Case study: patagonia
Patagonia was Initiated by people who were hooked on climbing mountain and traveling around the world. Their business Ideas and concepts were originated from their passion and demand of better equipments. Founders of Patagonia even rotate in business management, some of them traveling around and enjoy climbing while others work hard in the company. Their vision and mission which they emphasized environmental sustainability was steadfast. Unlike other normal companies, they seem to put sustainability ahead of maximizing the profit.
At the first glance, it sounds radical or hard to understand that business doesn’t set its first goal as profit. However, the business performances and their achievements on preserving environment make us give a second look on Patagonia. Even when their business was difficult to be lucrative, they didn’t compromise by forgiving the quality or sustainability. Also, Patagonians tactics for achieving their goal was multi-delusional. Not simply donating some portion of their revenue or trying to reducing pollutions, they cared human resources, logistics, raw materials, and customers’ behaviors.
These efforts not only realized the vision of Patagonia, but also made Patagonia a brand for representative of CEO-friendliness.
We can say their vision for sustainability eventually became the core competence of it Question 1 – When we evaluate Patagonians business model, how important is its environmental position to Patagonians business model? At an external level, Patagonians goal for achieving sustainability was well FLT with the trend. As people have become more interested In environmental issues, some people are willing to pay premiums for products caring for environment.
Also, governments encouraged and complimenting the efforts to save environment. Patagonia came to be introduced by government to mass media. The paradox vision for sustainability actually benefits for the consumers as well.
If the environments were destroyed and natural attractions are ruined, then it would be the hikers and climbers’ loss. So, the consumer groups could be more supportive to Patagonians initiative and less elastic to relative high price. The business model of Patagonia was therefore a practical thing overall. However, there could be a threat at the embryonic or growth stage of the industry cycle.