Patagonia, Inc.

Capstone Presentation

Introduction

Patagonia, Inc.

Is an American apparel company based out of Ventura, California that specializes in outdoor sports gear and outwear such as skiing, rock climbing, surfing, and other soft sports

They were founded by Yvon Chouinard in 1973 originally selling rock climbing gear like rugby shirts and hand-forged pitons

Purpose

The purpose of this assignment is to give you an overview of some of the companies most important strengths, weaknesses, opportunities, and threats and the solutions for them through the lens of my chosen topics

This includes:

  • Strategic Management, BUSB-481
  • International Business, BUSB-342
  • GIS for Business, BUSB-433
  • Principles of Marketing, BUSB-340

Strengths

  • Eco-Friendly Operations: value-oriented and environmentally focused, positive business practices, and transparency (Worn Wear and Don't Buy this Jacket initiative)
  • Effective Marketing: a well-respected brand with high customer retention
  • New Market Experience: Already have experience in transitioning to new markets
  • Community-Centric: put customer and employees over corporate gain doesn't cut corners to obtain their goals.

Weaknesses

  • Dependence on the US Market: revenue relies heavily on one market could be crippling in case of a recession in the U.S.
  • Weak e-Commerce presence: Patagonia failed to increase online sales.
  • Low Market Presence: wanting customers forced to buy from competitors due to limited availability/accessibility

Threats

  • Climate Change: rapid temperature changes could ruin supplier crops a lead to a lack of resources. scarcity of resources
  • Declining Retail Sector: people are becoming more frugal with money. Much of the decline can be attributed to the pandemic (accelerated) and Amazon (cornered the market)
  • Global Pandemic: forced Patagonia to close walk-in stores, revenue and profit threatened. fewer people with a reliable income. fewer people inclined to buy Patagonia's expensive gear

Opportunities

  • Strengthen Market Presence: not as widely recognized as they could be.
  • Exploit e-Commerce Channels: more people buy online than in person.
  • Extend Product Line: more products other than the clothing they can market.

Bottom Line

By revamping its online and walk-in store presence Patagonia will evolve and grow as a company if they expand their reach internationally. With that will come the need to expand the product lines and include more variety as preferences change depending on what part of the globe they are expanding to.

If Patagonia chooses to pursue a localization international strategy they will need to collect relevant data and demographics such as buying patterns, weather patterns, and preferences based on the individual culture and local regulations.

This sort of data can be collected and prioritized by programs like a geographical information system utilized by the Living Atlas and Esri.

All of this can be accomplished while maintaining and spreading their eco-friendly and environmentally focused values to others around the world.

Implementation

They Can...

Hire website designers and redesign their e-stores to better provide an easy and customer-friendly online shopping experience.

Expand internationally physically and virtually so customers can purchase from their stores without worrying whether or not Patagonia's products are available for sale in their home country.

Utilize a localization strategy that caters toward the customer through regional and local data of individual preferences, customs, weather, and legal regulation. Data collected through GIS.

Further, enforce store policy to ensure all products come from reputable and fair trade certified providers.

Utilize and push for new-product strategy development in order to expand their currently limited product lines.

This new product should include recycled materials. For Patagonia utilizing its sustainability strategy to produce its products is basically its differentiation strategy as it is a major point of difference that makes and has made Patagonia stand out among the other sports retailers since its inception.

In Conclusion...

Patagonia strives to “build the best product, cause no unnecessary harm, use business to inspire, and implement solutions to the environmental crisis” (Patagonia mission statement, 2020).

With these self-imposed guidelines in mind, Patagonia's overall performance has been satisfactory but has plenty of room for improvement if they wish to obtain 100% environmental sustainability with its business operations.