SWOT ANALYSIS:
Hello everyone.
Today, I will present a SWOT analysis of PetSmart. SWOT is an acronym for strengths,
weaknesses, opportunities, and threats.
PetSmart's strengths include a significant amount of experience in pet care, which allows
them to provide superior service compared to their competitors. They also have
competent employees who decrease the amount of time needed for training and
increase customer satisfaction.
In terms of weaknesses, the company culture still has turf fights, which leads to
information being stored in silos and missed market opportunities.
PetSmart's opportunities include expanding its operations, developing a widely
recognized brand, and going global to capitalize on prospects in the international market.
However, the company faces threats such as possible increases in utility rates, a drop
in demand during economic downturns, and stiff competition in the digital marketplace.
MARKET ENTRY STRATEGY:
The report analyzes possible market entry strategies for PetSmart in Colombia and
identifies three modes of entry: partnering and strategic alliance, acquisition, and
greenfield venture. Each mode has its own advantages and disadvantages.
After analyzing the options, the report recommends that PetSmart enter Colombia
through acquisition, specifically by acquiring Puppis, a chain store for pet products and
services in Colombia with 22 stores.
This strategy gives PetSmart quick and established access to the Colombian pet store
market, which is currently in consolidation. If an acquisition of Puppis is not possible, the
report recommends a greenfield venture. The report also highlights the lack of
competitive issues in the market and the potential for PetSmart to take advantage of
Puppis' slow expansion and the devaluation of the Colombian Peso to acquire Puppis
for a good price.
PRODUCT STRATEGIES AND TACTICS:
PetSmart is a one-stop-shop offering convenience to pet owners through pet products
and in-store services, such as adoption, boarding, grooming, and training.
The store uses customer-focused data-driven pricing to enhance the customer
experience and track the effectiveness of promotions. Over 10,000 products, including
proprietary brands, are available in-store. Product development strategies focus on
enhancing current products or developing new items that fill a need in the market.
Petsmart should keep prices stable, generate interest in the product, expand distribution
channels, and reach a larger audience through advertising as it expands its market
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abroad. By making the store more convenient, the target market will consume more and
be loyal to the store.
Thank you for listening. Now Rona will continue with Place/Distribution strategies and
tactics.
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