Case Patagonia

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Evaluate Patagonia’s business model. How importance to Patagonia’s business model is its environmental position ?

The business model of Patagonia is not hard to understand. For Patagonia, some words are really important: “respect environment”, “quality of the product”, “innovation”. First, to evaluate the business model of Patagonia, it’s essential to give the product line of Patagonia. The product line is composed of 4 main products: Sportswear, technical outerwear, technical knits and hard goods. Now, an important thing of the business model of Patagonia is the environment. Patagonia wants to create a product but also respect the environment. This is really important and they want to produce a high quality product. The company was committed to reducing the environmental impact of its products at every step of the production process. For instance, Patagonia decided to use organic cotton for the production of their products. This decision was good but the price of this organic cotton was expensive, and the difference in cost for a heavy flannel shirt was 4.98. The quality of the products is also important. The company spends more than $100,000 annually on field-testing. To ensure the quality of products but also of the services and the respect of the environment, Patagonia launched the lifecycle initiative. This initiative was to repair, reuse and recycle. It was simple, if the customers had problems with a product, Patagonia decided to repair or change the product. If the product was totally dead, the company recycle the product. In addition, Patagonia offered an Ironvlad Guarantee to repair, refund and replace any product that did nit meet the customer’s satisfaction. Patagonia created products “designed for human”. Chouinard wanted to create a product in relation of his feeling of this different trip and experience. This is the good solution to create the best products for all the activity in relation with the special specification. The stores were...
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