Pets Mart Website

Strategic Planning and Environmental Factors Impacting the Pet Industry

The pet products and supplies industry that PetsMart competes in and is partially credited with creating is facing a series of environmental factors that are creating entirely new opportunities, making inherent weaknesses more visible to all industry participants, while also making more threats come to light than before. Beginning with the environmental factors that are serving as the foundation for growth in the industry is the supply chain expansion, greater creativity and discipline in new product development, and greater reliance on the Internet as a means for customers to order products. Environmental factors that could be considered weaknesses include the relatively tight geographic concentration of retailers and sup-pliers, and the slow adoption of supplier auditing processes to ensure the products produced for pets meet with the highest levels of quality possible. Those factors that are considered threats include a tightening of the American economy and intensive competition. The growing use of regulations to ensure the highest levels of product quality in the supply chains is also an environmental factor the company must also contend with.

In terms of strategic planning, PetsMart must concentrate on capitalizing on the factors that are leading customers to order online more than ever, as this will increase top-line revenue growth while decreasing cost of sales. PetsMart also must focus on the changing role of pets in families and how they are now seen as more than just animals; they are increasingly seen as members of the family and must as a result get their own hotel rooms and vacations when human members of their families also go on vacation. The growth of pet hotels exemplifies this trend. Capitalizing on this is highly profitable opportunity for the company. In conjunction with these opport7unities, PetsMart must also focus on how to streamline and make their supply chains more in compliance to regulatory and legal requirements. Finally PetsMart must bring all these strategies together into a single, well-executed strategic plan in order to retain and grow their customers' trust. Of all factors, the supply chain audits and assurance of high quality consumable products is essential for the chain to continually be seen as a trusted advisor by pet owners.