Patagonia Case Study

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Ana Martínez Valls 22/10/2012 PATAGONIA
1) Evaluate Patagonia’s business model. How important to Patagonia’s business model is its environmental position? Business models generally have as a primary objective to earn money, however, Patagonia’s is primarily oriented towards “doing things right”. That is why Patagonia’s founder Yves Chouinard considers the company an opportunity to “challenge the conventional wisdom and present a new style of responsible business”. It’s business model differs substantially from the traditional business’ one. PATAGONIA’S BUSINESS MODEL

* Target customer: Patagonia builds products for its “core users”, those who lead the “dirtbag” lifestyle (someone who wanders for temp jobs and long summers”, someone who is passioned about climbing, surfing..etc) * Product: High quality & useful products, for different occasions that are aimed to “last forever”: Four main product categories: Sportswear (47%), Technical outwear (30%) Technical Knits(12%), Hard Goods (6%). * Mission- Core service:  "Build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis”. Value delivered: Manufacture of high quality outdoor and adventure sport clothing -Quality: Best clothes, own quality Lab (patents and technique used by other big corpportaions) -Environmentally impact (organic materials, recyclable products, environmental campaigns) -Innovative products that can “last forever” (more intelligent consumption) -Service to he customer (repair, replace)

* Acquire and keep customers: during a recession as it is the case nowadays, in a competitive market if two firm s have the same product at a similar price and one of them has a more responsible business, customers are going to choose the responsible business’ product * Differentiation: Organic materials...
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