Case ID: 711020     Solution ID: 28597

Patagonia Case Solution

Abstract

Since Patagonia is a producer of high quality garments but also those that are uniquely environmentally friendly, it can without doubt charge a much premium price to its customers. The company is doing wonders through its environmental mission since it is playing a role as a donator to environmental causes which is not only creating a positive impact on its own production culture but is also influencing other firms to act responsibly too. Patagonia can be said as the only company that has managed to keep a much stronger stance in environmental issues and thus allowed them to persistently maintain a relatively larger gross profit margin than its opponents and it is not a surprise if it has mapped out a 10% annual growth rate in sales. It was the spring of 2010 that the company had streamlined its processes in order to bring out yet another wonder by the name of Product Lifecycle Initiative (PLI). An initiative of such a radical nature was aiming to lengthen the lifecycle of each product and reduce landfill waste. It involved the company to indulge in the project wholly, taking responsibility of the product throughout its lifecycle from origination to expiration and leading to re-origination too. It can be said that it was all about a mutual communication between the company and the customers to reduce, repair, reuse and recycle the apparels that have been bought.


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