Patagonia

Business Model

(Picture on Phone)

Three Factors (Quality, Environment, Innovation --> How they related)

1. Quality --> (Excellent Prodcus, "Ambassadors") "The company sought to create products that were simple, functional, and multifunctional" 2. Environment --> (Less Damage/Harm) "Committed to reducing the environmental impact of its products at every step of the production process" -Less environmentally damaging dye -Reducing Packaging -New Products organically grown cotton 3. Innovation -->(Investment in R and D) Invested huge amount of money in R and D -Manitniangin a labortary to develop and test raw materials (ex: Developing durable fabrics or making zippers 100% recyclable) All these things lead to the ultimate focus of the company

PLI --> 4Rs (Birth,Death,Rebirth)

1. Reduce --> Limiting consumptions (only essentials) 2. Repair --> Lengthening Product's Lifetime 3. Reuse --> Giving it away, shaping or reselling 4. Recycle --> Return products to Patagonia

Dual Goals (Ultimate Focus)

1. Ultimate Focus --> WILLINGNESS-TO-PAY (Amount customers would pay for products) : Customers Value Creation 2. Higher Price + More New Customers --> Market Share (This is in Red)

Yvonne Chouinard's Business Philosophy (Zen, Climbing, Process, Mission Statement)

1. Zen --> If you're perfected all the elements, you can't help but hit the center of the target (You forget about the goal - hitting the bull's eye - and instead focus on all the individual movements involved in shooting an arrow) 2. Climbing --> Preparing and Training "As Risk - Free as Possible" (Risk Management) 3. Mission Statement: "Patagonia strived to build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environment crisis"