The Efficacy And Sustainability Of Patagonias Strategy

This report seeks to assess the efficacy and sustainability of Patagonia’s strategy, its success in being an industry role model and the prospects of its Product Lifecycle Initiative in generating profitability and improving the environment. Business Model and Overall Strategy Patagonia’s value proposition is based on embedding environmental sustainability in every business decision it makes. Its core strategy is differentiation by focusing on durability and quality of products whilst minimising its carbon footprint and use of synthetic ingredients (what). The business model revolves around developing innovative technologies and influencing competitors and suppliers alike to adopt environmentally-friendly processes (how). Commitment to these causes while maintaining quality has allowed it to develop a loyal customer base amongst high income groups and athletes (who) and significantly increase customer’s willingness to pay. Products are sold not only via wholesale and catalogue/internet channels but also through 52 dedicated retail stores which provide a sense of community to customers. Value Curve Analysis (Appendix 1) reveals that Patagonia scores highly on qualitative aspects of customer experience and products which offsets higher prices. It has multiple unique product offerings consisting of patented technologies and designs such as Synchilla, Capilene and insulated wetsuits which could be considered as its Valuable, Rare and Inimitable (VRI) resources. However, it’sShow MoreRelatedBackground Inditex, One of the Worlds Largest Fashion Distributors, Has Eight Major Sales Formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home Y Kiddys Class- with 3.147 Stores in 70100262 Words   |  402 Pagesevery moment. Beatrice Kogg Lund, January 2009 Executive summary Background and purpose of the thesis The issues that stakeholders today are bringing to the corporate agenda are diverse indeed, ranging from issues pertaining to environmental sustainability, human rights, workers’ health and safety, community welfare and the spread of HIV/AIDS. From a corporate perspective this brings challenges that reach far beyond the traditional shareholder focus on financial returns and, as a direct consequence