4. Opportunities for Patagonia

An example of how Patagonia turned their philosophy into action

Starting with my SWOT breakdown for Opportunities:

Demographic

FLA (Fair Labor Association) and Bluesign Technologies have been invaluable partners in improving social conditions in the supply chain. Bluesign performs regular audits of members who agree to establish management systems to improve environmental performance in five key areas of the production process: resource productivity, consumer safety, water emission, air emission, and occupational health and safety (Patagonia, 2012). I don’t see this reference in the reference section. Do you still have the link to this? Influencer partnerships offer an avenue for Patagonia's values to echo beyond its own voice. When influencers, who are paid or not, share their lifestyle while wearing/using their gear; it's an endorsement for the brand (Openr, 2023). Patagonia could invest in developing outdoor education programs and experiences, such as guided adventure tours, workshops, and skill-building classes. This could help the company foster a deeper connection with its customers and promote outdoor recreation and environmental stewardship.

Environment

In 1991, the company began a life-cycle analysis of the four main materials used in its products to fully understand the environmental impact at each step in the production process. It completed an analysis of 150 of its products (Chouinard & Stanely, 2012). Which is 80% of its products. After the finding, they reevaluated the materials and processes used to make their products. In 1996, they switched to only using organic cotton instead of conventional cotton. This switch saved 20,000 liters of water. (Claudio, 2006). To get a better understanding of the supply chain they reduced the number of factories by one-third. (Chouinard, 2016). This allowed for better communication and ensured that all of their factories made products with the same environmental standards.

Market

Patagonia showcases this benefit in the steps they have taken to make its supply chain more sustainable. In 2007, the company reduced its suppliers from 108 to 45 (Patagonia, 2012). The opportunities this has opened for the company have given them greater efficiency and improved communication between the company and its suppliers. This can then transfer to better financial benefit opportunities. With the rapid growth of online shopping, Patagonia can further invest in its e-commerce platform and digital marketing efforts. (SWOT Analysis, 2021). Even though they’ve pulled paid commercial advertisements from social media platforms this may behoove them to start to add some back. Expanding Worn Wear program. Patagonia can further develop and promote its Worn Wear Program, making it more accessible to customers globally could really make an impact. They could achieve this by advertisements and expanding the range of accepted items. (SWOT Analysis, 2021).

Governance

Through partnerships and innovation, Patagonia has set about to change the status quo and make sustainable business a standard practice for their future. They are transparent with what they’ve done in the past but also what they are working towards and ask the public (you and me) to keep them accountable. They even shared three very steep goals they hope to reach by 2025-2040 that are mentioned in the introduction (Our Environmental Responsibility Programs, n.d.).

Now, let's get into Growth potential in emerging markets with a rising demand for sustainable products and Consumer Trends and Awareness

Patagonia's growth potential could be expansive. With their heart on, "We’re in business to save our home planet.” Their bigger-than-life business mission, well-orchestrated with their marketing team, made them one of the most talked about advertising pieces of 2022. Since they are willing to put their money with their mouth is and discouraging over consumption with their "Don't buy this Jacket" campaign I feel an opportunity for them would be to partner with women shelters and people overseas where the need is high and donate some of their products. It would allow for the brand to expand its demographic is another meaningful and positive way. Since they aren't concerned with losing business and encouraging their consumers to use the Patagonia products, they already own this shows what's most important to the brand is the environment. time and again they will choose the path most sustainable. To continue their innovative practices in further philanthropy work in humanitarian efforts, I feel, would have the brands name in even more people's mouths. Spreading their message, their mission and their brand.

Patagonia affects policy and practice by showing their conviction to lead. They also have great power in influencing policy through its unique corporate structure and purpose-driven initiatives (which seems to be their biggest opportunity.) When it comes to Corporate Alliances and Initiatives: Over the years, Patagonia has collaborated with other corporations to develop initiatives aimed at reducing environmental impact. They have been pioneers in clothing technology development and manufacturing, emphasizing sustainability. Moreover, by partnering with like-minded companies, Patagonia amplifies its influence and advocates for responsible business practices.

Lastly, I want to touch on consumer trends and awareness. I feel there are two categories here, 1. Environmental & Social Responsibility and 2. Education & Awareness. In the first camp Patagonia actively addresses its environmental and social impact. They have well-thought-out programs to guide how they make materials and products. The company also encourages customers to take responsibility for the life cycle of their products through repair, reuse, and recycling. Initiatives like monitoring supply chain information, donating profits to environmental organizations, and creating the Worn Wear platform (to resell used Patagonia clothing) contribute to their sustainability efforts.

