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Patagonia Case Summary

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Patagonia Case Summary
Patagonia Report
Product Lifecycle Initiation insights and recommendations

Chien-Yu Hsiao
Omar Alsoswilm
Sheng-Wei Chu
Wangleyan Pan
Patagonia is one of the best companies in the world that produces outdoor clothing and gear. They make organic cotton clothing, sportswear, travel clothing, and technical Regulator. What we found amazing about Patagonia is that they are producing high quality products while in the same time helping the environment. Moreover they define their products as long lasting and strong. In this report, we will analyze the case and provide our recommendations about Patagonia.

The core value of Patagonia
Patagonia always emphasis on three values: quality, environmental impact, and innovation. First, quality
…show more content…
Patagonia has found innovative ways to demonstrate those values at the core of the business not just as a side effect. There is a direct link between buying a making, selling or buying a Patagonia product and some beneficial effect on the natural world, and this is strong motivator for employees and customers alike. Patagonia made their brand more eco-friendly not only because they want to be differentiates from other competitors, but they want to encourage their customers and suppliers to work on the environment protected actions. Because they want to be implement ideal business model and also need to be different from other …show more content…
They also use the organic cotton instead of normal cotton as their raw materials; moreover, they dedicated themselves in developing new material from recycled plastics bottle that is not only a way to use the wastes but also a way to show their eager to being an environmental protector. They use only selected supplier who have the similar philosophy of the environment and also willing to make action of protecting the earth. Furthermore, Patagonia even has great influence on their employers and has their employers participant in environmental protected actions. The employers also enjoy good warfare in the company which made they work for Patagonia longer than work in other company.
Patagonia is a company with very good reputation and highly well known even they do not have budget for advertisement for TV, Internet or newspapers. However, they spend amount of money in charity or donation in organizations which working on environment improvement, which is the company philosophy and also brings a positive image to the company. Though the company donated some money, their sales and margin grow constantly from 2002 to 2010 (exhibit 1), their Operating Margin is $26,963,000 million in 2010 and the net profit is about 6 %, which shows higher than the net profit of Columbia Co. in 2010 –

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