Problem
I. What kind of company is Lululemon? How would you summarize its value proposition? How does Lululemon differentiate itself in the market? Is Lululemon easy to imitate? Why or why not?
II. How and why did Lululemon begin by selling to women? Why is Lululemon now targeting men as well? What do you think about this segment expansion strategy?
III. Thinking more deeply, how can any firm induce people to pay up to $200 just for a pair of pants? Is it a branding effect, mainly? If not, what explains the high Willingness To Pay?
IV. Is this high Willingness To Pay sustainable? Is there a natural decay process? What must Lululemon do to sustain this Willingness To Pay for as long as possible?
V. As you read in the article, Lululemon tried to expand from the women's segment to the men's segment. Can you find any similar example like Lululemon (i.e. successful expansion from one segment initially to the other segment later) in Korea? Please discuss one company example.