b-LULU-ooming business!

In chapters 14 and 15, Barney expands upon mergers as well as the strategic benefits of international growth.  In Lululemon’s recent 10-K, the company discusses the importance of international markets to “gain access to new customers for current products” (Barney 420).  However, the company focuses on syncing its competitive advantage with its expansion strategies:

“We are focused on accelerating our international expansion. During fiscal 2014 we opened corporate-owned stores for the first time in the United Kingdom and Singapore and opened showrooms for the first time in China. We will continue to utilize a community-based approach to building brand awareness and guest loyalty in new countries but will look to do so over a shorter period of time than previously, so that we can accelerate our international growth.”

Lululemon Athletica Inc. (2014). 10-K. Retrieved from http://www.bloomberg.com/research/stocks/financials/secfilings.asp?ticker=LULU

Chapter 13 - "Anti-Stink" Alliance

“A strategic alliance exists whenever two or more independent organziations cooperate in the development, manufacture, or sale of products or service” (Barney 363).  Lululemon and Noble Biomaterials, Inc. teamed up a year and a half ago to engage in a nonequity alliance, where “cooperating firms agree to work together …but do not take equity positions in each other or form an indentent organizational unit to manage their cooperative efforts” (Barney 363).  Noble Biomaterials produces X-Static ®, an antimicrobial, odor-resistance fabric.

“lululemon has worked with Noble for nearly a decade to differentiate our products and we welcome the opportunity to solidify this partnership,” said Christine Day, CEO of lululemon. “This unique opportunity allows us to continue to innovate our technical product with X-STATIC®, which has helped lululemon set the industry standard by using the most powerful silver fabric technology to create our Silverescent fabrics, and secure our leadership position in the “anti-stink” athletic apparel market.”

http://investor.lululemon.com/releasedetail.cfm?releaseid=790499