1. Situational Analysis
Purpose of Organization and Product
Patagonia is an outdoor clothing company worldwide leader of environmentally responsible business that offers products that are simple, functional and multifunctional. Patagonia’s product line is composed of four main product categories: Sportswear, Technical Outerwear, Technical Knits and Hard Goods.
It is an industry leader in technological innovation, that invest in development and tests raw materials to cause the least amount of harm to the environment as possible. Patagonia’s mission statement is: “Build the best product, cause no unnecessary harm and use business to inspire and implement solutions ...view middle of the document...
That's why Patagonia has a very small wholesale channel compared to its competition. In the United States has about 900-1000 distributors, and some chain stores wisely distributed across the country. In total, Patagonia has 26 retail stores in the United States and 52 worldwide.
2. Problem Definition
Currently the company has an average annual growth of 6%. For the next 5 years are expecting a growth of 10% annually. The CEO and the executives of the company have a challenge of implementing a new radical initiative called “The Product Lifecycle”. This initiative consist basically in convince its customers to buy less and consume better by repairing and recycling old garments, and creating a new market of used products for its consumers. The dilemma of the CEO and executives is not being able to have the balance between commitment to sustainability and the achievement of the expected growth for the company in the coming years with the new initiative “The Product Life Cycle”.
It is certainly a decision that requires a careful assessment and analysis of the factors that are involved in order to reach the most convenient solution for the company. There are many issues that must be analyzed before any decision, including:
* The costs, resources and time that this project requires
* The outreach of the project
* Economic/non-economic benefits that this project may generate
* The values, mission and purpose of the company
* The vision of its founder
* The company’s image
* Target Market
3. Alternative Solutions
1. Commit to the expected 10% annual growth without...