Lululemon Athletica

Components and scoring: Intangible assets 85/100. Lululemon’s premium brand, fabric know‑how, and in‑store community drive willingness to pay and high full‑price sell‑through. Sales per square foot of 1,574 USD in FY2024 underscores store‑level advantage.

Risk: the company discloses that many fabrics and manufacturing technologies are not patented and can be imitated, which can pressure differentiation over time. Switching costs 25/100. Apparel customers can switch brands easily; fit preference and membership/community events add mild friction but not durable lock‑in.

Network effects 10/100. Community events and ambassadors support engagement but do not create a true network effect. Cost advantage 45/100. Scale helps with sourcing and distribution, yet the firm does not own manufacturing and relies on third‑party vendors across Asia; competitors can access similar supply chains.

Efficient scale 35/100. Premium mall and high‑street locations are limited, but competition from Nike, Alo, Vuori, Athleta and others is intense. Weighted view: Intangibles carry the most weight, with other moats modest. This yields an overall moat quality of 70/100, with durability contingent on continued product innovation and brand stewardship.