PATAGONIA CASE ANALYSIS
1) In line with the mission statement - to build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis – Patagonia’s values and principals lie at the heart of their corporate strategy. Sustainability is at the center of the business. Its success is based on organization’s high level of commitment and dedication to the environment, being involved in delivering business results with breakthrough ideas and helping to create a better future. To make this possible, the company has three main areas of concentration, emphasis on quality, environmental impact and innovation. Patagonia’s green business strategy involves integrating it into all the company’s activities and its relationship with suppliers, customers and consumers. Instead of working with random suppliers or distributors, Patagonia demands its business partners to share the same environmental sensitivity and demonstrate it with tangible actions such as using 1% of their revenue in protecting environment. As for the consumers, the company created a website and campaign through which consumers are advised to exchange and return used products in order to put them into recycling process and helped consumers to own the company values and be an advocate about it on social life. With this value chain Patagonia managed to differentiate itself from competitors and created visible and worthwhile point of differentiation and kept small number of point of parity with its competitors. (Please see second page) 2) It is practically the core of the business and the glue that holds the company together. In contrast to the companies who have limited green strategies, Patagonia made its environmental position as the essence of the business and integrated it into every operation of the company from product development to marketing. Along the way, the company stands ready to even sacrifice its topline and bottom line growth in order...
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