Shares of Lululemon Athletica—founded in 1998 and based out of Vancouver—dropped 4% on 9th September 2011. This was despite a 40% increase in its sales and 76% increase in its profits in the second quarter. It is expected that high labour and material costs will put pressure on Lululemon’s profit margin in the third quarter; however, Lululemon has no plans to pass on the increased costs to its consumers. Lululemon adopts the “scarcity model” for its stores to increase consumer demand—this has led its sales per square foot to far exceed those of its competitors like Roots, Gap, and Target.
1. Do you think maintaining their price will help Lululemon? How?
2. Which strategies can Lululemon adopt to differentiate itself from its close rivals like Roots, Gap and Target?
According to the World Economic Forum, this year Canada slipped to 12th position in Global competitiveness. As the Canadian economy slowed down, it lost its position among the top 10 global competitors to emerging economies from Asia. While emerging economies showed robust growth, the developed economies were mired with slow recovery and high unemployment. While in absolute terms, we see a marginal increase in Canada’s competitiveness, however, there is a higher relative increase in competiveness among competitor nations. Canada needs to improve its score on foreign direct investments, trade tariffs, and wasteful spending, while at the same time effectively use its resources (people and products) to adapt to globalization faster than its competitors.
1. How do you think Canada can improve its foreign direct investment?
2. Does globalization improve employment for unemployed Canadians? How?
3. How do emerging economies maintain a high growth rate despite the world recession?
Monitoring and engaging customer via low-cost social media can be an effective marketing and advertising strategy of many Canadian companies. Unlike companies from the U.S., which were forced to use low-cost social media to market their products due to huge budget cuts, Canadian companies, though monitors these social sites but does not yet engage consumers. Social media web sites are very popular and offer a unique opportunity for companies to build a loyal customer base. To effectively engage people on these sites, the IT, Marketing, HR and other areas of the company should collectively decide their online strategies.
Do you think it is just the marketing budget constraints in Canadian Organizations that make them less engaged?
While small businesses in Canada are on a rise, how do you think they can make their marketing effective and also strike a balance?
In your opinion, which companies use social media well in listening to their customers and for promoting their products?
The article talks about the Comprehensive Economic Partnership Agreement (CEPA)—a free trade agreement under negotiation—which is expected to boost Canada’s economy by $6
billion. For the year 2010—when most developed countries were struggling with economic turmoil—the economies of Canada and India grew by 3.2% and 9% respectively. Both countries can see immense benefit through CEPA. Through this agreement, Canadian companies will gain access to a large and a growing Indian market for their products and manpower resource. On the other hand, Indian companies benefit through relaxed trade between the two countries. Canada and India expect to complete their negotiations for this agreement by 2013, after which it will have to be approved by the parliament.
Do you think this agreement decrease or increase Canada’s unemployment rate?
What do you think are the sectors that Canada can benefit from, when the agreement comes in to effect?
Do you think the agreement will be more beneficial for Canada or India?
Description: As the New Democratic Party prepares to choose a successor to the late Jack Layton, senior party members disagree over whether to maintain the party’s historical affiliation with organized labour.
One year after announcing a partnership, Encana and PetroChina now say the estimated $5.4-billion deal is off. The failure stems from an inability to agree on the operational aspects of the joint venture. Both entities staked a lot on the success of the deal when it was announced back in February. Now Encana’s investors are showing a loss of confidence and PetroChina is suffering from loss of face.
For more than a decade, we have been hearing about companies going global by investing in China, now the shoe is on the other foot. Look at reasons for going global in the text and identify why China is looking to Canada.
Aside from the fact that the article says the deal was a joint venture, what are the characteristics that make it a joint venture? What do the two companies offer each other that make such an arrangement attractive?
With all that China hoped to gain from this joint venture, why would it walk away?