Analysis of a Case Study-Lululemon Athletica Company

Analysis of a Case Study-Lululemon Athletica Company

Lululemon Athletica Inc. is an athletic apparel company founded in 1998 by Wilson. The company was one of the best in selling yoga apparel and providing yoga classes (Beninger et al., 2014). The study will focus on the details presented in the case by identifying the main issues featured in the case and diagnosing the overall communication situation. It will also identify the key stakeholders involved and how they are affected and impacted by the problems identified. 

The company has several stakeholders. They include the media, customers, employees, stockholders, competitors, and community leaders. Following the numerous issues presented by different stakeholders, it is evident that the company did not have a good relationship with its stakeholders. The company is expected to have published stories that would draw viewers and readers to access the firm's insiders. However, at Lululemon, the company founder thrived in making controversial comments on different subjects like topics concerning the Japanese, child labor, plus-sized women, and feminism. To build a good relationship with the public, the company should make positive comments and treat all its consumers and employees equally. 

Secondly, the treatment of plus-sized women wears also led to public relations crises in the company. The staff reported that the company displayed plus-sized women's clothing differently than those in shape. Wilson also made negative comments on plus-sized women's clothing terming them as “money losers” which is wrong because Lululemon was meant to provide a healthy lifestyle to everyone. The issues presented in the case indicate that the company founder had an unhealthy relationship with its stakeholders. All customers are expected to receive good products at fair prices and should be given equal and good service. 

Thirdly, the company faced communication complications. Best teams have abilities to communicate effectively, however, lack of proper communication results in several losses like decreased returns, frustrated clientele, and increased cost of production (Moldoveanu & Naravandas, 2019). At Lululemon Athletica Inc. there is evidence of communication complications. Several factors lead to complications in communications in an organization. They include the availability of missing information, assumptions of previous knowledge, and unclear explanations. For the new CEO to correct the complications in communications at Lululemon, several factors must be put in place. One is to create a safe space for communication. Employees need to feel comfortable while voicing their opinions, offering ideas, when reporting issues, and sharing criticisms. It can help solve ways in which plus-sized women's clothing is displayed to show that the company cares for every targeted consumer in their organization. The CEO also needs to feel comfortable approaching their employees with issues i.e., involving them in various ways in which the issues addressed in the case can be solved to retain the public relationship the company had before Wilson tainted it. 

In addition to this, the company needs to put into consideration the communication complexity. It is the function of the people involved in the communication process (Crane & Livesey, 2017). To achieve success, Lululemon Athletica Inc. needs to come up with a strategy that helps them in solving the communication strategy. One of the most common solutions is leadership i.e., there is a need to come up with a leader who simplifies the communication process by having it flow from people with authority and influence to the entire group. It will help in solving communication mismatches and complexity by allowing the employees to convey the right communication to the consumers. A good leader will also take into consideration the complaints made by the company’s brand ambassadors and its former employees. It can be done by creating an avenue for safety by providing undercrowded free courses and coming up with consistencies between the company and the key principles of yoga. 

Nevertheless, there is an existence of such thing as bad publicity even though PT Barnum, the showman whose story in the movie ‘The Greatest Showman’ thrived on the opposite. It was because, in the 19th century, the phrase was considered to be suitable. Today, companies cannot thrive on negative publicity because consumers' level of awareness has increased, and do not consume products that have bad publicity (Roulet, 2020). The reason behind the reduced consumption of Lululemon Athletica Inc. products is due to bad publicity. The company founders and leaders need to be aware that irrespective of what their intentions and ideas behind a project are, how the public receives the content and the resulting publicity will have a significant effect on how the public will perceive the project. The company should understand that all the controversial comments made by Wilson to the public changed the perceptions of consumers towards their product. An example is given when Wilson stated that some women’s bodies were not fit for their products and that the reason behind the ‘pilling’ of their high-performance fabric was due to the thighs of the women producing pressure. It shows that the founder had no respect for women and this is one of the things that drive away consumers. It should therefore be noted that there is bad publicity. 

Lastly, the new CEO needs to correct all the publicity issues faced by the company by understanding that the founder lacked a strong relationship with its stakeholders. The starting point is building healthy relationships with consumers, employees, and the community. One can do this by coming up with proper communication channels, solving the quality issues by understanding the gap that exists between the company’s expectations and the reaction of from the market. 

References

Beninger, S., Pek, S., Robson, K., & Mills, A. J. (2014, September 10). Lululemon Athletica's Product, Employee, and Public Relations Issues. Ivey Publishing. 

Crane, A., & Livesey, S. (2017). Are you talking to me?: Stakeholder communication and the risks and rewards of dialogue. In Unfolding stakeholder thinking 2 (pp. 39-52). Routledge. 

Moldoveanu, M., & Narayandas, D. (2019). The future of leadership development. Harvard business review, 97(2), 40-48. 

Roulet, T. J. (2020). The power of being divisive: Understanding negative social evaluations. Stanford University Press.