Pets.com SWOT Analysis

STRENGTH

1. Huge cash to spend. Heavily funded. Backed by Amazon.com. 2. Direct access to Amazon.com’s network resources and e-commerce skills and expertise, so technology skills and know-how is not an issue. 3. Strategic alliance with Yahoo!, GO.com (Disney), Discovery TV network (Animal Planet) and association with the American Veterinar Medical Foundation can be a very strong network positioning strategy. 4. Pets.com is the most recognizable domain name, highly visible website with most comprehensive website content and best design. Pets.com website is so popular in the internet and mainstream media that at one time becomes the most visited pet supplies website in the world. 5. Most competitive price and service offerings (plus free delivery). Able to offer quality products of which becoming today’s key plus factor to the passionate middle-class and high income pet owners. 6. Largest stock keeping units (SKUs) in America to ensure reliable supply and on time delivery to customers.

WEAKNESS

1. Competitors offer similar products. Pets.com still could not find key market differentiator. 2. Huge expectation on online marketing and promotion. Specialized team to maintain up-to-date and latest website content and information may incur increasing administration costs. 3. Pets.com have weak brand name as compared to more established rivals. 4. Pets.com don’t have physical stores presence nationwide and globally. 5. Reliability and security on the internet can halt and even destroy online business almost overnight. 6. High transportation costs and insurance liability due to free delivery policy to customers regardless location 7. Geographical factors, warehouse location and distance may result to 2-3 days for orders to reach American homes

OPPORTUNITIES

1. Pets.com can leverage further on Amazon’s full potential-market penetration and trustworthy e-commerce reputation 2. Can take full advantage on average American pet owners passion and spending habits on pet food and supplies 3. The right time to tap into the world’s fast growing and lucrative national and international markets. 4. Can take advantage on the fact that most trusted and high quality pet foods are produced in the US 5. Can take advantage on average American pet owners’ hectic lifestyle. Promote cost and time saving. 6. Average American pet owners are economically stable. Price is not a big issue. 7. Develop own brand name and proprietary products

THREAT

1. There will always be a better competitors’ website content and offerings

2. Don’t underestimate internet capabilities-consider problems at remote sites and countryside

3. Simpler user-friendly blogs, mobile applications and smartphones can replace website

4. Increasing transportation and shipping costs

5. Transportation risk-lost and damage

6. Internet customer bad experience, unfavourable comments and reviews can sabotage any online business that is not ready and fully prepared

7. Growing e-commerce safety concerns can influence internet users to just browse and shop at competitor’s outlet

8. Competitors physical stores at almost US neighbourhoods-providing more human approach (touch and feel) and faster delivery time

9. Hard habit to break-still many pet owners prefer visit local neighbourhood stores than buying online

10. Competition by any brick and mortar neighbourhood establishment

11. Pet supplies are not books. People only order pizzas online-Amazon.com strategy may not work at certain environment and condition. Pets.com need to show better value-add and pull-factor.