• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How successful has Patagonia been as a company? Evaluate Patagonias strategy.

Extracts from this document...

Introduction

How successful has Patagonia been as a company? Evaluate Patagonia's strategy. Overall, Patagonia has been a very successful company over years. Patagonia has created strong brand through producing high quality products to meet tough expectation of customer and win their loyalty. The company maintained high margin with relative small sales revenue comparing to competitors in the outdoor industry. Inside the company, Patagonia's employees showed high satisfaction and loyalty, which led to much lower turnover comparing to other rivals in the industry. Outside company, over years, Patagonia has built up great reputation on the social responsibility. The company has become role model of other organization on resolving the business and environmental conflict because of long term commitment to the environment and society. Patagonia has created and sustained competitive advantage through focusing on the product quality while at the same time reducing the environmental damage. The firm differentiated itself from other major competitors in the industry by focusing on customers who were knowledgeable about their sports and outdoor activities and willing to pay additional amount for superior quality. ...read more.

Middle

These public owned competitors have been forced to move to alternative distribution channels such as large department stores under the pressure of growth. When a company emphasizes on growth, such efforts often reduce uniqueness, create compromise, reduce fit and ultimately undermine the competitive advantages. Patagonia's governance and organizational structure eliminated the pitfall of growth. For instance, in the global market, Patagonia was careful about entering new market, believing that new grow into a new market in such way that would possibly compromise its integrity or lower its product quality. Instead, Patagonia's most international business focused on one small market: Japan which represented almost 20% of Patagonia's total sales, comparing to 11% of total revenue in competitive European market. Another Patagonia's distinct corporate strategy was its ability to win the hearts and minds of employees by providing them quality of work life balance with fair salary. The company was included several consecutive times on Fortune's list of the 100 best companies to work for America. Most of its employees were passionately committed to ensuring Patagonia's business success and achieving its purpose. ...read more.

Conclusion

In this highly competitive industry, a few addition market share can be very valuable. Second, environmental position of Patagonia also contributed to its competitive advantage by differencing it from other competitors in a market where technology improvement has become increasingly challenge. Commitment to the environment while without compromising the quality of the product inspires technical and quality innovation. While Patagonia has strong brand for its quality, its environment position certainly has contribute to the health of the Patagonia's brand, to some extend justifying its premium price over other rivals. Patagonia's environmental position was certainly not perfect without tradeoff. For instance, in the case of Patagonia switch to organic cotton, Patagonia chose to totally eliminating cottons grown with synthetic chemicals, which had negative economic hit due to higher cost for growing and handling organic raw materials. To keep its long term commitment to the environment, Patagonia needs to keep financially healthy so it can spend more on environmental activities. All in all, I believe Patagonia's environmental position contributed to company's competitive advantages in positive ways, such as strengthen the company's uniqueness against competitors, inspire innovation when attempting to reduce damage on environment, and cultivate customers intimacy by winning their trust. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Business Culture & Strategy Analysis Of JD Wetherspoon

    4 star(s)

    Taken for granted assumptions JD has the motto of 'cleanliness, beer, services and maintenance'. In order to meet the standard, the company has done the following things, such as: They sell a wide range of real ale beers at relatively low prices.

  2. Unit 9: Marketing Strategy

    When dealing with this size of competitor I may also have to implement defensive strategies to maintain my share of the market. My Current Considerations in Relation to the Marketing Mix The marketing mix is the set of marketing decisions that a business will make to implement their marketing strategy and to achieve their business objectives.

  1. Asda - Company mission, philosophy, and goals. Overall purpose of the company, its stakeholders ...

    To increase in internet has enabled People from other countries to Visit website and submit applications. This will help ASDA to attract more customers and skilled and talented employees. ASDA uses latest technology replacing paper communication thereby ASDA have been able to show better results of growth by using a

  2. The Diversity of Distribution Channels in the Retailing Industry

    * Rail * Pipe With these procedures merchandise are able to be transported in Europe and globally, There are some organisations that use RORO ferries,( RORO ferries are ferries designed to transport goods from one place to another) piggyback systems and euro channel tunnel.

  1. The main purpose of this research is to know and analyze whether the Olympic ...

    the profits for each and every individual residing in that particular location [6]. 4.10 The boost for sport The London 2012 Games are fastening the process of supply of the world class sports infrastructure for the United Kingdom and especially London.

  2. PEST is a planning tool which is used by a business to evaluate and ...

    do a certain amount of distribution trips each week, this will affect Ginsters as if they need to distribute a certain amount of goods they will have to employees extra van drivers so that no employee works more than 48 hours.

  1. NETFLIX CUSTOMERS SATISFACTION

    This method of research will enable Netflix administrators to determine the main influences or reasons that result in customers' dissatisfaction for discontinuing their service. The population of the research is Netflix administrators and customers or ex- customers in Monterey County , California to gather data, tests, evaluates, and analyzes the research outcome.

  2. Chick-fil-A corporate strategy

    Not venturing too far from their roots, the only diversification strategy Chick-fil-A has implemented since the opening of its first store has been the creation of Truette?s Grill. Truette?s Grill opened in 1996 as a 50?s diner themed restaurant, which features the full Chick-fil-A menu as well as items from the original Dwarf Grill restaurant.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work