Lulu Lemon Case

3384 Words14 Pages
Bus 707, 2012, Practice Case 1, September 12/2012 Lululemon and Vitasea; Reputational Capital Test* Instructions: We will open up our glass discussion on Feb 16, before lunch, with this case Overview Firms, even those attempting to engage in responsive and responsible social action are often tested. On November 14, 2007, the article on the front page of the New York Times business section read, “Seaweed Clothing has none, Tests Show." The story strongly asserted that one of Lululemon's product lines, Vitasea, which purported to contain a seaweed fibers designed to release marine amino acids, minerals and vitamins into the skin upon contact with moisture. Indeed, contain no such ingredient whatsoever. Both Mr. Chip Wilson, Chairman and Founder of athletic wear retailer Lululemon and Robert Mears, Lululemon’s, CEO, were about to embark in the first damage-control mission since the company's Initial Public Offering in July of 2007. This was by far the most widespread negative press lemon had received since going public, and the aftermath of the article would question Lululemon’s product integrity, marketing and strategy, suppliers and ethics. LuluLemon’s next move would be crucial to both its survival and reputation. Background to Lulemon Lululemon Athletic Inc. (Hereafter, Llm), a yoga-inspired athletic apparel and accessories manufacturer and retailer, was founded in 1998 in Vancouver, Canada. In 2007, the company owned or franchised 81 stores internationally. Llm’s mission was in its own words “to create components for people to live longer, healthier, and more fun lives”, based on core values of quality, product, integrity, balance, entrepreneurship, greatness, and fun. 1 Llm produced high-quality, innovative products meant to inspire physical activity in yoga practitioners and athletes. The company created a manifesto to capture the essence of the

More about Lulu Lemon Case

Open Document