The Battle to be Top Dog PetSmart vs. Petco Essay

The Battle to be Top Dog PetSmart vs. Petco - Essay Example This created the popularity of the company and improved the customers trust in the benefit of the company. Handling competition is not an easy job and it needs committed resources of manual labor, system, and financial plan. Any trail off from a company would lead in decline of market share and profit. This made the Petsmart advance, widens its market thus included services such as, adoption, training, veterinary, grooming, day care, and more so pet hotel. . The article illustrates how Petsmart has vastly managed to strike equilibrium between being wholly alert on availability and pricing, which is highly vital in competing with strong merchandisers and looking into value added- services. The previous year the company groomed 7.5 million dogs, a 16% increase over the year before. It provided 378,000 training classes, another 16% increase. Overall, services are to generate $450 million sales this year, about 10% of the companys $4.5 billion total, but representing 26% annual growth since the initiation of the strategy in 2000. The structure of the company itself is a competitive strategy since it pleases the sight of the customer and the pet. For example, the inner dà ©cor was in blue color, decorated with brick and sliding to be attractive to the public. Petco uses a highly different approach compared to Petsmart. It Diversifies its market products Moreso for other animals not necessarily pets products. It recently introduced a â€Å"reptile rendezvous†. This Includes, the demonstration of products, and the photo contest. This strategy has improved its income since the effectiveness of the program pleases customers. Although petco has not embraced the services aggressively like Petsmart, it features grooming services and more so providing doggie day care at various locations. These Strategies have made it succeed thus withstanding the stiff competition from the Petsmart. Other sources say

Trouble Brews at Starbucks Case Study Example | Topics and Well Written Essays - 1250 words

Trouble Brews at Starbucks - Case Study Example However, in 2007, trouble began when the company performance began to decline. It reported a reduction in the number of customer visits in the United States leading to a 50 percent drop in share price (Pride, Hughes and Kapoor 45). In two quarters growth remained flat and declined in the fourth quarter. This led to rehiring of Howard Schultz, who was viewed as a visionary leader. This was done on the purpose of restoring Starbuck’s premier brand. To this end, this paper analyzes this company to understand how it can regain its earlier status. In the industry, the level of competition is very high. Some of the major competitors for this company include the Tully’s coffee, Caribou Coffee and Gloria Jean’s. Although, there are a high number of competitors, the industry is dominated by the mentioned competitors. In Starbucks case, there are new entries and other firms in the market. The company’s new competitor is McDonalds’ â€Å"McCafe†. Competitors are likely to enter this industry because the startup cost is low. McDonald has the ability to create its distinct product that will help it tap in the coffee market. A store that can successfully enter the market has the potential to make profits. Fortunately, the company’s location limits new entrants. Also, the existence of differentiated brands enables the company to increase the switching costs for customers. For Starbuck, the sheer scale has helped reduce the buyers bargaining power (Romney n.pag.). There is no single group that influences the purchase of the company’s products in large quantities. Also, there are different options as a result of a high number of competitors. In addition, the products that can substitute coffee are in of a variety. This threat is high for the company. The purchase of bottled coffee is seen as inexpensive rather than opting for the company’s mug coffee. There are also products that can be used instead of coffee. They