• 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)

    This may lead to the decrease of profits. The open of new industry can help JD to avoid the problem of decreasing profit. * Using strength to catch the opportunity As JD opened the industry of hospitability, the company has more opportunities to expand its product items.

  2. Unit 9: Marketing Strategy

    Having identified this, I will need to choose a marketing warfare strategy. The four main marketing warfare strategies are: * Offensive - This focuses on strategies which are designed to attack competitors head on, it deliberately targets customers of competing businesses focusing on the theory that they could be won over by a superior deal.

  1. Infosys and Corporate Social Responsibility in India

    CSR Groups and Location Pragati - Bangalore The Volunteers are actively involved in providing additional support to government schools on weekends. They exploit the skills and experience of retired school teachers in Bangalore to assist them in their efforts to provide free education for children in government-sponsored childcare centres and orphanages.

  2. The Diversity of Distribution Channels in the Retailing Industry

    * Reliability and support Distributor Distributors are organisations that work on behalf of international company's that supplies goods to Amazon. Amazons distributors are: * Royal mail * FedEx * DHL Logistics process As I already said that there are 5 logistics process which are * Air * Water * Road

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

    even expected to gain more and more extensive benefits and profits which will improve their economical standards. All these activities have gained more importance because of the visitor interest in watching the Olympic Games lively [6]. 4.5 Benefits to the retailers 4.5.1 Official sponsors The official sponsors are the important beneficiaries of the London 2012 Olympic Games.

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

    This PEST factor could be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of maximising profit this is because Ginsters will have less money coming into the business as people are buying healthier products from other businesses.

  1. NETFLIX CUSTOMERS SATISFACTION

    The lack of customer services in netflix is the key factor in order to dissatisfied the customer. Due to this they are loosing their customers. Researcher will analyse the strategy of Netflix strategy and provide a better solution. The rese?rcher will ?n?lyze, ev?lu?te, ?nd test the collected d?t?

  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