SWOT Analysis-Pet Smart PDF

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MGT450 09/10/2019

SWOT Analysis: PetSmart Strengths: 

PetSmart owns Nearly 1,200 stores and about 165 locations throughout the US and Canada.

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PetSmart Charities is also known for its Rescue Waggin' program

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PetSmart is renowned brand of pet products (well-known brand) offering unique services for pets (grooming and dog training, PetSmart PetsHotel dog and cat boarding facilities and Doggie Day Care) along with well-built reputation in community.

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Strong Corporate Ethics- HR policies practiced by company are well defined and specially mentioned on the website of company especially for HR and company also demonstrates sturdy corporate ethics.

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PetSmart is known for social welfare of animals especially for pets like cats and dogs. (socially responsible (spay & neuter, adoptions)

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PetSmart also contain Banfield Pet Hospital veterinary offices

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This company practice consistent efforts for its sustainability and for diverse workplace.

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Financially PetSmart is strong organization that acquired 16% profit within last quarter and gained DTE of 50.2. (financials for company are easily accessible.)

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PetSmart also have 100 million of untapped credit.

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Another positive aspect of company is that the major shares of company are owned by employees of the company.

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Strong community presence Individual stores have good community ties, with in-store adoption centers and sponsorship of local pet events, such as the Pet Walk

Weakness: 

Business is restricted only to US and no global presence

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Prices are somewhat on higher side

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Although PetSmart is one successful company in its genre of services however, some of the employees of company lack sense of motivation.

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Staff members of company also possess poor communication.

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PetSmart also offers less cost benefits for its employees on hourly basis.

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Many products by PetSmart are manufactured from other locations like China which can affect the quality of the products.

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Company may be too big for its own good, limiting its agility to respond to changing trends.

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Despite the company’s claims of wanting to penetrate services more heavily, PetsHotel seems like an afterthought.

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Retail store checkout lines are notoriously long and slow, and self-checkout is not offered

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Pet Perks rewards card does not offer any special benefits.

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PetSmart has many store locations but with few distribution centers could be impacted by weather

Opportunities: 

Enhancing its presence online by offering more services through ecommerce

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PetSmart possess wide range of opportunities with its more than 50,000 associates and strong community existence. - expansion of charities?

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With its wide range of services for pets, PetSmart has good chance for foreign expansion especially in Europe and Mexico. (Global expansion across countries)

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With collaboration of famous designer more lines of products can be introduced.

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By introducing homeopathic and holistic products the market of company can be enhanced. (Expansion of private label brands, especially organic and natural foods)

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Providing companion dogs for people by working with other training groups in community, company can generate good profits. (extend community presence)

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PetSmart can also promote retailers, advocate and local pets.

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Offering grants for more innovative products can also enhance the business of PetSmart.

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Use technology to make stores more customer friendly, especially self-checkout

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PetSmart can improve their Pet Perks rewards to make it a better program

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PetsHotel could be wildly successful if marketed properly; perhaps franchise some locations?

Threats: 

Allegations by PETA has had negative effect on PetSmart image at times

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Expansion of competitor activity may decrease PetSmart market share

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The local small business owners and pet retailers can offer competition to PetSmart.

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Most renowned competitor of company is PetCo.

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Due to low scale and poorly scheduled benefits for employees' company can lose employees rapidly.

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Economic declines can affect the spending power of customer which will also reduce the amount of money they can spend on their pets.

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Other online retailers like eBay and Amazon can also affect the sales of products as these companies offer pet products at reduced prices.

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Small, independent specialty retailers and service providers are more agile and can quickly adapt to industry trends, as well as provide more personalized service. ·

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Changing trends- more savvy pet owners will demand healthier products

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PetSmart’s size makes it more vulnerable to negative press than its tiny competitors.

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Another economic decline (recession) will have consumers tighten their wallets more; reduced discretionary spending on their pets for services/food/products

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PetSmart has many store locations but with few distribution centers could be impacted by weather....