Final answer:
Lululemon's brand reputation for quality is valuable, built on innovative and difficult to imitate product design. These products are rare in the specific niche Lululemon occupies, and their combination of material quality and brand image makes them difficult to substitute, suggesting a sustainable competitive advantage.
Step-by-step explanation:
To apply the VRIN framework to Lululemon and determine if the company can sustain a competitive advantage, we need to analyze whether its resources and capabilities are valuable, rare, difficult to imitate, and difficult to substitute. Lululemon's brand reputation for high-quality yoga and athletic wear is undoubtedly valuable as it attracts a loyal customer base willing to pay premium prices. This reputation is based on innovative product design and a strong community-focused brand image, which are difficult to imitate because they're rooted in unique company culture and customer experiences. Additionally, the products are rare; though there are other athletic wear brands, Lululemon has carved out a unique niche. Lastly, the combination of their high-quality materials and community-driven branding is difficult to substitute, ensuring that Lululemon has more than just a temporary edge over competitors and can maintain sustainable competitive advantage.