2. How does Petco compete with PetSmart and other pet food stores and how does their competitive strategy relate to their own internal analysis? Give an example from the case.

Unlike PetsMart, Petco concentrates on having many more retail locations, combining services in the larger locations yet not to the extent of its primary competitor. Petco also concentrates more on providing food and suppliers for the more exotic pets that children and teenagers have. The primary focus of Petco is therefore more on pets that include reptiles and animals held in terrariums including turtles and other invertebrates. This has significantly changed the marketing strategies of Petco, online and offline, as the company targets a younger demographic overall. The inclusion of services has been a contributor to revenue, yet is not nearly as aggressively pursued as competitor PetsMart continues today doing (Dalton, 2005).

The concept of being more ubiquitous throughout retail...

The thoroughness of the company's commitment to a multichannel strategy is also seen in their approach to managing certifications and audited security levels on their websites as well (Amato-McCoy, 2007). Petco's internal analysis is more focused on how to transform their multichannel retailing strategy into being a trusted advisor to their customers, especially those who own unique and exotic pets. In this sense, both companies are competing daily to win the trust of pet owners throughout shared markets.