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

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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. Patagonia strategy based on quality and environmental commitment - reducing environmental whenever possible. The firm has successfully implemented its core strategy  through its choice of activities on product development, marking, organization structure and human resources. All these activities fit well into its strategy and strengthen the competitive advantage.

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On the product development side, Patagonia continuously improved raw materials, and camp up with better product design and paid great attention to the details in the manufacturing process in order to produce high quality products. Patagonia gathered feedbacks on its product from world-class professional athletes to support innovation. It also invested great amount money on in-the-field testing, about double the spending of its competitors to guarantee product quality. Patagonia aimed to create ‘classic’ products whose style would last as long as the product itself. Patagonia maintained long term relationship with its contractors, who normally had 15 yeas tenure comparing to ...

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