Professional Documents
Culture Documents
Agenda
1. 2. 3. 4. 5. 6. 7. Introduction Strategy Business Model Tactics Requirements for Success Key Takeaways Discussion
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Lose customers if environmental quality providence goes beyond required law High dependency on consumer who bear the burden of extra cost through environmental investments
Source: Reinhardt (1998)
PROFIT
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Patagonia
Private held company Initial purpose: Financing of founders outdoor hobbies Produces sportswear, technical outerwear / knits, hard goods
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Environmental quality providence goes beyond required law They have extra costs through environmental activities
PROFIT
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Strategy
[] choice of business model through which the firm will compete in the market place.
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Strategy
Vision
Environment conservation and restoration
Mission
Strive to build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. -
Believes
Quality Integrity Environmentalism Not bound by convention Zen Philosophy
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Business Model
[...] logic of the firm, the way it operates and how it creates value for its stakeholders.
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Business Model
Process Innovation Product & Service Innovation Business Model Innovation
Create Value
Operational Excellence Customer Intimacy Product Leadership Environmental Stewardship
Perceive Value
Customers Excellent Quality & Services Good Feeling Environment
Capture Value
Profits Growth Market Share
Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Tactics
[...] residual choices open to a firm by virtue of the business model it chooses to employ.
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Key Tactics
Product Lifecycle Initiative
Reduce
Repair
Reuse
Recycle
The Product Lifecycle Initiative represents a holistic commitment to lengthen the lifecycle of each product and reduce landfill waste.
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Reduce
Key Tactics
Product Lifecycle Initiative
Reduce Repair Reuse Recycle
Description
High Quality Low Footprint Organic & Recycled Materials
Assessment
Big increase in production costs Limited product variety Only small price increase
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Repair
Key Tactics
Product Lifecycle Initiative
Reduce Repair Reuse Recycle
Description
Free repairing service Considers repair for other brands
Assessment
Increases trust in quality High costs Miss out potential new sales Not enough capacity
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Reuse
Key Tactics
Product Lifecycle Initiative
Reduce Repair Reuse Recycle
Description
Second market for used products Considers opening for other brands
Assessment
Additional revenue stream New less affluent customer segments Cannibalization of sales
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Recycle
Key Tactics
Product Lifecycle Initiative
Reduce Repair Reuse Recycle
Description
Take broken products back for free Considers providing servicefor other brands
Assessment
Cheap resources for production High operating costs Capacity constraints
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Business Model
Process Innovation Product & Service Innovation Business Model Innovation
Create Value
Operational Excellence
Customer Intimacy
Product Leadership
Environmental Stewardship
Perceive Value
Customers Excellent Quality & Services Good Feeling Environment
p
?
p
?
Capture Value
Profits
Growth
Market Share
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
2
1
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
1. Willingness to pay
Perceive Value
Customers Excellent Quality & Services Good Feeling
Environment
Capture Value
Profitability Growth Market Share
Patagonia
Bundling of public and private goods (Environment & Quality) Environmental prestige Altruistic reasons (Donation) Differentiation strategy resonates with customer value
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
2. Credibility
Reporting Labeling
Patagonia
Footprint chronicles Retail store lounge - to inform about patagonia and projects
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
2
1
p p
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Key Takeaways
Dont just rely on basic economic logic! Environmental differentiation strategy can work! Environmental differentiation strategy must provide value to the customer and the firm must be able to capture the value! Company must be credible for their environmental efforts! Environmentalism must be deeply integrated in the business model to be difficult to imitate! Innovation must be managed with respect to capacity & resources
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Discussion
Should Patagonia go public?
Investors Expectation Shareholder Profits = main objective ROI decision making Short term focus
-
Profitability
Growth
Patagonia
profits = only means to an end Many environmental activities only capture value as an integral part of business model Long term focus
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Introduction
Strategy
Business Model
Tactics
Key Takeaways
Discussion
Discussion
Should Patagonia go public?
Investors Expectation Shareholder Focus on growth
-
Profitability
Growth
Patagonia
Capacity and resource constraints cant handle fast growth without compromising believes
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