SWOT ANALYSIS OF PATAGONIA

by Abhijeet S on Wednesday 24 November 2010, 4:08 PM | Category: Operations| View: 28458 views
 
 
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 SWOT ANALYSIS OF PATAGONIA

Patagonia, Inc. is a Ventura, California-based clothing company, focusing mainly on outdoor clothing. The company is a member of several environmental movements. It was founded by Yvon Chouinard in 1972.

Patagonia offers many varieties of outdoor clothing. Many of their products are marketed towards skiers, campers, surfers, hikers, rock climbers, Nordic skiers and others. Patagonia employs a flex-time policy, allowing employees to take time off to go surfing. One of its main product lines is the Capilene base layer clothing. Patagonia recently started making surf-specific products, and currently has three different lines of wetsuits and many different models of swim trunks.

Patagonia is a major contributor to environmental groups. Patagonia commits 1% of their total sales or 10% of their profit, whichever is more, to environmental groups. Since 1985, when the program was first started, Patagonia has donated $25 million to over 1,000 organizations.

Patagonia co-founded the alliance 1% For the Planet. This is an alliance of businesses who, like Patagonia, commit at least 1% of their total sales to the environment.

Patagonia often features their environmental campaigns in their catalogs and advertisements. Many of their recent campaigns include work with preventing oil drilling in the Alaska Wildlife Refuge, "Ocean As A Wilderness", and "Don't Dam Patagonia".

SWOT ANALYSIS OF PATAGONIA

Strengths

  • High-quality products
  • Environmentally friendly business
  • Manufacturing process
  • Low employee turnover

 

Weaknesses

  • Low employee turnover
  • Few customer loyalty incentives
  • Few high-performance finishes
  • Less fashionable apparel compared to competitors
  • Price

 

Opportunities

  • Increase of online spending
  • Increase of environmental activism
  • Expand target market
  • Expand to new countries

 

Threats

  • Competition (Columbia, North Face, REI, etc)
  • Ageing target market
  • Changing activities, bodies

 

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