Patagonia case study
Patagonia – A company true to its value
KEY PROBLEM
Patagonia known as the “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 making huge profits but their main focus is to sustain the core value of the company.
Patagonia’s technological innovation and environment conservation initiatives are the two things that differentiate it from its competitors. Patagonia persistently tried to improve the environmental impact of its processes. It has always been an eccentric company, its strive for sustainability has encouraged it to take up a new initiative where it will encourage consumers to buy less of new Patagonia’s apparel and ask them to reduce, repair, reuse & recycle. Therefore the challenge before Patagonia is that how will the company’s intention to encourage consumers to buy less in order to lower the environmental crisis from over consumption, lead to targeted growth rate? Achieving Targeted growth, making profit and sustaining company’s values seem difficult to achieve.
RELEVANT THEORY
The case of Patagonia involves the intention of the company to take up a new environmental initiative and target an increase in sales by 10% for the next five years. It has a unique business model which is purely based on the philosophy of making least environmental impact over the entire value chain. The most important part of this business model is the company’s
KEY PROBLEM
Patagonia known as the “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 making huge profits but their main focus is to sustain the core value of the company.
Patagonia’s technological innovation and environment conservation initiatives are the two things that differentiate it from its competitors. Patagonia persistently tried to improve the environmental impact of its processes. It has always been an eccentric company, its strive for sustainability has encouraged it to take up a new initiative where it will encourage consumers to buy less of new Patagonia’s apparel and ask them to reduce, repair, reuse & recycle. Therefore the challenge before Patagonia is that how will the company’s intention to encourage consumers to buy less in order to lower the environmental crisis from over consumption, lead to targeted growth rate? Achieving Targeted growth, making profit and sustaining company’s values seem difficult to achieve.
RELEVANT THEORY
The case of Patagonia involves the intention of the company to take up a new environmental initiative and target an increase in sales by 10% for the next five years. It has a unique business model which is purely based on the philosophy of making least environmental impact over the entire value chain. The most important part of this business model is the company’s