Q1 - Evaluate Patagonia’s business model. How important to Patagonia’s business model is its environmental position? It all started out in 1957 when Yvon Chouinard–Emeritus and a couple of friends began to make pitons. Nine years later in 1966, Chouinard opened a shop I Ventura, California.
To understand Patagonia’s business model, it is necessary to gain an insight into the company mindset. This could seem as a challenging job but Patagonia’s Mission Statement explains it quite well: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis”.
Patagonia is a manufacturer of high quality outdoor and adventure sport clothing. So they strive to act as environmental as possible when producing the best available product. To break it down, Patagonia sells
"text-align: justify">I will in the following review the Triple Bottom Line, also called the three P’s – with focus on the environmental aspect for Patagonia.
People To be hired at Patagonia the candidates have to be aligned with the right mindset, a ‘dirtbag’ like Chouinard and Sheahan are highly valued in the firm. That means sustainable thoughts and innovative-environmental-attention is important, so they can achieve the best possible quality while it has to be multifunctional. The R&D department is crucial because they develop new workflows and new ways to produce as eco-friendly.
Planet Chouinard, the founder of started to donate 1% of the revenue each FY. It resulted in an organization called ‘1 % for the planet’ which have several hundreds of members worldwide all donating 1 %. Furthermore they invest in optimizing the production facilities so it is as
eco-friendly as possible – cause no unnecessarily harm.
Profit Patagonia’s net sale has grown since 2003 and with a gross profit margin on 52.6% it is doing better than Timberland and Nike. The constantly increasing turnover is a result of the activities and position towards the environment.
Patagonia’s business model and the early focus on environmental issues have made them pioneers within CSR. The environmental factor is very important for Patagonia’s success and their ability to maintain profitable.
These initiatives reflect and affect peoples understanding as well as the publics. Patagonia does a good job that makes them a reliable and trustworthy company; costumer’s want to support Patagonia because of the environmental focus and the good quality, which is multifunctional and useable.
To break it down in fractions; I do not think that Patagonia would exist if it was not for the cause no unnecessary harm approach and their support of the environment.
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