QPractice question
In the Lululemon example, Lululemon primarily demonstrates which concept?
  1. A.Porter's Five Forces
  2. B.Cost Leadership Strategy
  3. C.Porter's Generic Strategies
  4. D.Market Development Strategy ✓
Why this answer:

Lululemon is the textbook illustration of Market Development Strategy. The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.

How to think about questions like this

Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.

For Market Development Strategy specifically, look for the signal: Existing product reduces development risk; new market provides growth runway. That signal is what distinguishes the right answer from plausible-sounding alternatives.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Market Development Strategy for a worked example you can adapt to your assignment.

Underlying concept

Concept · Strategic Frameworks Market Development Strategy

More practice in Strategic Frameworks

Practice · Strategic Frameworks SWOT Analysis — Definition Practice Practice · Strategic Frameworks SWOT Analysis — Application Practice Practice · Strategic Frameworks PESTLE Analysis — Definition Practice Practice · Strategic Frameworks PESTLE Analysis — Application Practice Practice · Strategic Frameworks Porter's Five Forces — Definition Practice Practice · Strategic Frameworks Porter's Five Forces — Application Practice Practice · Strategic Frameworks Porter's Generic Strategies — Definition Practice Practice · Strategic Frameworks Porter's Generic Strategies — Application Practice