Case Study – Patagonia
Read the case study Patagonia and respond to these questions:
a) Patagonia’s prices are about 20% higher than its competitors (e.g., North Face). Why are their customers willing to pay this premium for their products?
b) Why do other firms in the industry choose to follow Patagonia’s environmental practices?
c) What are some potential problems related to the Productive Lifecycle Initiative (PLI)? How can PLI make sense from a business (profit) perspective?
d) Is PLI easily imitable by Patagonia’s competitors? Why or why not?
Requirements: Label the questions (a, b, c, d) and respond directly – and only – to the questions.