Final answer:
Lululemon can potentially continue to succeed with the same premium-pricing strategy, but it depends on various factors such as product quality and market demand.
Step-by-step explanation:
Lululemon can potentially continue to succeed by employing the same premium-pricing strategy, but it depends on various factors. This strategy has worked for Lululemon in the past, as they have positioned themselves as a high-end brand in the athletic apparel industry, offering products at a premium price. They have created a perception of exclusivity and quality, which has attracted a loyal customer base.
However, the success of this strategy relies on several factors. Lululemon needs to maintain the quality of their products and continually innovate to stay competitive in the market. They also need to understand their target market and ensure that there is a demand for their premium products at the current price point.
If Lululemon experiences a decline in demand or faces increased competition, they may need to reassess their pricing strategy. They could consider adjusting their pricing to appeal to a wider range of customers or exploring alternative strategies to maintain their market share.