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Patagonia SWOT & PESTLE Analysis

ID : 52957153| Jun 2021| 12 pages

COMPANY PROFILE -Patagonia

Business Sector :Retail, Clothing Company

Operating Geography :United States, North America, Global

About Patagonia :

Patagonia, Inc. is an outdoor apparel company based in Ventura, California, United States. The company was established by Yvon Chouinard in 1973. Patagonia's product range include clothing for activities, such as surfing. They sell athletic equipment, backpacks, sleeping bags, and camping food, among other things, in addition to clothing. The company owns and operate offices in the United States, the Netherlands, Japan, South Korea, Australia, Chile and Argentina. The firm also operates two distribution centres— its facilities where it receives goods from factories in the US and overseas—and more than 70 Patagonia stores worldwide. The organisation collaborates with other businesses all over the world to reduce the damage caused by clothing production. The American retailer holds its suppliers to the industry's highest environmental and social standards. To control this process, it relies on industry resources and guidelines, and when these aren't available, the organisation creates them. Patagonia has vowed to donate 1% of revenue to environmental protection and restoration and it's business and individual members give directly to highly vetted environmental non-profit organizations. In April, 2021, Patagonia launched the We the Power website and documentary to highlight the growing community energy movement in Europe. The campaign's goal is to demonstrate the benefits that a renewable energy revolution will bring to people and the environment.
Patagonia's Unique Selling Point or USP lies in its clothing which is Fair Trad Certified™ and made from organic cotton, free from synthetic pesticides, herbicides, and GMO seeds. Patagonia's mission statement reads, "we're in business to save our home planet".

Patagonia Revenue :

Competitive Analysis of Patagonia

SWOT
PESTLE

The SWOT analysis for Patagonia is presented below in a matrix followed by the detailed analysis report

StrengthsWeaknesses
1. Highly effective marketing targeted at environment conscious consumers
2. Diversified product line and operations
3. Employee first policy
4. Strong focus on brand purpose
. Struggle to fix supply chain issues
OpportunitiesThreats
1. High growth potential for Asian outdoor apparel market after COVID-19
2. Brand extension possibilities
1. High competition in the outdoor apparel market
2. Pandemic resurgence across the world
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Detailed SWOT Analysis of Patagonia

Strength

1. Highly effective marketing targeted at environment conscious consumers: Patagonia’s marketing strategy is aligned with its purpose of protecting the environment, and the marketing efforts are targeted at environmentally conscious consumers. The highly visible efforts of the company to save the environment has endeared it to consumers and have led to increase in revenues, defying mainstream logic. For instance, an ad in 2011 had actually discouraged customers to buy one of the company’s best-selling fleece jackets, asking people to consider using a used Patagonia product instead. This campaign led to a 30% growth in revenues to $543 million in 2012, and another 5% growth in 2013. This shows that the marketing efforts have led to consumers trusting the company and buying the company’s products.

2. Diversified product line and operations: The company believes in reducing business risk through diversification of product lines and operations. The American clothing company has diverse distribution channels for putting its products in the hands of end consumers. These channels are dealers, own retail stores, mail order and ecommerce. The distribution happens worldwide. This diversity of distribution gives the company an advantage during times of recession because the downfall in wholesale sales would be offset by direct sales channels as there would be no reduction in demand for the products from loyal customers. The business across geographies of North America, Europe, Asia and Latin America shields the company against downturns in any of the areas.

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Opportunity

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Threats

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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Patagonia SWOT & PESTLE Analysis Report

1. At Billionaire-Owned Patagonia Outdoor Clothing Chain, Employees To Be Paid Despite Store Closures Amid Coronavirus - https://www.forbes.com/sites/willyakowicz/2020/03/16/at-billionaire-owned-patagonia-outdoor-clothing-chain-employees-to-be-paid-despite-store-closures-amid-coronavirus/?sh=46a6427a7edd
2. Finding Success by Putting Company Culture First - https://www.entrepreneur.com/article/219509
3. The Success of Patagonia's Marketing Strategy - https://www.investopedia.com/articles/personal-finance/070715/success-patagonias-marketing-strategy.asp
4. Patagonia’s Focus On Its Brand Purpose Is Great For Business - https://www.forbes.com/sites/veronikasonsev/2019/11/27/patagonias-focus-on-its-brand-purpose-is-great-for-business/?sh=d8d98cf54cb8
5. Supply chain breaks down at Patagonia - https://www.kcrw.com/news/articles/supply-chain-breaks-down-at-patagonia
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Patagonia SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/patagonia/ [Accessed 24 Sep, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Patagonia SWOT and PESTLE analysis has been conducted by Nipunn V and reviewed by senior analysts from Barakaat Consulting.

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