Thanks Lia, the questions you raise require immodest action from my perspective. Apart from just the well know impact of consolidation and digitization on inventory management and better ability to scale distribution, it is also important towards the brand core values. Lululemon is targeted towards active, aware, premium customers, who are always concerned with convenience as well as anything else, with its fragmented supplier base, Lululemon could suffer setback on the long term to satisfy the overall needs of the market in terms of service offering of the product and not merely its availability. Also, we have seen many brands hit by accusations of child labor, modern slavery and human trafficking, in that sense, having a less fragmented supply chain allows for more control and ability to maintain a certain level of customer promise.
Very interesting read. The current situation, although very protective of the company, could literally change the company’s fate in an instant. That said, it is still unclear why such legislation would change in the near future. The company is unlikely to survive in the situation where the regulation changes, however, there does not seem a sign for it. Such change will create a ripple effect that is probably deemed too risky by any political party, and opposition with the public opinion in topics about employment, and international competition have not been very popular. In other words, this does not seem like a fight that anyone might be willing to jump into at the current period of time.
Great read. In a world where brick and mortar is going online, and online is going brick and mortar, it is interesting to highlight the strength of the brand that has been visible over the past against those only available on screens. The touch and feel of the brand still requires physical stores, where customers create the first connection with the brand, a lesson online stores are realizing late, so although the digital scale is massive, the physical strength is still dominant. Yet, with such huge leaps in the digital world and brand strength beyond description, it is interesting to keep track of the performance of a company such as nike, which seems to have all variables of the equation figured out. Not strange how this is one of the greatest brands in the world right now.
Thanks for this interesting read. I wonder however why there had been no push to challenge consumer behavior and attempt the creation of a smaller product mix, which could allow for greater supply efficiencies as well as better ability in managing wastes through there production processes. Although I would agree that acquiring its own land could allow Starbucks to better manage its supply chain, it still has control over customers and can direct their preferences in directions that might actually be more effective.
Very thoughtful read. Although the shift to focus more on plant based meat is challenging being a new industry, it aligns with the slowing demand fro meat in the US, which for local suppliers could provide a way out of livestock. In other countries however, the demand for meat, specially chicken, is on the rise. In Egypt, a border line middle class economy, the consumption of more calories is very consistent with income growth (95% growth expected by 2050). It would be interesting to see how global demand for meat will affect producers in USA, and whether this will drive change in those numbers by altering consumer behaviors in order to realize a sizable effect on the global climate.
“Studies Show Link Between Meat and Climate Change.” Climate Central, 20 Apr. 2016, http://www.climatecentral.org/news/studies-link-red-meat-and-climate-change-20264.
Interesting article, the interesting underlying idea though is whether there is feasible and capable labor in the US. Tim Cook commented on the idea saying “The U.S., over time, began to stop having as many vocational kind of skills. I mean, you can take every tool and die maker in the United States and probably put them in a room that we’re currently sitting in. In China, you would have to have multiple football fields.” Although building this labor is always an option, however, the government should be ready to defend the company against fierce competition, that will undoubtedly take such a chance (if it takes place) to overtake Apple dominance in the US market, an aspect that would not play in anyone’s favor, and could lead to a loss for both the US and Apple.