Differentiation - Patagonia's Business Level Strategy

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.