Patagonia s Business Strategy
Faculty of Business, Economics and Statistics
Business Strategy
Winter Semester 2014
Group assignment
Patagonia and the outdoor apparel industry
Vienna 5th of December
Analysis of outdoor apparel industry
Outdoor apparel is a rapidly growing segment of the global sport clothes market, which develops technologically in an ongoing way. One of the leaders on this market is an american apparel brand Patagonia, which was established in 1972. This company produces high-performance, but fully non-hazardous for the environment clothes, while trying to address to all other businesses the message that there can be a profitable industry with environmental friendliness at the same time.
The customer segment for this company are people between 18-35 who love sport, nature, eco-friendly products and probably their willingness-to-pay more money is high, because of the high-quality of the clothes. Besides, the company always invested in innovations that benefits customers and make their satisfaction much higher. Distribution channels of this company are: large department stores, its Web site, catalog and wholesale business. As to consider internal consistency, the company’s goal is to use resources such as organic cotton and recycling in such technological way, so that it could cause no harm for the environment. In reality, these techniques bring the company more attraction and therefore more earnings. The other goal of the company is the simplicity. In spite of the fact that the company is private and can play like other businesses, it has minimum bureaucracy and even gives huge donations every year.
There is a monopolistic competition on the market with a lot of direct competitors against Patagonia, such as The North Face Inc., Marmot Mountain Ltd., Mountain Hardware, Arc’teryx and many other high-performance and high-quality apparel companies. These brands are producing non-differentiated products, i.e. approximately the same high-end outdoor clothes, which
Business Strategy
Winter Semester 2014
Group assignment
Patagonia and the outdoor apparel industry
Vienna 5th of December
Analysis of outdoor apparel industry
Outdoor apparel is a rapidly growing segment of the global sport clothes market, which develops technologically in an ongoing way. One of the leaders on this market is an american apparel brand Patagonia, which was established in 1972. This company produces high-performance, but fully non-hazardous for the environment clothes, while trying to address to all other businesses the message that there can be a profitable industry with environmental friendliness at the same time.
The customer segment for this company are people between 18-35 who love sport, nature, eco-friendly products and probably their willingness-to-pay more money is high, because of the high-quality of the clothes. Besides, the company always invested in innovations that benefits customers and make their satisfaction much higher. Distribution channels of this company are: large department stores, its Web site, catalog and wholesale business. As to consider internal consistency, the company’s goal is to use resources such as organic cotton and recycling in such technological way, so that it could cause no harm for the environment. In reality, these techniques bring the company more attraction and therefore more earnings. The other goal of the company is the simplicity. In spite of the fact that the company is private and can play like other businesses, it has minimum bureaucracy and even gives huge donations every year.
There is a monopolistic competition on the market with a lot of direct competitors against Patagonia, such as The North Face Inc., Marmot Mountain Ltd., Mountain Hardware, Arc’teryx and many other high-performance and high-quality apparel companies. These brands are producing non-differentiated products, i.e. approximately the same high-end outdoor clothes, which