1. Strategy: Patagonia’s product differentiation as their strategy, through CSR, which involves sustainability, philanthropic initiatives, moral obligations, and reputation. They operate in ways to secure long-term economic performance by avoiding short-term behavior that is socially detrimental or environmentally wasteful. They do this all while keeping their quality high and having their core consumers in mind.
Activities Patagonia employs to support the customer’s willingness to pay: Suppliers & Resources
Works closely with suppliers
To create the technical innovations required
Collaborates with fabric and fiber producers to create superior fabrics
Does not buy commodity fabrics
Over ½ the products were made in North America & Europe
Opportunity
1. Market to younger target audience
2. Reduce the length of its supply chain so they can react faster to customer demand
3. Replenish goods automatically to meet demand
4. Make a lower end, lower cost product line
5. Backward vertical integration
6. Increase recognition by branding
7. Extend Product line
8. Go into new regions
9. Build more retail stores
10. Increase environmental activism
11. Increase online awareness
Threat
1. Competitors(North Face, Timberland, Columbia Sportswear)
2. Columbia Sportswear has a footwear line
3. Northface makes camping gear
4. People that won’t pay a premium
5. Competitors enter into their niche
6. Competitors lower prices
7. Competitors have a mainstream presence
8. Competitors entering emerging markets
9. Aging Target Market
10. Competitors economy of scale
11. Scattered supply chain
Strength
1. Reputation, Integrity, and Quality
2. Design and development
3. Works close with suppliers
4. Trickledown effect from innovation
5. ½ the products are developed in N. America and Europe
6. Defect rate 1/10th the industry rate
7. Long-term relationships with producers
8. Able to make people pay 15-20% more for their product
9. Retail stores are owned by Patagonia so they can control the end result
10. Return rate for internet and