Lululemon is in the athletic apparel industry Until recently it has been

Lululemon is in the athletic apparel industry until

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Lululemon is in the athletic apparel industry. Until recently, it has been unchallenged in serving a distinct premium yoga niche for women. Because of increased popularity of the sport and sustained above-average earnings in the segment, new competitors are now seeking to capture a share of the growing market. And some of these new competitors have substantial capacity to make an impact. Analysis using the five forces model of competition reveals that the intensity of rivalry in this segment of the sports apparel industry is beginning to increase. The strength of competitive forces in lululemon’s external environment is summarized in the graphic below and is further explained in the section which follows. Intensity of Rivalry Increasing Supplier Power Moderate Threat of Substitutes Low Buyer Power Moderate to High Threat of Potential Entrants Very High
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