Dennis Wilson founded Lululemon Athletica in 1998 and it has become an entrepreneurial giant.
Lululemon is an entrepreneurial business because of 4 main reasons:
- Amount of wealth creation: Lululemon, as of 2010-08-01, currently makes over 80.30 million dollars in profit. In order to be a successful entrepreneurial venture, the company must create “substantial wealth, typically in excess of several million dollars of profit” and Lululemon clearly satisfies this criteria.
- Speed of wealth creation: An entrepreneurial venture also creates millions in dollars of profit quickly, in which Lululemon has done.
- Risk: In the clothing industry, there are only 4 major companies that control 2% of the market share in women’s fashions (Source: Microeconomics by Robert Gateman). Therefore, there is a lot of competition and if prices and/or quality are inadequate the seller will earn no profits.
- Innovation: Although his product had already been developed, Wilson used new production methods in order to differentiate his product from others. He created “technical athletic fabrics” as opposed to the cotton fabrics used in previous yoga wear. Lululemon clothes can also be designed by the individual consumer then made by hand in Lululemon Labs, like the one at 511 West Broadway.
The inside of the store on Broadway.