Which is NOT one of the five competitive forces faced by Lululemon?

The correct answer highlights a factor that is not traditionally considered one of the competitive forces within Porter’s Five Forces framework. The model is designed to analyze factors that influence competitive intensity and profitability in an industry, which include the bargaining power of suppliers, the threat of substitute products, the threat of new entrants, and the bargaining power of buyers (which can be connected to customer loyalty).

While customer loyalty is critically important to a brand's success and can influence customer behavior, it is more of an outcome of competitive dynamics and marketing strategies rather than a force that shapes the competitive landscape itself in the same way as the other forces do. The Five Forces framework focuses on the effectiveness and intensity of competition rather than the reactions and preferences of the customers.

In contrast, supplier bargaining power examines how much influence suppliers have over the prices of goods and services, while the threat of substitute products assesses the potential for alternatives to draw customers away. The threat of new entrants considers the barriers to entry in the market and the challenge posed by potential new competitors. Each of these components directly pertains to the competitive environment faced by Lululemon.