Tuesday, May 1, 2012

How Patagonia Satisfies Customer Wants



When examining Patagonia's five disciplines for creating what customers want, one must first ask how exactly Patagonia identifies customer needs? The answer to this question comes from targeted market research and development. Patagonia spends time analyzing the market for their products and listening to customer reviews. They strive to design products aligned with their targeted customer's (outdoor enthusiasts) needs and values.

In order to fill the needs of their customers, Patagonia uses more of an incremental innovation approach to improve upon their existing products and processes. These incremental innovations are used as a source of competitive advantage for the company and would include new technical systems for their apparel and gear. Patagonia also uses innovative teams to create value and satisfy wants for their customers. The structure of these innovative teams is functional, meaning that each department focuses on an assigned area or task and then ultimately, all departments work together to address major concerns.

Within the organization, it is apparent that CEO Casey Sheahan is an innovative champion who takes responsibility for Patagonia as a company and the products it makes. The founder of Patagonia, Yvon Chouinard, would be considered the father figure of innovative champions. It was through his efforts that Patagonia was able to operate and survive. The idea of collaborating with innovative partners is a useful tool that Patagonia uses to add value in the marketplace. Patagonia has partnered with many environmental groups, suppliers, and even other clothing companies to satisfy customer wants and help preserve the environment.



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