CASE ANALYSIS: PATAGONIA INC. Case Solution
Evaluation of the business model
The company has a very strong business model based on high quality products, sustainable and efficient production process and environment friendly manufacturing systems. The company produces high quality products to satisfy the customers to the maximum level.Moreover, the company is socially responsible and investing a large amount on Corporate Social Responsibility (CSR) activities. The company also processes all the products and manufactures them in an environment friendly manner as the company is using nontoxic particles and other chemicals while manufacturing products. Furthermore, the company also secures its innovative products by taking proprietary rights such as patents, copyrights and etc.In addition, the company also has a very low employee turnover rate, which indicates that the company has a huge pool of loyal employees which contributes a lot towards the company’s revenue and margin. The company also has very strong society relationships, which are due to the company’s CSR activities, and these relations also help the company to compete successfully in the market and maintain a positive relation with its stakeholders. However, there are minor weaknesses or flaws, which weaken the business model of the company. These weaknesses include limited suppliers, limited consumer accessibility and limited product line. Finally, the company can ensure a tremendous business model by overcoming these issues.
Importance of the business model as per the external environment
Sustainable and profitable business model is the key to success in this industry as this industry is getting mature and the market growth rate is getting slow. Therefore, every company is on its path to steal other’s share and business idea.
owever, Patagonia had taken initiatives to overcome this threat by taking proprietary rights of its innovative business ideas and products. Furthermore, even after taking these copyrights and patents, the company is still facing trouble with the products as the company cannot take patents of each and every product as it will incur a higher cost and will ultimately decrease its margins..................
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