Patagonia Case Study

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Patagonia

Case Study Analysis

July 22, 2014

La Tanya terrones

July 22, 2014

La Tanya terrones

Introduction

As resources and commodity’s decrease, it is harder and harder to make a difference in the world today. Patagonia continues to work hard to do their part with the resources that are available. Patagonia is a privately held outdoor clothing company based out of Ventura, California that generates yearly sales of approximately $540 million. Patagonia has developed outdoor apparel that is marketed towards outdoor sports, travel and every day wear. The company integrates its core values into every product that it produces. They are known for their innovative designs, and environmental responsibility. Its high integrity and commitment to the environment has placed Patagonia on the Ethisphere Institute’s “World’s Most Ethical Companies” list for six consecutive years since the list was first developed in 2007 (Unknown, WME Honorees, 2012).

This case analysis will examine the history of Patagonia, and its business philosophy. Patagonia’s business model will be evaluated as well as the captured cost and value of the company. Next, we will examine Patagonia’s environmental position and its sustainability. The product lifecycle initiative will be analyzed and how well it worked for the company. Patagonia’s financial statements are important to determine the success of the company’s financial goals. Lastly, I will share some lessons that I learned from Patagonia and this case study.

History

Patagonia was started from one entrepreneur’s passion. YvonChouinard, founder of Patagonia, developed a passion for rock climbing. In 1953 his passions brought him west to the San Fernando Valley in California, where he became an expert at climbing. He knew that he couldn’t explore his passion of climbing the way he wanted to because of limited appropriate climbing gear available. The only available climbing gear were...