Public Relations and Lululemon Case Study

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Lululemon Five I's Strategic Analysis

Issue Identification

Several stakeholders include employees and consumers have accused Lululemon of causing damage sales because the company does not know the strategy to handle the public relations. The situation further affected the company sales because of the recent public statement of Chip Wilson who went on Bloomberg TV blaming the "women bodies" for a decline in sales. (Bhasin, 2013 p 1). Undoubtedly, Wilson went to the TV to offer the best explanation that causes a down in the sales, however, his explanation spark a wave of outrage making him resign his position in December. This issue directly affects the customers because they are affected by the company negative public relations. (CBS, 2013).

Lululemon is company that makes technical athletic cloth for working, yoga, and workout. However, the company has recorded a decline in sales in the last years, and of the major factors affect the sales is that the public relations problems that are undoubtedly affecting the sales. The company does not understand the strategy to handle the PR consequently turning into the negative PR, which are affecting the company business. The issues that are confronting the Lululemon the method to handle the public relations to improve the sales.

2. Interested Strategic Stakeholders

Several stakeholders are likely to gain or lose from the issues facing Lululemon.

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First, the company employees are likely to lose from the present issues. If the company sales continue to decline, Lululemon's management will be forced to lay off some workers, which may affect their livelihood. Moreover, the shareholders are affected because of the issues. Since March 2013, Lululemon has recalled the black yoga pants because the product is see-through, and the company sales were flat in the fourth quarter making the shares to slump by further 11%. If the issues are not corrected on time, and the shares do not improve, many shareholders will lose their money. Moreover, customers are the other stakeholders who will be affected by the issues affecting. Lululemon. Bhasin, (2013) reveals that women customers have been exposed to a significant amount of negative news since the company recalled their products, and overall women shoppers' perceptions of the company brand make the product to fall four times in 2013. Thus, the customers have affected in the sense that some women are shy from buying Lululemon brand following Wilson comment on their bodies.

However, the competitors will gain from the present issue because some customers will be forced to switch to the competitors thereby making the competitors enjoy an increase in revenue. Moreover, the government may lose from the present issue because Lululemon will pay lesser tax.....

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