The Efficacy And Sustainability Of Patagonia's Strategy

1469 Words Aug 2nd, 2016 6 Pages
This report seeks to assess the efficacy and sustainability of Patagonia’s strategy, its success in being an industry role model and the prospects of its Product Lifecycle Initiative in generating profitability and improving the environment.
Business Model and Overall Strategy
Patagonia’s value proposition is based on embedding environmental sustainability in every business decision it makes. Its core strategy is differentiation by focusing on durability and quality of products whilst minimising its carbon footprint and use of synthetic ingredients (what). The business model revolves around developing innovative technologies and influencing competitors and suppliers alike to adopt environmentally-friendly processes (how). Commitment to these causes while maintaining quality has allowed it to develop a loyal customer base amongst high income groups and athletes (who) and significantly increase customer’s willingness to pay.
Products are sold not only via wholesale and catalogue/internet channels but also through 52 dedicated retail stores which provide a sense of community to customers. Value Curve Analysis (Appendix 1) reveals that Patagonia scores highly on qualitative aspects of customer experience and products which offsets higher prices. It has multiple unique product offerings consisting of patented technologies and designs such as Synchilla, Capilene and insulated wetsuits which could be considered as its Valuable, Rare and Inimitable (VRI) resources. However, it’s…
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