Patagonia serves its customers internationally by offering online international orders. In order to place on order online, all you have to do is visit Patagonia's country of origin page and select your country and language from the options provided. There is also a store locator page online that allows customers to see where various Patagonia stores and dealers are located. Besides the United States, Patagonia serves international customers from countries including Canada, Japan, Europe, Italy, Chile, and Argentina.
When making the decision to expand internationally, it is apparent that Patagonia would stick to their strategic focus of differentiation. Out of the four different types of international strategies, Patagonia utilizes the multidomestic strategy when dealing with business on a global scale. Patagonia would employ this strategy more so than the others because there is a low pressure to lower costs and a high pressure for local adaptation with their international products.
Because Patagonia adopts a multidomestic strategy, they must alter and adapt their products to local needs and tastes. This might include insulating their jackets with a different material to adjust to the climates of different regions, or even adapting apparel colors to the various local tastes. Since Patagonia would still target the same clientele market, there wouldn't need to be a high emphasis on lowering the cost of their products.
Patagonia tends to operate more on the side of a single business organization than a diversified business when it comes to their corporate-level strategy. Rather than managing operations in multiple businesses, Patagonia prefers to stick to the outdoor apparel/adventure gear industry. The diversification Patagonia displays is limited to their product line and numerous environmental initiatives the company is involved in.
An example of Patagonia's diversification can be seen with their Textile Exchange program, which brings together product brands, retailers, farmers, and key stakeholders to learn about the social and environmental benefits of environmentally conscious textiles. Patagonia was a founding member of this nonprofit group in 2002, which aims at driving global sales of organic cotton apparel and home textile products. Patagonia has also partnered up with other outdoor clothing companies such as REI, The North Face, and Kelty to create The Conservation Alliance, a group concerned with involvement in environmental affairs.
Although Patagonia leans more on the side of a single business organization, one can still see aspects of a diversified business on their website. Not only can you shop for clothes and gear online, but you can also listen to specific Patagonia music and watch live videos of world travels through an online video gallery. There is also an online blog where employees, friends, and customers can share their discoveries and insights with one another.
When it comes to implementing
a business-level strategy, it is apparent that Patagonia operates with a
differentiation strategy in mind. Patagonia is able to create and sustain a
competitive advantage by offering customers unique, quality products. Patagonia
uses their favorable brand image and innovative product designs to attract
customers to their market and keep them coming back for more. The cost of an
apparel or outdoor item is not as important to Patagonia as good quality is. One
can see this by simply looking at the prices of Patagonia products and the
materials used to make these products.
Patagonia also uses
cutting-edge technology in developing their products to help sustain a
differentiation strategy in the marketplace. Many of their jackets and pants
feature wind and water resistant technologies to give consumers the best
outdoor experience possible. Patagonia's technical systems are always dialed
into the conditions of the environment, giving Patagonia a uniqueness that
makes it hard for competitors to imitate.
Some could argue that
Patagonia operates with a focus strategy, since they target the particular
market segment of outdoor enthusiasts only. This is partially true, but I would
consider Patagonia's business-level strategy to be more of a differentiation
strategy than a focus strategy because a wide variety of people do buy Patagonia's
products. I myself would not be considered an outdoor enthusiast, yet I still
own Patagonia apparel. There are aspects of both strategies that come into play
when giving Patagonia a competitive advantage.
