Petstore.com Chapter 4, Case 2. internet. business models . text and cases. Steven Young COS498. Overview of Petstore.com Introduction. Introduction Petstore.com offered pet food and supplies online.
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Chapter 4, Case 2
text and cases
Steven Young COS498
“All things Animal“
Establish a leadership position through innovation which caters to the “emotional bond that exists between people and their pets,"
Partnership with Discovery Channel was:
The company adopted the following strategic objectives:
Grocery stores (supply approximately half of the pet food market)
All three others entered strategic partnership in 1999.
Pet food market 12.1 Billion in 1999
Pet supplies market = 4.5 Billion in 1999
Pet-related gifts / novelties = 2.5 Billion in 1999
Online market for pet food and supplies = 3-6 Billion
Petstore run-rate of $3M for year, w/gross margin of 52%
Discover Channel (Animal Planet)
Joshua Newman, President and CEO
Chris Luhnow, Senior VP, Corporate Development
Brian Sherman, VP Merchandizing
Mark Reilly, VP Inventory Management
Economies of Scale
Customer Retention Rates
This is a hard business to capture market share, especially because…
The goals and strategy failed as Petstore.com was bought out by Pets.com in June of 2000
The only players left were the #1 and #2 brick and mortar businesses!