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Pets.Com

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Lina Geoushy
900071827
MGMT480-01
Dr. Iman Seoudi

PETS.COM

Describe the situation faced by Wainwright when she joined Pets.com as CEO?
The market for pet products was extremely fragmented. Sales went through multiple stores like mass merchants, independent pet stores, and supermarkets
The Pet industry was attractive and it was appealing to a large number of competitors
Analysts were optimistic because the internet had already proven to be a successful distribution channel for software, music, and books
Pets.com had three main competitors: Petopia.com, Petsmart.com, and Petstore.com
Wainright had been hired to lead the company and to establish it as a market leader of the online pet supplies category.
Wainright feared and was …show more content…

Pets.com , as well as many other Internet ventures, did not have a large enough market nor did it have the seed money to wait for its growth.
Pets.com had poor positioning, they were not able to give pet owners a compelling reason to buy supplies online, there wasn’t a unique selling proposition offered to the customers. In a highly competitive market,they failed to offer real added value and they also failed to differentiate their brand from others.
Because no good rationale was offered for its existence, Pets.com followed the positioning adopted by so many of its competitors: low prices, they relied on low cost.Until the end of its operations, the company sold merchandise at prices below cost, which is hardly a sustainable business proposition, particularly in a product category that isn't known to be particularly price-sensitive.
Pets.com's problem is that they seem to have overestimated the real number of active Internet browsers. Many people have "access" to the Internet yet very rarely use it. And among those who do, a little less than half shop on-line
Emotions are not enough to get consumers to buy online. Although people loved the sock puppet, but alone they can’t support a brand. So

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