Patagonia_Essay - sustainability Patagonia has a need for...

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April 9, 2008 Patagonia Case Patagonia’s focus on quality as well as capitalization of a very specific market is their most important competency. Their quality comes from their willingness to obtain material from their original producer or even making their raw materials even though the costs can be somewhat high. Furthermore, Patagonia keeps its products quality high by not outsourcing production to countries where labor is cheap yet it is more difficult to maintain quality controls. They also use one producer for certain products, which comes at a higher cost but allows Patagonia to broaden its product range. Patagonia’s refusal to change their ways when it comes to these issues leads to products that are consistently high in quality. Patagonia has a dedicated group of customers because of their commitment to quality and “green” stance. This customer base will allow Patagonia to sustain itself regardless of market conditions or increased competition. As long as Patagonia focuses on integrity and quality products they will have a great advantage for
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Unformatted text preview: sustainability. Patagonia has a need for an improved sales strategy as well as a more efficient manufacturing process if it is to grow. It can be seen that Patagonias retail stores can achieve high margins and therefore Patagonia needs to open more retail stores. They also need to improve their website which can bring in lots of awareness as well as high revenues. Also, as some executives have pointed out, revenues would increase significantly if products arrived in stores faster. Patagonia can do this by narrowing down their most popular products and producing them in larger quantities. This will allow those products to be available more often. In addition this strategy will lead to higher raise revenues by reducing costs because of discounts that some producers offer, as orders get larger. Patagonia can achieve growth without jeopardizing any of its strengths by using some of the methods included above....
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This essay was uploaded on 02/19/2009 for the course AEM 4370 taught by Professor Leiponen,a. during the Spring '08 term at Cornell.

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