In regard to edcuation, Patagonia leverages its popularity to raise awareness of climate change and environmental issues. They also invest in education and engagement initiatives to drive consumer behavior change. These efforts help consumers make informed choices about sustainable products. I feel their opportunities are expansive and endless.

Lessons for Other Companies:

Patagonia’s model demonstrates that when a company’s values are integrated into its business practices, it can reduce harm and do good simultaneously.

Their approach prioritizes long-term health and environmental impact over short-term profit.

Other companies can learn from Patagonia’s commitment to steward-ownership and purpose-driven governance.

In summary, Patagonia’s potential lies in its purposeful ownership structure, collaborative alliances, and unwavering commitment to environmental responsibility. It serves as a model for businesses seeking to make a positive impact beyond profits. I will end on the note that, Patagonia’s clothing is inseparable from its environmental advocacy.

It will be interesting to see if the contiued changes, goals and mission made by Patagonia will inspire other purposeful businesses to consider shaking up their ownership structure to achieve their long-term goals as well. Can you think of any other steward-owned brands that are simialr to Patagonia? I can think of one, IKEA. Take a listen to this podcast on how IKEA evoloved its strategy while keeping its culture consistent.

Activism and responsibility can benefit businesses through positive publicity and customer loyalty, but as companies grow and increase their footprint, they must adapt to ensure that their efforts to be environmentally responsible remain uncompromised.-Grace Kortum

Signing off, until next time!

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Citations:

Photo 1:(2024). Don't Buy This Jacket [Photograph]. Brandthechange.org. https://brandthechange.org/blog/inspiring-brands-for-change-patagonia

Photo 2: Tyler, L. (2023). Patagonia: A Purpose-Driven Brand Built on Action. [Photograph]. DesignStripe. https://designstripe.com/blog/patagonias-brand-impact

Video: [Patagonia]. (2017, June 16). The Stories We Wear: Fred Casenave | Patagonia [Video]. YouTube. https://www.youtube.com/watch?v=NS_Bk3OC-bg&t=170s

A. U. From the Outside In: Corporate Social Responsibility at Patagonia [Lecture on Corporate Social Responsibility at Patagonia]. Center for Ethical Organizational Cultures Auburn University. https://harbert.auburn.edu/binaries/documents/center-for-ethical-organizational-cultures/cases/patagonia.pdf

Chouinard, Y., & Stanley, V. (2012). The Responsible Company: What We've Learned From Patagonia's First 40 Years. California: Patagonia Books.

Chouinard, Y. (2016). Let My People Go Surfing: The Education of a Reluctant Businessman (1st ed.). New York: Penguin Press: Penguin Audio.

Claudio, L. (2006). Waste couture: Environmental impact of the clothing industry. National Library of Medicine, 115(9), A449-A454. https://doi.org/10.1289/ehp.115-a449

Openr (2023, September 6). Unveiling Patagonia’s Target Audience: Who Connects with the Brand? Retrieved July 15, 2024, from https://openr.co/unveiling-patagonias-target-audience-who-connects-with-the-brand/

Our environmental responsibility programs. (n.d.). Patagonia. Retrieved July 13, 2024, from https://www.patagonia.com/our-responsibility-programs.html

Patagonia (2012, April 9). Patagonia Clothing: Made Where? How? Why? Retrieved July 13, 2024, from https://www.patagonia.com/stories/patagonia-clothing-made-where-how-why/story-18467.html

SWOT Analysis (n.d.). Patagonia SWOT Analysis. Retrieved July 13, 2024, from https://thestrategystory.com/blog/patagonia-swot-analysis/

(2024, January 17). How IKEA Evolved Its Strategy While Keeping Its Culture Constant. Harvard Business Review on Strategy. Retrieved July 15, 2024, from https://hbr.org/podcast/2024/01/how-ikea-evolved-its-strategy-while-keeping-its-culture-constant

Uniyal, J. (2024). Exploring The Role of Education and Awareness Campaigns in Shaping Consumer Behavior Towards Green Products. International Journal for Multidisciplinary Research, 6(2), 1-14. https://doi.org/IJFMR240215324

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