Patagonia case study - 1808 Words

Patagonia – A company true to its value KEY PROBLEM Patagonia known as the â€Å"dirtbag† business initially when it was established in 1972 by Yvon Chouinard is now a multimillion dollar enterprise. A retailer of high-end outdoor clothing is known for its green business model. Environmentalism is at the core of Patagonia and that can be seen in their mission statement where it is committed to achieve three main objectives: Build best products for its customers, cause no unnecessary harm to the environment and use business to give solutions and inspire others to minimize environmental crisis. Patagonia had a philosophy of originating its goal mainly on doing things right for the environment and away from profit. The company does not focus on†¦show more content†¦Another advantage of this option is that target customers are people with an average income of $160,000 with an median age of 38 yrs who will not have any objection paying a little higher for their favourite product. Patagonia might face an external threat from other competitors in this situation as their goods will be much cheaper than that of Patagonia. This might encourage a few customers to switch to other brands like Nike or the North face. Such a situation can threaten the growth of Patagonia. The second alternative for Patagonia is to not implement the idea of â€Å"Product Life Cycle Initiative† and â€Å"buy less† any further. This alternative is much safer for Patagonia because the above mentioned initiative is completely consumer driven. The success of this idea completely depends on whether it would have any practical impact on the consumer behavior. As Patagonia’s target consumers are rich enthusiasts, it is likely that they would not prefer wearing repaired clothes or used clothes. Therefore putting so many efforts in an initiative that is based on hypothesis and is risky doesn’t make sense. The advantage of this alternative is that Patagonia will not have to bear any additional cost burden. The s ales will not drop and there will be no threats from the competitors. As we know Patagonia has a green business model dropping the idea of buyShow MoreRelatedPatagonia Case Study2390 Words   |  10 Pages| 2012 | | PATAGONIA CASE STUDY | Table of Contents PART 1 Discuss the management control system in the Patagonia Company. Explain and discuss the nature, context, evolution, elements, processes, strengths, weaknesses/problems of the management control system at Patagonia (including a critical evaluation of the Workbook Process). Page 3 PART 2 Would you recommend to Patagonia’s management that they continueRead MoreCase Study : Patagonia, Inc.1633 Words   |  7 PagesPatagonia, Inc. is an American clothing company based in Ventura, California. It was founded by Yvon Chouinard, originally as a small company called Chouinard Equipment that made climbing tools and gear. It now focuses on manufacturing durable top of the line outdoor based apparel for those who enjoy being outdoors as well as general apparel. The change from manufacturing climbing equipment to producing outdoor apparel was due to the environmental concerns of Mr. Chouinard. The equipment that wasRead MorePatagonia Case Study Essay1741 Words   |  7 PagesPatagonia Case Study Key Strategic Issues (Why Important / Summary of Internal / External Analyses) 1) Balancing Commitment to Business with Commitment to Environment A key issue facing management was balancing the company’s desire for environmentalism with its existence as a for-profit business. 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McGregor believed managers could accomplish more through others by viewing them as self-energized , committed, responsible, and creative beings(Kreitner and Kinicki,2010, pg.8). According to the passage, â€Å"Patagonia’s philosophy is the handiwork of Chouinard....He helped pioneer modern rock-climbingRead MorePatagonia: Leading a Green Revolution Essay637 Words   |  3 PagesCase Study Four Patagonia: Leading a Green Revolution 1) Patagonia has a history of putting sustainability ahead of profits. Based on what you learned about Patagonia’s ideals, how do you think the company determines what possible ventures will be both business practical and environmentally friendly? Patagonia determines how its possible ventures will be both business practical and environmentally friendly by turning their company into a eco friendly environment. It clearly states thisRead MoreCorporate Social Responsibility By Porter And Kramer Essay1216 Words   |  5 Pageswithout having to sacrifice its mission. Etsy actively promotes that they are a certified B corporation, a for profit company that wishes to consider the society and environment, in addition to profit, in their decision making process. For Etsy’s case, their goal is to include social change and impact in their metrics of success. To that end, every year Etsy gets evaluated for it’s impact and releases an annual public impact report. Etsy’s business model allows them to succeed only when their sellers