Strategic Leadership - Industry of Pet or Dog Care Services of Canada - Case Study Example

Strategic leadership Background of the industry of pet or dog care services In this age, the market of dog-care experienced a serious downfall due toeconomic depression in the recent years but however, it is expected to attain a significant improvement in the market by 2015. This is mainly due to the increased consciousness and awareness of the needs of the pets specially the dogs in the recent years. Moreover, the demand of the qualitative food staffs of the pets like the dogs is also increasing that might act as a catalyst for the organizations operating in this segment to improve its image and profitability in the market among other rival players. Along with this, the increased craze for branded foods staffs for the pet dogs is also considered as one of the important causes that may amplify the sustainability and competitiveness of the company of Leash a Puppy in this industry among other existing contenders. However, it is estimated that the average expenditure on the pet dogs is more than about CAD 10$, which may prove effective for the companies operating in this segment to amplify its productivity and distinctiveness in the market among others. Apart from this, the Canadian pet care market presented total revenue of CAD $ 3.23 million in the year 2012 with a CAGR of 8.2 %. Moreover, the total sale of the pet care products or services proved extremely lucrative for the market of Canada that improved its economic condition and dominance among other nations. Competitive scenario of the industry of pet or dog care services of Canada The competitive scenario of the pet or dog care industry of Leash a Puppy, is analyzed with the help of porter’s five forces. Bargaining power of the buyers or customers- the bargaining power of the customers is quite low. This is mainly due to lack of presence of numerous brands or organizations in the segment of pet or dog care. Due to which, in order to attain qualitative and branded food products for their pets, the buyers or customers tries to offer the quoted price to the sellers. As a result, the rate of demand and popularity of the companies like Leash a Puppy is quite within the markets of Canada. However, in order to improve its dominance and reliability within the minds of the customers, the company of Leash a Puppy might try to offer various types of inventive product lines such as Kibbles, milk-bone trail mix and many others. Only then, the company might attract a wide range of pet or dog loving customers that may increase its portfolio and supremacy in the market of Canada among others. Threat of new entrants- the threat of new entrants is quite high in this segment of pet or dog care. This is mainly due to low economies of scale. As a result, the companies or brands operating in this segment might try to develop varied types inventive products as well as toys so as to enhance its profitability and competitive advantage in the market of Canada. Threat of substitute products- the threat of substitute products in the segment of pet or dog care products is extremely high. As a result, in order to enhance the brand image and demand of the company of Leash a Puppy in the market of Canada, varied types of hygienic product lines need to be developed. Along with this, the company of Leash a Puppy needs to offer high concentration over its promotional activities so as to improve its level of awareness among the customers. Only then, the rate of switchover costs of the customers towards other brands might get reduced that may enhance its profitability and demand in the market of Canada. Bargaining power of the suppliers- the bargaining power of the suppliers is extremely high. This is mainly due to the superb quality of distribution of the raw materials, components and many other services. Due to these underlining causes, the demand and popularity of the suppliers in this segment is increasing at a rapid pace. Competitive rivalry- the rate of competitive rivalry is quite low in this segment due to lack of competitors. This might prove extremely advantageous for the company of Leash a Puppy to increase its demand and market share. Along with this, due to the presence of wide range of product lines, the rate of reliability and dependency of the company of Leash a Puppy might get enhanced. Thus, it might be clearly revealed from the above mentioned porter’s five forces, that in order to improve the competitiveness and portfolio of the company of Leash a Puppy, it need to enhance its types of products lines. Roots and evolution of the success of Leash a Puppy The root cause for the success of the company of Leash a Puppy in this segment of dog care market is due to its business and cooperate strategy. In order to increase the brand image and profitability of the company of Leash a Puppy in Canadian market, it tried to implement price discrimination strategy. This means the cost of the products of the dogs is different in different locations. As a result of this type of business strategy, the portfolio and reliability of the company enhanced to a significant extent that increased its market share and range of customers. Moreover, due to the implementation of this type of business strategy, the total sale of the products of the company of Leash a Puppy also increased that amplified its profitability and dominancy in the market of Canada. Therefore, it might be stated that the implementation of such a business strategy proved both effective for the company as well as the customers as well. This strategy helped to increase the profit margin and total revenue of the company in regions of high-lifestyle and premium customers whereas the level of uniqueness and distinctiveness of the company enhanced in parts of low-income profile regions. As a result, a wide range of customers became attracted towards the company that amplified its competitive position and equity in the market\. Other than this, the competent marketing strategy also proved effective for the company of Leash a Puppy in the regions of Canada. This is because; it helped to improve its awareness and dependency within the minds of the customers. Hence, the strategy of competent marketing also enhanced its market share and demand of its products as compared to many other rival contenders. How the company of Leash a Puppy changed over time In order to enhance or retain its portfolio in the market of Canada, the company of Leash a Puppy implemented product diversification tactic. According to this tactic, the company desired to offer varied types of product lines such as dog leashes, food bowls, shampoos, dog coats, beds, paw balms and many others. By doing so, the company of Leash a Puppy became successful in enhancing its demand and image in the market of Canada as compared to many other rival players. Moreover due to the implementation of the tactic of product diversification not only its range of customers also enhanced by almost 15 percent but also improved its position and market share. Apart from this, implementation of the strategy of brand extension proved effective for the company of Leash a Puppy proved extremely advantageous for the company. As a result, the profitability and brand image of the company enhanced that amplified its supremacy and identity in the market of Canada among others. Moreover, due to the presentation of varied types of diversified products, the demand of the company of Leash a Puppy also enhanced that improved its competitive advantage and sustainability in the