Overview of the Patagonia Company

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Tesis de Master

Patagonia draws its success in the competitive outdoor sector from a responsible approach

Acknowledgment

I would like to give special thanks to the whole teachers in Bordeaux and in la Universidad Rey Juan Carlos who gave me the right tools to succeed in my life.

I am also grateful to the academic community in general who have motivated me to be truly involved into my business studies for the past five years.

At last but not least, I am very thankful to my family and friends that have always been a great support for me during my studies and without whom I could have probably not reached this point in my studies today.

Introduction

For many years now, the outdoor market has been in perpetual change. Indeed, throughout the world, users of outdoor activities are more numerous. The reasons given include a net increasing granted to leisure on one hand and on the other hand, the protection of the environment. In fact, the practice of leisure in a natural environment is similar to real outlets because they can break the constraints and the drives of life. Thus we develop a certain longing for global warming and nature more generally. Then people feel always more aware of the environment and generally want to invest more in outdoor activities for new purposes and new conveying equipment brought into play, new spaces, new temporalities and new modes of sociability.

Leisure is subject to multiple challenges as citizens' expectations are numerous. The outdoor seems to have become over the years a social phenomenon with significant economic benefits. Thus, a real commercial market activities that is then developed in recent years and it is in this sector that the company Patagonia has emerged. Thus, many players have come to invest in this sector priori attractive. Fierce competition has therefore put in place gradually, making the most of the improvement activities in nature everywhere.

Patagonia on this industrial society is best known in his home country, namely the United States, even if the brand is trying hard to get a place on the world market for the outdoor market. Nevertheless, the faithful "outdoor players" know these products because their quality and technicality are recognized. But why such a good recognition? In other words, what distinguishes Patagonia from its competitors in the outdoor market? To answer these questions, consider the company as a whole is apparently needed it.

For a comprehensive overview of the company Patagonia, we will implement a procedural approach precise logic. Indeed, studying a company for whatever, make sure to analyze each of its characteristics to derive a general profile. As a first step, we will proceed upstream, a brief overview of the company'' Patagonia'' the scene of our study. Following this, we will try to study more precisely the one hand, the market environment (macro environment) and on the other hand, the environment of the company Patagonia. This study will allow us to highlight the strategies adopted by the company since its inception. In a second step, in view of the work already done, we try to make development opportunities that will arise obviously on various recommendations.

COMPANY'S OVERVIEW.

Concept and values of the company

The American company Patagonia is a wholly-owned quite as innovative. Indeed, it is in an industry booming and seeks to defend specific values. Over the years, the company, the number one U.S. outdoor, thus become a model corporate citizen. In fact, Patagonia is in the market outerwear which is one of the most desired brands in the USA. In general operation of the company, the personality of its famous founder seems paramount. Indeed, it has managed to impose innovative share ideas and managed to keep the group on the fringes of the corporation. By its originality, Patagonia and manages to keep a growing audience. This uniqueness can be brought to light through the list of 5 key points defended by Yvon Chouinard, founder of Patagonia

Profitability: CHOUINARD requires its troops a return of 10% before taxes. This is the only way for him to remain as independent while promoting implement its major principles include those allocated to the protection of environment

Social Policy: flexible schedules and forms management of working timely must help employees balance their work and personal lives.

Activism: employees may be absent up to 3 months (paid) to participate in programs for the protection of nature.

Clean Production: The company seeks to reduce the impact of the activity on ecosystem by making recycled plastic jackets, cotton shirts Organic dyes are less toxic

"Management By Absence", the founder of the company goes up to 40% of its time away from the business, looking for new ideas

b. Company History

1940: Birth of Yvon Chouinard in the state of Maine (USA).

1965: Creation of Chouinard Equipment with Tom Frost, climber and aeronautical engineer who seeks to redefine and improve almost all climbing equipment marketed to make it stronger, lighter, simpler and more functional.

1970: Chouinard Equipment is the leading supplier of climbing equipment in the USA. The company becomes aware of its responsibility to the environment because the material damage created rocks.

1973: Company founded by Yvon Chouinard Patagonia. The company is on the market while high-end clothing for outdoor sports.

1977: Last sale of a fleece jacket revolutionary wicking polyester thread moisture while keeping heat.

1986: The Company undertakes to pay each year 10% of its profits to SMEs that preserve natural habitats and 1% of its turnover to finance environmental projects.

1988: the first national environmental campaign project support of de-urbanization of the city of YOSEMITE USA.

1991: Strong sales decline and inability to credit because the U.S. is in a recession. The company must then be separated from 120 people to remain profitable and independent, where a certain level of awareness on the part of the management team. Indeed, to sustain the company's business, Yvon Chouinard decided to focus on growth "human scale" in order to adapt the organization of the company to cyclical developments.

1993: Yvon Chouinard discovered a polyester made from bottles recycled plastic has the same properties as a normal polyester.

1994: Patagonia decided to manufacture its 100% organic cotton clothes, organic.

1996: Construction of the distribution center based in the city of Reno, Nevada (USA). David Olsen has been appointed CEO of the company while Yvon Chouinard became chairman of the board.

2001: Creation of the association "1% for the Planet", which aims to generalize the commitment Patagonia in 1986 environment.

Moreover, to date, the relatively low level of turnover of the company's founder seems just as it is the result of a desire reflects commercial and accepted.

c. Financial Situation of the company.

The financial situation of the company has experienced many vicissitudes. Since its creation in 1973, the economic burden of the company continues to grow to 103 million in 1991. Then, from 1991 to 1993, the financial situation of the company has experienced a strong whirlpool 1991 (see history of the company). However, this period is over, its turnover has increased continuously reveals that the sustainability of the business of the company. Thus, the figures dated 2007 indicate that the turnover of Patagonia stands at $270 million per year. But why turnover also low for a company known throughout the world? A primary response on us. In the treatment of the issue date of 1994 appears to be a turning point. Indeed, at this date, Patagonia decided to buy only organic cotton to manufacture their products. The company then takes a huge risk. In fact, it turns out that this type of cotton costs 50-100% more expensive than treated cotton. Thus, the purchase of this revolutionary textile still weighs now 20% in the sales of the U.S firm. Despite the inconvenience and misunderstanding of the commercial sector and suppliers, Yvon Chouinard persists and customers agreed to purchase a product certainly expensive (+20% compared to conventional polyester fiber products), but respectful of the environment. Moreover, to date, the relatively low level of turnover of the company's founder seems just as it is the result of a desire reflects commercial and accepted.

d. Areas of business operations

As we can see in the history of the company, its business areas have greatly evolved over the years. Thus, while at first it sold mostly climbing equipment, t...