Lululemon exploration of England Internal Analysis Case Study

Lululemon exploration of England Internal Analysis - Case Study Example VRIO Analysis VRIO framework is a tool for analyzing a business’s internal strength to cater a particular market. When a firm uses VRIO framework for its internal analysis, it evaluates all the resources and capabilities of a business, ignoring the strategic position of the business. The term VRIO is an acronym for: 1. V: Question of firm’s value 2. R: Question of firm’s rarity 3. I: Question of firm’s Imitability 4. O: Question of firm’s organization (Kazmi, 2012). VRIO Analysis of Lululemon Athletica Question of Lululemon’s Value Lululemon is multinational sports apparel brands incorporated in Canada, Australia and United States of America. The strength that the company has gained by operating in these three countries has added to the experience and skills required to compete at international level with sports specialty brands. Moreover, the work force that the company possesses also provides an opportunity to Lululemon to prosper in England’s premium sports market. The financial strength of the company at the moment also adds to the value of its capability to compete with other premium brands in England. Keeping in view the trends in the English premium sports apparel market, a number of opportunities are present to be exploited by Lululemon such as technological advancements, cultural fusion, strong economic outlook and opportunities for international marketing through international events in the country (Lululemon Athletica, 2012). ... Moreover, Lululemon also provides its customers on-sight physical exercise facility, running clubs and yoga sessions to familiarize the customers with the athletic environment and why it is necessary for them to have yoga and athletic sportswear of Lululemon. Moreover, Lululemon also creates rarity in the sense, that it offers its products in its own stores, thus establishing a vertical retail strategy that allows the company to have more control over its operations than others  (Lululemon Athletica, 2012). Question of Imitability of Lululemon’s Products and Strategies Lululemon is a premium brand offered at premium prices which makes it near to impossible for the competitors to imitate. Lululemon believes on community involvement in its business and thus allows others to imitate its products or technology used to manufacture products. This business practice is in alignment with Lululemon’s â€Å"doing-the-right-thing† initiative. The aim was to support comm unity members to take active part in achieving excellence in healthy habits. But the competitors find it difficult to imitate Lululemon’s products or strategies because it is very costly and requires great set of skills to produce a Lululemon’s product (Lululemon Athletica, 2012). Question of Lululemon’s Organization The way Lululemon has structured its organizational hierarchy facilitates smooth functioning of the business. The head-quarter is stationed in Canada where the product designing and concept manipulation is carried out. Moreover, the headquarters also handles the financial controlling function of the business. Whereas the business in Australia,