Case ID: 711020
Solution ID: 28597

Patagonia

Case Analysis

Patagonia produces high-quality environmentally friendly garments that command significant price premiums. Its environmental mission motivates it not only to donate to environmental causes and reduce the impact of its own production, but also to share its practices with other companies. While pursuing its strong environmental stance, Patagonia maintains a larger gross profit margin than its competitors and is targeting a 10% rate of annual growth in sales. In spring 2010, Patagonia was in the process of implementing a new, radical environmental initiative called Product Lifecycle Initiative (PLI). This initiative represented a holistic commitment to lengthen the lifecycle of each product and reduce landfill waste. It constituted Patagonia's efforts to take responsibility for the products it made, from birth to death and then beyond death, back to rebirth. The initiative consisted of a mutual contract between the company and its customers to reduce, repair, reuse, and recycle the apparel that they consumed.


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