Patagonia's Internal Environment

Looking at the operations of Patagonia from an internal perspective, it can be said that the firm operates using resources and organizational capabilities to their fullest potential. Patagonia creates value as a company through their knowledgeable use of primary and secondary activities. Their effective plant operations in particular add value to their business. As a member of the bluesign Standard, Patagonia maintains a management system conscious of environmental performance in five key areas of the production process - resource productivity, consumer safety, water emissions, air emissions, and occupational health and safety.

Three tangible resources that Patagonia has which allow it to compete in the outdoor apparel industry would include their unique and effective products, their favorable manufacturing locations, and their innovative production processes. Three intangible resources would include their reputation/brand name, their environmental activism, and their internal organizational culture. All of these resources, both tangible and intangible, are sources of competitive advantage for Patagonia.

As a firm, Patagonia also demonstrates organizational capabilities which allow it to transform inputs into outputs. Patagonia exemplifies excellent organizational capabilities in the areas of product development and manufacturing, customer service, and innovation. When it comes to their products, Patagonia strives for quality and leadership in the area of environmentalism.