ADMS 1000 Lecture Notes - Lecture 5: Customer Service, Imitation, Lululemon Athletica
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Case: lululemon: for the love of yoga: analyze the yoga clothing industry using michael porter"s five-forces model. Is the threat of new entrants high or low: new company created, existing company diversifying. Independent of scale: bargaining power of suppliers. High threat of new entrants (but probably no new entrants entering) Assume: a lot material suppliers to choose yes: bargaining power of the buyer. The number of incumbents relative to the number of buyers. No, they"re both differentiated and undifferentiated products. It depends on the buyers: yoga guru may be more interested in buying special yoga clothings, but still not an essential product you have to have. Not a lot sellers: large sports clothing sellers: threat of substitutes. Eg. sweat pants, jogging pants: rivalry amongst existing firms. Current competitors: nike, other sport chains, foot. Customer service is not rare in the sports clothing industry.