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The Battle to be Top Dog – PetSmart vs. Petco

Strategic Management Planning for Domestic and Global Competition - Source: pexels.com

Strategic Management: Planning for Domestic and Global Competition

CASE ABSTRACT

PetSmart and Petco are two retail chains that dominate the $41 billion animal care industry.  PetSmart is the larger of the two with 908 stores versus 850 for Petco. 

PetSmart also has $4.5 billion in revenues in comparison to $2.2 billion for Petco.  While PetSmart’s prices are 11 percent lower on an average than Petco’s, it stresses the services offered in its stores to boost revenues and profitability. 

Petco’s strategy is to have smaller stores with more space for merchandise. Both companies compete in the industry using a different strategic approach.

KEY POINTS

RELATED CHAPTERS

Chapter 1: Strategic Management, Chapter 6: Internal Analysis, Chapter 7: Long-term Objectives and Strategies, Chapter 8: Business Strategy, Chapter 10: Implementation, and Chapter 12: Leadership and Culture

Answer the Following Each Question (Short and Simple Answers Are Okay)

  1. What is PetSmart’s strategy?
  2. How does Petco compete with PetSmart and other pet food stores?
  3. How did PetSmart react to the tainted pet food recall?
  4. Why is Petco slow to embrace the services strategy?

Textbook Information:

Text Title: Strategic Management: Planning for Domestic and Global Competition
Publisher: McGraw-Hill Irwin
Author(s): Pearce II, J.A., & Robinson, R.B.
Edition: 14th (2014)
ISBN: 978-0-07-786251-0

The Battle to be Top Dog – PetSmart vs. Petco

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