Lulu lemon Value Chain - Assignment Example

Cost AnalysisTaking into consideration financial statement of the company, indicating the cost of goods sold from 2007 to 2012, there is an indication that the company has been competitive, thus profitable. This is due to the following reasons: There has been significant increase in the cost of goods sold from 2007 to 2012, with simultaneous increase in net revenue as well as gross profit within this five year financial period (Pg. 61)The company has also recorded significant increase in net profit from 2007 to 2012 with the following specific figures in (Million USD): 2007, $7.

7; 2009, $39.4; 2010, $58.3; 2011, $121.8; and 2012, 185.0 (Pg. 61)Increased operational expenses from 2007 to 2012; however, this has been simultaneously accompanied with increased net profit, profit per share and gross profit, an indication that the higher operational costs have been profitable for the company (Pg. 61)Customer Value PropositionThe core mission of the company is to provide its clients with components that would ensure they live longer, more fun and healthier lives. This core value has been the driving force ensuring that the company provides fitness materials that meet the specific needs of its clients (Pg. 69). This mission has also guided its efforts towards working with designers from various disciplines, thus contributing to the increased marketability of its products and services (Pg. 68). Appropriate sales strategy, covering various parts of the world and offering wholesale as well as internet-based mode sale has significantly contributed to the massive success of the company.

This has not only ensures that its products and services are access, by a wide range of clients, but also increased its competitive advantage due to low prices associated with wholesale products and services. Strategic ImplicationsIncreased operational costs accompanied with increased net profit overtime; has enabled the company to improve the value of its products and services, thus attracting a large clientele baseThe core mission of the company, based on ensuring funnier, healthier and longer lives among the clients, could be attributed to the improved success of the company from 2007 to 2012Involving the participation of personnel from different disciplines to develop various designs for the company has ensured that the company attracts different dimensions of clientele base i.e. from young to the aged, children, women and men, thus improved net profitsExpansion of the market base through appropriate sales strategies i.e. internet marketing, extension of services to other parts such as Canada, has enabled the company not only to improve its popularity, but also improve its clientele base, thus higher profit margins