Lululemon Athletica: The Wholesaling Decision

Chip Wilson, the founder of lululemon athletica, is thinking of wholesaling garments to achieve economies of scale. Deciding to wholesale is not an easy decision for Wilson because he has had difficulties collecting receivables in the past. To help him make his decision, he turns to real options-analysis. This case is the second in a series of lululemon athletica cases that focus on decision-making using real-options analysis. Other cases in the series are: 9B06M036, 9B06M038, 9B06M039, 9B06M040, 9B06M041 and 9B06M042.