The apparel retailer Lululemon is a leader in the global fashion and apparel industry due to its unique concept, brand identity, and business model. In recent years, however, this position has been
challenged by competitors and a series of controversies. Lululemon needs to quickly address these challenges and evaluate the sustainability of their competitive advantage. Recent developments
have brought into question Lululemon’s dominant position as a provider of exclusive quality in sports and yoga apparel.
You are the senior member of the International consultancy (ACME Consulting), self-described as, “…a leading global professional services firm that delivers performance improvement, turnaround
management and business advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action”. You have been hired by Lululemon to
advise them on the following issue:

To what extent will Lululemon’s resources, capabilities, strategies, practices and knowledge be enough to return to their successful levels of market share and profitability? Specifically, in light
of the recent crisis surrounding their sheer Luon clothing products, how should they address challenges to their current strategies and practices?