Columbia Sportswear SWOT and PESTLE Analysis

Strength

1. Strong, innovative and unique brand portfolio: Columbia sportswear has a strong portfolio of well-known brands. The 4 brands are Columbia, Sorel, prAna and Mountain Hardwear. All the products under these brands are known for their quality, innovation and performance. Columbia Sportswear is deeply committed to design innovative products and all its research and development efforts are guided towards developing new, functional gear for outdoor enthusiasts around the world. It works with experts of diverse fields like chemistry, engineering, industrial design, and other related fields along with its internal specialists which helped it to create award-winning technologies like Omni-Shade, Omni-Freeze, OutDry Extreme etc. All the product designing is done keeping in mind the consumer feedback so that the products which are developed are able to meet the needs of the consumer.

2. Diversified geographic, channel and category sales mix: Columbia Sportswear is one of the largest outdoor and active lifestyle apparel and outwear companies in the world. It provides its offerings in wide range of locations through multiple channels. Its operating geography is mainly classified into 4 regions: US, Latin America and Asia Pacific (LAAP), Europe and Middle East and Africa (EMEA) and Canada. Each geographic segment predominantly works in one industry: design, sourcing, marketing, distribution etc. In all the regions the products are sold through a mix of wholesale customers and through own DTC business. In the US the products are offered through a mix of around 2920 wholesale customers and DTC business. In addition to this the channel mix here includes around 122 outlet retail stores, 21 branded retail stores and 4 brand specific e-commerce sites. Similarly, the LAAP region consists of around 400 wholesale customers including distributors and EMEA region has 3810 and Canada has 650 of them.

3. Positive brand image and awareness among customers: Columbia sportswear has wide brand recognition. It has been quite successful in maintaining and enhancing the brand image. It works to build and maintain the consumers’ and customers’ connection to the brand which has helped it to create strong awareness and long-term relationship with the customers essential for the success of the business. Increasing use of social media and online advertising campaigns have also played an important role in increasing the awareness among the new generation customers. Special jackets from Columbia's stable were highly popular and rapidly flew off shelves; they featured breathable waterproof fabric and interchangeable shells and liners. Columbia’s ability to adapt itself to continuously changing media environment has also helped it to remain ahead in the race. It also rightly connects with the consumer sentiment by highlighting its sustainability policies and related design, sourcing and operations designs.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Multiple initiatives taken towards conservation and sustainability: Since 2014, Columbia has been measuring the greenhouse emissions from its facilities in North America. It uses solar panels to create electricity. In 2018, 324,190kWh of electricity was generated in Portland. It has a Strategic Energy Management program to assess how energy is used in its buildings and improve it. It also partnered with Oregon Department of Transportation to clean up highways. It has always taken steps towards conserving nature. It also launched donation programs towards supporting clean water. It has also invested in programs that provide clean drinking water to communities. It partnered with Planet Water Foundation, a U.S nonprofit organization, to provide access to clean water. It also has taken multiple initiatives towards recycling and closed loop practices so that resources last even longer.

2. Development and adoption of green chemistry to deliver sustainable products: Columbia has been working to deliver products which exceeds the customer expectations for safety, compliance and sustainability. It is done by the development and adoption of green chemistry through implementation of input stream management concepts and best practices from the industry. It also works for safe use of chemical alternatives in its products. In order to develop and adopt leading industry standards, Columbia joined bluesign technologies as system partner in 2016 which provides it independent and systematic chemicals management solution for textile production. It establishes standards for raw material and manufacturing facility certification which ensures that chemicals are screened and verified before use. The aim of the whole process is to ensure that all harmful and hazardous substances are removed right from inception of the manufacturing process so that the final product meets consumer safety requirements and also is safe for the people within the supply chain.