“Quality is at the heart of everything we do, from the technical features we (sometimes literally) weave into our products, to the people we work with and relationships we build” (Lululemon website). Lululemon has long been known for 
the quality yoga products that it sells. Of course quality comes at a price. The average pair of yoga pants at Lululemon costs just over $100. However, customers are willing to pay the extra price to buy these yoga pants from Lululemon even though there are many other companies that sell similar articles of clothing at a lower price. This is because Lululemon has a corporate reputation for the quality of its unique “luon” fabrics. Lululemon has used the differentiation strategy from Porter’s Generic Strategies: offering a product that customers perceive to be better and different from those of other companies.
“Lululemon lawsuit over too-sheer pants gets lead plaintiff”
Lulu’s Dark Days
Now all of a sudden the news headlines read: “Lululemon lawsuit over too-sheer pants gets lead plaintiff”, and their market value takes a dip. This example supports Porter’s theory that a combination of generic strategies doesn’t work. Lululemon tried to cut its cost and sell pants that were not up to quality with the standards and pricing of the company. Immediately, they saw the effects of this poor decision. Fortunately for Lululemon, many of its customers are staying loyal: believing that Lululemon will return to their former standard of quality.
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