our positive public relations presence. Also, by controlling our public relations and placing an increased emphasis on it, we will be able to better position our image and brand for lasting resonance in the marketplace. We are excited for Luncheon and look forward to partnering with you on implementing these four strategic objectives that will propel our great organization to another level.