In the competitive business environment, business must employ strategies that will ensure its survival and relevance in the market. The business must make sure its products reach all its consumers both rich and poor in the society. Additionally, it must assess the market to evaluate how its previous strategies have position the business in the market and check whether to employ a new strategy or not. Thus, if the previous strategies have not brought any significant improvement of the business in the market, then it would be wise to change tactics of doing business. One of the strategies a business can employ is partnership. The partnership can be informed base on the financial benefit where each partner benefit financially or non-financial where the partners wants to accomplish a goal that is in line with their mission of the business in the society. Thus, Lululemon Athletica Inc has taken the latter strategy with Dalai Lama Center for Peace + Education as its latest strategy in the market under the new management.
Analysis and review of the article
Lululemon Athletica is a yoga wear retailer based in Vancouver. In the past 18 months and more, the business has expressing some difficulties in its operations and public relations. Hence, the stepping down of its founder Chip Wilson and selling half of his shares to a private firm was not a surprise. This move was triggered by the boardroom brawl which could not be settled unless the founder leaves the boardroom. Furthermore, the business revenues margins have declined coupled with a product recall which was costly for the business. The business is also facing serious competition in the market. Therefore, the business is employing new strategies that will help it achieve or reach its goals in the market and also improve its image in the society. This initiative has seen the business partner with Dalai Lama Center for Peace + Education. The business will donate $750,000 to the organization in a span of three years (Strauss, 2014). The money would be used on the organization research work on how body, mind and are connected. The findings of the research would be shared globally.
However, this partnership strategy was not received well with the consumers and the general public. Many criticized and term the move as baseless. This is because they could not establish the connection between a business which is specialized in luxury wear which are sold at high price to an organization which advocates for the modest life and for the less fortunate in the society. Moreover, some consumers saw the move as ‘politics’ marketing strategy which is aimed at improving the company’s image in the society. However, this offended some consumers who resulted to stop buying from chain stores of the company. On the other hand, others questioned the Dalai Lama foundation on its involvement with the business chain and in business in general (Strauss, 2014).
The move is seen as bizarre and confusing. This comes in the wake of another scandal in one of its stores in Buffalo, New York. The store had some words on the floor spelled ‘No Goal’ and ‘wide right’ (Strauss, 2014). This did not settle well with super bowl fans. They saw as if the store was mocking the super bowl legends. Addition the founder, Wilson, ruined the reputation of the company by his comments on the oversize women which were not received well by the public. The company had to apologize for these incidences and promise to remove the words.
As such, many see the latest strategy employed by the company as its last strategy to survive in the market and improve its image. However, the company defended its move. This is by claiming; the move is aimed at alleviating the company’s mission of developing compassionate leaders in the next generation and help in creating and empowering healthy society (Strauss, 2014).
Evaluation of the strategy
This is the right strategy for the business since its aim at improving its tainted image. From the past to the present date the organization has been associated with luxury wear that are pricey (Strauss, 2014). Thus, the poor and the less fortunate cannot afford to buy the Lululemon wear since it is out of their purchasing power. Thus, the strategy, show the public that the company is not entirely interested with rich people only but it also mind the welfare of the less fortunate in the society. Additionally, it sent a strong message to the public that the company is ready and willing to share its profits with the public. Similarly, this is a form of corporate social responsibility of the company to the community.
The company is specialized in the yoga wear and the Dalai Lama foundation advocates for modest life (Strauss, 2014). Moreover, Yoga is a physical, spiral and mental practice which is aimed at the transforming and empowering the mind, body and heart of an individual. Where else the partnership is aims at supporting research on body, mind and heart connection. Thus, the partnership is in line with the objectives and the goals of the two organizations. Therefore, the partnership through the research will enable the two partners achieve their goals and mission in the society. The research will add knowledge to this area of the body, mind, heart and yoga in general. Thus, the two organizations will be in a better position to serve their clients well with the new knowledge from the research.
Strauss M. (2014). Lulu-Lama? Partnership between yoga wear maker, Dalai Lama sparks outcry - The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-on-business/lulu-lama-partnership-between-yoga-wear-maker-dalai-lama-sparks-outcry/article21278339/