Framework for Competitor Analysis. Yoga wear industry - Assignment Example

Framework for Competitor AnalysisCurrent strategiesIn the yoga wear industry, the Lululemon’s corporate giant competitors such as Nike, The Adidas Group, and the Under Armour and specialty department store retailers like The Gap, Athleta, Nordstrom, Lucy, and bebe stores have well established themselves to raise potential competition challenges to the company. When the wholesalers like Nike and the Adidas Group have the advantages of strong brand recognition and consistent revenue growth, specialty retail stores focus on product specification strategy to meet the interests of consumers.

Rival companies make huge investments in brand building and promotion to expand their market over the coming years (C-71, para.5).Current strategies are strongObjectivesCompanies operating in the yoga wear industry strive to achieve consistent improvement in financial performance without overpricing their products.Specialty department retail stores practice a low price strategy to obtain a competitive edge in the yoga wear sector (C-72, para.3). Since rivalry in this sector is vigorous, firms often struggle to meet their objectives.

Strong pressure from the management to improve the market performance. Objectives are weakCapabilitiesWell-known global brand name is the strongest capability of brands such as Nike, The Adidas Group, and the Under Armour. People are willing to pay for the brand name.Innovation is the major strength of specialty retail stores. Rivals are trying to develop innovative product lines to become industry leadersCapabilities are strongAssumptionsCompetitors’ top managements believe that investing heavily in promotion is a great strategy to spread brand awareness.

Hence, they sponsored major athletic events and professional athletes (C-71, para.5).Rivals also think that direct selling to consumers and effective use of social media can improve their strategic situation (C-71, para.4). Such beliefs and practices would force competitors to spend more on Ads and other promotion techniques. Assumptions are strongThe Yoga wear industry as a whole seems strong.