Indian Institute of Management, Kozhikode

PATAGONIA
International Business
EPGP-11 (2018-2020)

Participant Name Roll No.

Abhinav Sharma EPGP 11 - 132
Aditya Veer Singh Rana EPGP 11 - 133
Akansha Mishra EPGP 11 - 134
Arul Raj Kitnan EPGP 11 - 143
Shibu Varghese EPGP 11 - 219
Bhuvan Roy Gupta EPGP 11 - 151
Tushar Shetty EPGP 11 - 158

1. What’s the key problem that emerges in this case? What’s the challenge here?
a) Key problem
 How can corporates encourage customers buy less to promote environment
sustainability?
 How to reduce the consumer impact on environment?

b) Challenges.
 While continuing to challenge consumerism through sustainability strategies,
how can corporates remain profitable?
 Lower level of commitment from companies towards sustainability and
environment protection.

2. Why did Patagonia switch to organic cotton, despite the costs?

a) Chouinard wanted the organization to create a positive impact on society, environment

and economy.
b) From a study in 1991 by Patagonia, on the environmental impact of the operations in
producing clothing fibers, it found that the conventional 100% cotton uses chemicals
to defend against pests.
c) These chemicals polluted air, water and soil resulting in Cancer and defects in human
and wildlife population. This environmental impact could be reduced by replacing
with organic cotton (cotton accounted for 20% of the materials sourced by Patagonia).
d) Switching to organic also led to reduction in cotton products from 91 to 66.

3.What was so innovative about the Common Threads and Worn Wear initiatives?

a. Common Threads initiatives came up with reuse and recycle strategies for clothing.
Customers were provided with multiple options to ensure the initiative result in the
right actions and eventually meet the desired purpose.

 Do it yourself repair guide was published to assist customers

 Largest garment repair facility was opened for customers who found it
difficult and time consuming
 Second-hand market was created for Patagonia garments that were not worn
anymore or that were no longer fit.
 Customers not able to sell could post them on Yerdle and earn Yerdle dollars
that could be used to purchase other new or used garments
 For garments that were beyond repair, Patagonia paid the shipping costs
which Patagonia broke down and repurposed.

b. Through “Worn Wear” initiative, Patagonia encouraged their customers to capture

stories on how customers fixed their garments and avoided unnecessary purchases.
4.How effective was the "Don't Buy This Jacket" campaign with regard to
sustainability? Would you term this a sustainability innovation?

a. “Don’t Buy this Jacket” campaign was not effective with regard to sustainability if
we assess the impact of the campaign purely based on sales of Patagonia on Black
Friday 2011. Looking at the overall sales of clothes on Black Friday and the sales
post Black Friday compared to Previous years would be provide more conclusive
impact of the campaign
b. The ad calls for customers to buy only what is needed and take the common
threads initiative pledge and join Patagonia in the fifth “R”. So, looking at the no,
of pledges taken would decide the effectiveness.
c. It is a sustainability innovation as this has the potential to create awareness among
consumers and Black Friday is a good occasion to air the Ad as it would reach
large number of consumers.

5.What are the key insights you gain from this case with regard to responsible and
ethical leadership?
a. Leaders need to build business that is great for environment in addition to being
great for employees and shareholders
b. Leverage skills and expertise of employees to create positive environment impact –
provide them with the required resources
c. Sustainability is not a zero-sum game. It needs to ensure all aspects of organization
has a positive impact on environment, society and economy.
d. Share the positive results of sustainability practices with Peers and competitors to
widen the impact
e. Sustainability program is not static rather should be a constantly evolving one.
f. Marketing your sustainability initiatives in the right way can even help
organizations to increase profits by presenting a eco-friendly image to customers.