Critter Campus Kennel Business Plan Analysis

Introduction to the Critter Campus Concept

Two sisters, Toni and Jill, are giving serious consideration to going into business together to operate a kennel that would provide high-quality services at reasonable cost, catering to all types of animals — not just dogs and cats. They have already chosen a clever name for their venture: "Critter Campus." The name emphasizes the wide variety of animals they would be willing to board as well as how they intend to distinguish themselves from the competition. This analysis evaluates the strengths and weaknesses of their planning so far across several key strategic dimensions.

Competitive Strategy: Cost Leadership and Differentiation

It does not seem likely that the two women can successfully pursue a cost leadership strategy. They have not yet established whether they can build a large enough facility to achieve the economies of scale that strategy requires. According to their figures, it would cost $2 million to build a 20,000 sq. ft. facility, not including the cost of land. They have identified a source to help with the 30% they must contribute themselves, and a possible source for the remaining 70%, but none of this is firm, and it is not yet clear how much their interested party is willing to contribute.

In addition, their discussions have not accounted for start-up costs. If both sisters keep their current jobs, the business will not need to support them immediately, but this means they will need to hire more employees from the outset. It seems likely that a true cost leadership strategy will remain the domain of large chains, which can use volume to hold costs down in ways a new independent kennel cannot.

The women have, however, carefully considered differentiation. They began by grouping kennels in the Des Moines area into two categories — lower quality and higher quality — and have decided to compete with the best kennels in the area. They then analyzed the strengths and weaknesses of each competing kennel. Their background positions them to compete strongly in two areas in particular: animal training and the ability to accommodate a wide variety of animals.

Market Research and Competitive Landscape

The women have conducted considerable market research. They have detailed knowledge of the strengths and weaknesses of their major competitors and have identified a significant gap in the greater Des Moines pet care market: quality pet training. This is an area where both women have substantial expertise. Their research also included a careful examination of Des Moines demographics, and they have thought strategically about which location would position them best as the city grows.

One thing the women have not fully considered, however, is which segment of the pet-owning population is most likely to board their pets. While they recognize a general trend toward greater kennel use, defining that group more precisely could help them target their advertising more effectively. A significant piece of market intelligence — identifying who boards pets, not just who owns them — remains missing from their analysis.

Distinctive Competitive Advantages

The women have a clear and presumed distinctive competitive advantage in their ability to provide high-quality supplemental services, particularly animal training. There is a demonstrated need in Des Moines for quality behavioral training for dogs, and this is an area neither woman needs to learn from scratch. Another competitive advantage they have not yet discussed in depth is that only one of the competing kennels in the area currently offers day care services. Offering day care alongside boarding and training could set Critter Campus apart and create additional revenue streams during slower periods.

The women also exhibit a strong orientation toward discovery-driven planning. They did not begin with a rigid vision of exactly how the kennel should operate or which services it should offer. Instead, they have taken each new piece of research and considered its implications for the business and potential ways to exploit it. Their approach to location is a good example: although both women own homes, they did not attempt to cut costs by using land they already own. Instead, they started with a careful analysis of where the optimal location would be, and have been willing to refocus their ideas as new information emerged.

Conclusion and Recommendations

Based on their research so far, the women should continue to carefully explore the feasibility of opening a kennel. The work they have done suggests they will continue to approach the process diligently, but significant planning remains before they are ready to launch. In particular, they need to examine costs they have not yet accounted for, including staffing, insurance, utilities, early advertising, equipment, supplies, and other operating expenses.

They need to develop a detailed business plan that covers the first year comprehensively and provides reasonable projections for subsequent years. They also need to consider how long they can realistically support themselves through their current jobs while taking on the substantial undertaking of starting a new business with complex building requirements.

It may be worthwhile to consult local employment agencies to determine whether there is a pool of candidates who might be a good fit for the business. For example, if a local technical high school offers animal grooming programs, graduates from those programs might also be interested in other roles within the kennel — a potentially valuable and cost-effective staffing source. Because both women will not be able to work at the kennel full-time at the outset, staffing requires particularly careful planning.

The positive aspects of their plan are their detailed knowledge of the broader industry, which should shorten their learning curve considerably, and their combined background in business and retail. The negative aspects center on insufficient attention to the full scope of finances required to launch the business. They have been realistic in their approach so far, and there is every reason to expect they will continue in that pattern — but the financial and risk planning work ahead of them is substantial and should not be underestimated.