Lululemon's Broad Differentiation Strategy
Lululemon is pursuing a broad differentiation strategy. It acknowledges that no two activities are alike: therefore, clothing must be tailored to satisfy the demands of a given activity. For example, Lululemon uses reflective details in its running apparel to make runners more visible in dim lighting, their yoga pants, however, are designed to feel like a second skin, giving customer more stretch as they go into different poses. It is difficult for Lululemon to gain an advantage over competitors because its products can easily be replicated by much larger more established brands like Nike and Under Armour. These companies tend to have more buying power, greater brand loyalty and can achieve economies of scale using their existing suppliers,