market of Canada. Therefore, due to the implementation of these strategies, the company of Leash a Puppy changed its image and position in the market of Canada. New and Emerging competitors In this age, the feelings and emotions for the domestic pets are changing rapidly. As a result, maximum extents of the house owners are trying to spend a huge amount of revenue over their pets. Due to which, the demand of the products of the pets are also increasing at a rapid pace in the markets of Canada as compared to others. As a result, the scope and intensity of numerous new entrants within the segment of pet products are also increasing thereby making it more competitive. Therefore, in order to cope up with the threats offered by the new entrants, the existing company of Leash a Puppy might try to offer varied types of inventive products and services. Only then, the company might become successful in attracting a wide range of new customers of varying income groups that may enhance the profit margin and brand image in the market of Canada. Apart from this, the company might also try to offer more attention over the promotional practices in order to enhance its rate of awareness and reliability within the minds of the customers. Only, by implementing these practices, the company of Leash a Puppy might amplify its market share and dependency in the market of Canada as compared to many other rival contenders and their competitive rivalry. Industry forces acting over the organization of Leash a Puppy The industry forces that offer a significant impact over the position of the company of Leash a Puppy might be analyzed with the help of PEST analysis. Political- the products of the segment of dog care or pet care may not be affected to a significant amount due to the implementation of the policy of tariffs or trade restrictions. Due to which, the profitability and productivity of the company of Leash a Puppy might get enhanced to a certain extent that may improve its portfolio and demand in the market of Canada continuously in the future era. Economic- the demand of the products of dog care or pet care segment might get affected due to inflation or depression within the nation. As a result, the profit margin and productivity of the company might also get affected significantly as compared to others. Social- the company might try to offer, health conscious products to the pets so as to enhance the reliability and dependency of the company within the minds of the customers. As a result, the total sale and revenue of the company of Leash a Puppy might get enhanced that may increase its dominance and equity in the market of Canada. Technology- implementation of inventive technologies might prove effective for the company of Leash a Puppy to enhance its quality and costs of the products. As a result, the demand of the products of the company of Leash a Puppy might get enhanced that may increase its total revenue and net income in its future age. Thus, from the above mentioned information, it might be analyzed that the industrial forces offers a significant impact over the image and position of the company of Leash a Puppy in the market of Canada among others. Outlook for the industry of dog care services After analyzing and evaluating all the above mentioned information, it might be depicted that the industry of dog care services is becoming extremely competitive. This is mainly due to the entrance of numerous rival players along with numerous substitute products. As a result, the bargaining power of the customers might get enhanced resulting in amplification of the switchover costs to a significant extent. However, in order to cope up with this upcoming challenge, the company of Leash a Puppy might try to offer varied types of inventive product lines so as to increase its dominance and popularity in the market. Apart from this, due to the presence of numerous substitute products, the switchover cost of the customers is also increasing at a rapid pace. However, in order to retain the customers within the company of Leash a Puppy, it needs to offer highly value-added, qualitative products at a competitive cost. Only then, the company might become successful in enhancing its brand image and equity within the minds of its target customers (Eurominitor, 2014). Major opportunities and threats The industry of dog care or pet care service comprises of varied types of opportunities and threats, which are presented below: Opportunities: High demand- as the intensity of domestic pets is increasing at a rapid rate. So the demand of the products of pets especially of dogs is also increasing. As a result, the profit margin and total revenue of the companies operating in this segment might get enhanced. High image- as the demand of the products of pet care is increasing, so the image and portfolio of the organization in this segment might also get enhanced. This might increase the competitive advantage and position of the companies in the market of Canada. High profitability- due to the enhancement of the demand of the products, the profit margin of the organization might also get increased. As a result, the level of sustainability and brand value might get enhanced significantly among others. Threats: High switchover cost- as the number of competitors might get enhanced; the rate of switch over costs may also get improved. As a result of which the position and demand of the organizations might get reduced significantly in long run. High competition- due to the presence of numerous competitors, the rate of rivalry might also get increased. This might reduce the position and image of the organization within the minds of the customers. Numerous substitutes- due to the presence of numerous substitute products, the rate of dominance of any organization gets reduced. Moreover, the switchover costs also increases that may hinder the prosperity of the organization. Recommendations In order to retain the competitiveness and position of the company of Leash a Puppy, its extremely essential to offer high level of concentration over research and development activities. By doing so, the company might become successful in developing varied types of inventive product lines that may increase its portfolio and demand in the market. Apart from this, by developing varied types of products, the company might become successful in attracting a wide range of customers that may increase the profitability and net income of the organization in the market of Canada. Moreover, in order to improve its dominance and position in the market, the company of Leash a Puppy might try to offer competitive pricing strategy. Only then, the company might become successful in presenting qualitative products at an affordable price so as to improve its dominance. Hence, it might be clearly stated that, implementation of the strategy of competitive pricing, the company of Leash a Puppy might enhance its popularity and reputation in the market of Canada. Moreover, by implementation of this strategy, the company might become successful in retaining a wide range of customers of varying income groups. As a result, the profitability of the company might get increased that may enhance its portfolio and supremacy in the market of Canada among many other rival players. Therefore, in order to enhance the brand value and distinctiveness of the company of Leash a Puppy, the above mentioned strategies or activities need to be followed. Reference Eurominitor. (2014). Pet products market research. Retrieved from: http://www.euromonitor.com/pet-products. Read More