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Case 4 The Pet Economy
CASE ABSTRACT
Americans spend $41 billion a year on their pets.This is double the amount spent on pets a decade ago."Pet economy" is expected to grow to $52 billion in the next two years.
Money spent on pets go into categories such as food, medicines, and services.Food accounts for 40 percent of all money spent on pets, followed by veterinary care and over-the-counter medicines.As people spend more time, attention, and money on their pets, a number of niches have emerged within this economy.An example of an entrepreneur who has exploited a niche is Gregg A. Miller, whose productNeuticles is a patented testicular implant (for neutered dogs) that sells for $919 a pair. The pet economy shows no signs of slowing down.
KEY POINTS• The nature of corporate social responsibility • The impact of a changing competitive environment on business strategy • Identification of global trends that shape an industry
DISCUSSION QUESTIONS
1. How have pet owners' attitudes toward their pets changed in recent years?
2. Which part of the pet economy appears to be the most attractive?
3. Why is animal medicine a controversial issue?
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