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Patagonia SWOT Analysis | Marketing Analysis of Patagonia

 

Patagonia is one of the most notable eco-friendly outdoor clothing manufacturer and a reputed brand. It is also famous due to its eco-friendly operations and integrity. It is also a big player in the outerwear sector due to its upscale high quality and strong consumer base. So, it is really important to discuss its Marketing strengths, weaknesses, opportunities, and threats. We are going to make the Patagonia SWOT analysis.

 

Company Name:  Patagonia

Founded by:  Yvon Chouinard

CEO:  Rose Marcario (Feb 7, 2014–)

Year established:  1973, Ventura, California, United States

Headquarter: Ventura, California, United States

Type: Private

Products: Outdoor Clothing and Gear

Number of Employees (2020):  1000

Annual Revenue (2019): US$ 800 million (estimated)

Products and Services: Outdoor Apparel | Backpacks | Camping Food | Outdoor Shoes | Sleeping Bags | Bicycles and parts | Sporting Goods | Outdoor Gear | Sporting Equipment | Accessories | Second Hand Clothes

 

Patagonia SWOT Analysis | Marketing Analysis of Patagonia

Strengths of Patagonia:

 

  • Reason-Driven Policies:

As social awareness is increasing day by day among customers, Patagonia uses the 5Ps (Purpose, Product, Price, Place, Promotion) strategy in its working. This kind of purpose-driven policy is the biggest strength of Patagonia.

  • Confidential Ownership:

The ownership of Patagonia is really private and provides many benefits against competitors. They face no difficulty in changing policies and there’s no need to go through many permissions. They can change their strategies and policies easily without the tension of any investor or dealer.

  • Outstanding Thinking:

The main slogan of Patagonia is ‘’buy less, buy quality’’ which is really helpful for them to attract customers. This encourages the purchase of old products instead of new ones. Their revenue was increased by 30 percent after this policy.

  • Vast HR Policies:

Patagonia always cares for their worker, that’s why their worker’s efficiency and productivity is enhanced. In fact, in this global pandemic, they closed their stores but never stop to pay salaries to their workers.

  • Excellent Image:

From its start, Patagonia’s main strength is its obsession with sustainable utilization. This thing helped them a lot to compete with their competitors effectively. This kind of good image is the biggest strength of Patagonia.

  • Nature-Friendly Operations:

As the eco-conscious customers are increasing, Patagonia perfectly uses this policy in favor of their company and spends 1 percent of its revenue for this purpose. That’s why they are also known as an eco-friendly retailer brand in the world.

  • Valuable Marketing:

Patagonia’s campaign ‘’Global Climate Strike’’ is the biggest power for its marketing strategy. In this way, they attract eco-conscious people which is the biggest strength of Patagonia.

  • Society-Centric:

Effective marketing and a community-centric approach can make your company famous and popular. Patagonia donated 10 million dollars from Trump’s tariff cuts to environmentalists.

  • Trusty Customers:

With its effective marketing and eco-friendly efforts, Patagonia has earned people’s trust and respect. That’s why their consumer base is very strong and loyal.

 

Patagonia SWOT Analysis | Marketing Analysis of Patagonia

Weaknesses of Patagonia:

 

  • Pathetic Online Presence:

As the value of online shopping is increased in this global pandemic, every company focuses on and adopts online resources to sell their goods. But Patagonia is still struggling in this sector due to its weak online presence. Thus, it is a major weakness of Patagonia.

  • Dependence on Suppliers:

As all the clothing brands rely on suppliers, Patagonia also relies on suppliers. This is also a main weakness of Patagonia. They face supply issues and quality issues from the suppliers because they heavily depend on suppliers.

  • Weak Market Reach:

Patagonia’s market presence is only in the US with 37 stores and 2 stores in Canada. It means that in other regions their competitors targeting their loyal consumers due to Patagonia’s weak market presence around the world.

  • Involvement in Politics:

Involvement in politics is also the biggest weakness of Patagonia. As the company’s CEO is a critic of President Trump’s policies and administration. This thing has damage to the company’s reputation.

  • Reliance on the US:

The major source of revenue for Patagonia is the US market. They depend heavily on the US market, it certainly exposes the company’s weaknesses and vulnerabilities.

 

Patagonia SWOT Analysis | Marketing Analysis of Patagonia

Opportunities of Patagonia:

 

  • Fortify Market Existence:

Although Patagonia has 37 functional stores across the US, the company should focus on enhancing and expanding its reach in other regions of the world like Latin America, Canada, and many more. In this way, they can easily boost their revenue system and fan-following.

  • Spread out Internationally:

The demand for outerwear is increasing in the world. But Patagonia’s reach is only in the US and Canada. By expanding its brand to the other regions of the world, they can earn more revenue and profit.

  • Take Advantage of e-Commerce:

According to research, most people prefer to shop outdoor apparel through online channels. Patagonia has the ability to strengthen its e-commerce channels to expand its reach and profit.

  • Widen Product Line:

Although Patagonia provides outerwear and outdoor-related products, they can extend their product line with everyday apparel, second-hand clothes, and sportswear.

 

Patagonia SWOT Analysis | Marketing Analysis of Patagonia

Threats of Patagonia:

 

  • Environmental Change:

As most of the products of Patagonia are made from natural materials like cotton, wool, and etc, this thing makes it weak to climate change. The availability of these materials is in danger due to an increase in flooding and droughts.

  • Recession:

As the world is facing a severe recession, that’s why people shrink their expenses on outdoor apparel and essentials. This thing is the biggest threat to Patagonia.

  • Declining Trade Sector:

The world is experiencing a decline in the retail sector for the last few years. After this global pandemic, it is really tough to survive and compete with competitors. This kind of recession can threaten Patagonia’s sustainability and revenue game. However, they have started Online sales also to meet the demand and market share.

  • Worldwide Pandemic:

Due to COVID-19, Patagonia has to shut down its stores and working. As they don’t have a strong online presence, they face a huge loss in this time period. They recently started online selling now.

  • Hard Competition:

In the presence of some heavyweights such as North Face, Osprey, L.L. Bean, and many more, it is really hard for Patagonia to compete and survive. These competitors are the biggest threat to Patagonia in the outerwear retail sector.

 

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