Final answer:
The primary components of Lululemon's value chain include primary activities such as inbound logistics, operations, outbound logistics, marketing and sales, and service, as well as support activities like infrastructure, HR management, technology development, and procurement. These elements contribute to providing high-value products and services to customers.
Step-by-step explanation:
The primary components of Lululemon's value chain are a series of actions that the company takes to provide value to its customers. These actions can be broadly categorized into primary and support activities following Michael Porter's value chain framework. The primary activities for Lululemon include:
- Inbound Logistics: Managing the receipt, storage, and dissemination of materials.
- Operations: Converting materials into the final product, such as the manufacturing of their apparel.
- Outbound Logistics: The distribution of finished products to stores and customers.
- Marketing and Sales: Strategies and processes that generate consumer interest and handle the selling of Lululemon products.
- Service: Post-sale customer support and services.
Support activities that enhance the efficiency and effectiveness of these primary activities include:
- Firm Infrastructure: Corporate structure, management, planning, and finance operations.
- Human Resource Management: Hiring, training, development, and compensation of employees.
- Technology Development: R&D, software, and tech infrastructure contributing to product and process improvements.
- Procurement: Sourcing raw materials and negotiating with suppliers.
Each of these components work together to create a seamless and effective operation that provides high-value products and services to Lululemon customers.