Patagonia Case Study

- Group 2 – Raido K. / Antonio B. / Vanessa U. / Audrey / Olivier

L./ Jiayue W.

_ COMPANY’S BACKGROUND

_ PHILOSOPHY

The mission: to build best products, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.

Influenced by Zen culture: it helps to orient the goal away from profits toward «doing things right»

Business can inspire positive changes: Patagonia as an experiment to challenge conventional wisdom and present a new style of responsible business.

_ MARKET POSITIONING Environmental, safe, and

efficient products

Higher price than most of its competitor but still affordable

Target a variety of markets for men, women and children (backpackers, climbers, kayakers, surfers) in 7 countries

One of the most actively involve outdoor company in the world (the best reputation)

Based on the charisma and leadership of Yvon Chouinar

_ BUSINESS MODEL

Environmentalism as a Business Model

Making profit and meeting ecological challenges

A new philosophy of doing business

Freedom of choices and acts

Original way of dealing with HR

Respect of outsourcing

PeoplePlanet

Profit

SUSTAINABILITY

TRIPLEBOTTOMLINE

1% percent of gross sales to an environmental partnership organization called 1% For the Planet

$100000 spent on field-testing + $ 3 million dedicated only to research and development (2010)

$350.000 annually spent in repair, refund and replace product services

Less than 1% of sales revenues spent in advertisement

Profit

“We believe the best way to get press is to have something to say…What works best for us are paid announcements for a new store opening or to create environmental awareness of a specific issue.”

(Yvon Chouinard, Patagonia founder)

Planet

Commitment in « One Percent for the Planet »

Helps from the government: grants and support

Reducing the environmental impact (e-Firbers)

Using sustainable products (organic cotton)

Transparency of the footprint

People

Employees    share the values with the company    support to work for environmental organizations

support to make environmentally beneficial decisions

support for outdoor activities 

Local communities   donations to environmental groups    promotions to reduce consumption

Promoting usage of organic cotton among competitors

One of the best companies to work for!