• 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)

    In JD, the "lifestyle guarantee" which aims to give managers time for a life outside work is a good shared value. The managers work a 48 hour week with two consecutive days off and a maximum of four late closures a week.

  2. Unit 9: Marketing Strategy

    match exactly what consumers desire, this will generate greater customer loyalty and higher profits. Age I predict that the age groups using my business are people in their 30s and those above retirement age. This is due people over the age of 65 having more spare time on their hands

  1. Infosys and Corporate Social Responsibility in India

    The company as an entity is greatly supportive of its employees in executing the initiatives. The employees are made to pledge that they will make a difference to the society on a consistent basis. For effective execution, the company has individual divisions which run independent of each other under major

  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. NHS change management

    Basic assumptions are organization's culture in Schein Model. Huczynsky & Buchanan mentioning that they are "invisible, preconscious and taken for granted understandings held by individuals with respect to aspects of human behaviour, the nature of reality and the organization's relationship to its environment".

  2. NETFLIX CUSTOMERS SATISFACTION

    good business str?tegy. ?lso, the rese?rcher will focus on ev?lu?te ?nd ?n?lyze Netflix str?tegy. The rese?rcher will use mixed method in conducting this study. The popul?tion of the study will include Netflix ?dministr?tors ?nd consumers in C?liforni?. The rese?rcher will focus on Monterey ?re?

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

    Chapter 4 Research Analysis In general nearly ten billion pounds are going to be spent in order to host the Olympic and Paralympic Games in London in the year 2012. There are huge expectations that the London 2012 Olympics and Paralympic games are going to benefit their country in the

  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