Patagonia Case Study

Topics: Recycling, Environment, Environmentalism Pages: 6 (1782 words) Published: February 10, 2013
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 is crucial to Patagonia, the company sought to create products that were simple, functional, and multifunctional. The goal for them is to offer only viable excellent products that are as multifunctional as possible so a customer can consume less but consume better. In order to ensure excellence in quality, Patagonia spent $1,000,000 annually on field-testing. Patagonia updated models only every couple of years, to ensure that each product had a distinct function and represented a significant improvement from older models. Second, Patagonia was committed to reduce the environmental impact of its products at every step of the production process. The company made many business decisions based on environmental considerations. For example, in spring 1996, Patagonia made a major decision to manufacture all of its cotton products, which made up one-fifth of its business, from organically produced cotton, due to the greater environmental footprint of conventionally grown cotton. Finally, Innovation is a vital value for Patagonia, which makes them invested annually in research and development, which included maintaining a laboratory to develop and test raw materials. Engineers in Patagonia worked on projects like developing more durable fabrics or making zippers 100% recyclable. Moreover, Patagonia had patented numerous technology and designs, such as Synchilla and Capilene. In addition, Patagonia gives their customers more value by reduce, repair, reuse, and recycle. * Reduce: company would encourage customers to limit their consumption to only essential products and to take responsibility for that consumption by choosing well-made garments with the smallest possible footprint and caring for them in an environmentally conscious way. * Repair: customers were asked to repair their product as many times as possible to lengthen its lifetime. * Reuse: once they no longer wanted it, to facilitate its reuse by giving it away, swapping, or reselling it in order to fully support the reuse of products, Patagonia planned to establish an online swap market, hold retail swap events, and donate still useful products to environmental activists and charities. * Recycle: customers were asked to return it to Patagonia to recycle in the most efficient way. For all repair and recycle requests, Patagonia promised to provide post-paid return.

Patagonia's business model
The values of Patagonia business model are closely aligned with the values they expect in their customers – a love of the outdoors, an appreciation of the wild world. 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 competitors. The company’s philosophy is...
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