Barbosa_MGT350_Mod_5_Critical_Thinking

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To: Dr. Castle From: Wesley Barbosa Date: July 29, 2010 RE: Mod 5 Critical Thinking, PetSmart vs. Petco PetSmart is the younger or the two companies but they have secured a competitive advantage over Petco. PetSmart stores are larger than Petco’s and they offer their products at about 10% lower prices. Over the years they have had competition from the big box stores such as Wal-Mart and have adjusted appropriately, stocking less items and reducing the size of their stores. They have also gotten into pet care; grooming, training, veterinary, and hotel concepts. Petco, in my opinion, will not last and have a competitive disadvantage over PetSmart. They attempt to compete by offering a larger selection of pet products in a smaller store. They do not have the services that PetSmart provides, charge more money, and try to gain more customers
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Unformatted text preview: through competitions and advertisements which, in my opinion, are targeting the wrong population of people. I think that PetSmart’s strategy is to offer low prices and great service to their customers and have done a great job meeting their expectations. PetSmart continues to adapt to the current market while keeping their prices low and their services at a high standards. Petco, on the other hand, is also doing well as far as their strategy goes. I do not think Petco understands the market or their competition. They say they want to make money but it is or the private owner as they are privately owned so they have no stock holders to be accountable to. Both companies have stakeholders as they are the two largest pet supply companies in the US but PetSmart clearly has the advantage based on the case study....
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