Lululemon Athletica - Five Forces Analysis

Lululemon Athletica - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Lululemon Athletica) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Lululemon Athletica) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Diverse distribution channel (Lululemon Athletica) The more diverse distribution channels become the less bargaining power a single distributor will...
High competition among suppliers (Lululemon Athletica) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Volume is critical to suppliers (Lululemon Athletica) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute has lower performance (Lululemon Athletica) A lower performance product means a customer is less likely to switch from Lululemon Athletica to...
Substitute is lower quality (Lululemon Athletica) A lower quality product means a customer is less likely to switch from Lululemon Athletica to...

Bargaining Power of Customers

Large number of customers (Lululemon Athletica) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Lululemon Athletica) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Lululemon Athletica) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Lululemon Athletica) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Advanced technologies are required (Lululemon Athletica) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (Lululemon Athletica) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High learning curve (Lululemon Athletica) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Lululemon Athletica) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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