The CLC team will submit two deliverables to complete this assignment . They are as follows: A finished Strategic Analysis with all sections completed over the previous seven weeks, presented in a...

Executive Summary
The strategic analysis of the company – PetMed includes Internal Analysis and External Analysis. Under this strengths and weaknesses of the company have been tried analyzed. The company has a string competitive advantage but needs to focus on lawsuits and employees. Also, due to Covid, the sales of the company have grown but company needs to take more aggressive techniques to take risk and earn return. Then, we have tried to perform financial analysis and company is doing good in terms of liquidity and profitability indicating growth potential, however, debt is low. According to BCG matric the online sales and Reorder sales division is contributing majorly as oppose to phone sales or new sales division. In space and grand matrix, we understood that the competitive positioning is good bur more market penetration strategies need to adopt. Then we have tried to understand the expenditure of the company as compared to rivals, the company is spending concretively on social media marketing and it needs to explore other segments of social media marketing. According to perceptual map, the company lacks product variety, thus variety needs to be focused and focus on creating online seamless customer experience should be done.
Introduction
PetMed Express is an online pharmacy which sells the medicines for pets. It was founded in 1996 by Marc Puleo. Along with the medicines the company also sells accessories for pets. The company has continuously recorded growth in sales despite of facing continuous law suits. It is one of the leading firms in the industry due to its strategic positioning.
Internal Analysis
Strengths
The company has strong brand portfolio and has a dominant market position. The company is having good competitive positioning in the market.
Weaknesses
The company need to improve the employment benefits and work culture for employees. Also, it is facing many lawsuits, and thus need to resolve them.
External Analysis
Opportunities
Due to outbreak of Covid – 19, the sales of company increased because people started preferring online medium of sales. The investment in new technology would enable the company to provide seamless online sales experience to the customers.
Threats
The total EFE score for threat is 2.25 which is a weak indicator and means that company is able to minimize its threats. However, there is still a room for improvement to get a competitive advantage which the company is not utilizing.
Financial Ratio Analysis
Liquidity Analysis
The current ratio and quick ratio for the company has decreased on 2020 but still it is very high, this means that the company has sufficient liquidity. This implies that the company has enough current assets to meet its current obligations. However, since the ratio is very high, it means that company has high current assets which are not being utilized properly.
Solvency Analysis
The solvency of the company can be analyzed through debt to equity ratio. The total debt against all the assets is 22%, meaning it is a low risk company. Also, the debt as compared to equity is only 18% which means that company is majorly financed through equity, implying it as a low risk company.
Turnover Analysis
The accounts receivables and inventory turnover ratio is very high for the company implying that the company can easily convert the inventory into sales. Also, it is utilizing its assets to convert into sales properly.
Profitability Analysis
The profitability of the company has declined from 2019 to 2020. The gross profit margin is only 28% in 2020 while the operating margin is 11%. This means that company has high cost of goods sold and operating expenses. The ROA and ROE of the company has also reduced but still is high indicating that the company is still profitable.
BCG Matrix
The Reorder sales division contributes 85.3% of the total sales while new orders contribute only 14.7% of the total sales. Similarly internet sales contribution is 84.7% while phone sales contribution is only 15.3%. The online sales is considered as the STAR for the company implying that the company is doing very well in terms of growth rate and market share in this division. While the phone sales is CASH COWS meaning the growth is also low. In reorder, the company has high market share but there is not much potential to the growth that is why it falls into the category of QUESTION MARKS. The company should consider, intensive and integrative strategies for further investments.
Space and Grand Matrix
Space Matrix
Grand Matrix
This implies that the company should engage in aggressive strategies. The competitive positioning of the company is strong. The company needs to focus on utilizing its strengths to develop market penetrating strategies. Since the company is highly competitive in the industry, the online and Reorder divisions of the company provide excellent strategic position to the company. While the company still needs to work on New sales and Phone division as they are lacking behind.
Company Marketing Expenses VS Rival Expenses
    Comparative Table of Firms Marketing Expenses 2017
    000'
    
    PetMed Express Inc.
     $ 17,700.00
    
    Vets First Choice
     $ 15,200.00
    
    Central Garden & Pet Co.
     $ 18,416.00
    
The expenditure in advertising and promotion is low, low cost social media campaigns are being run by the company. However, company is effectively using the technology to create online campaigns and earn profits. The company should diversify the marketing portfolio to include keywords into marketing. Also, it should try untouched social media segments.
Perceptual Map
As compared to the competitors the company lacks in product variety. Many of its competitors are proving higher product variety to the customers. The company is also not positioned very well in online feasibility. Therefore, company needs to work on variety and ensure seamless online buying experience to the customers.
Financial Analysis
The company is able to attain growth in sales in last few years and the operating expenses have declined in past few years. There has also been steady increase in the assets of the company. There has been no net loss, therefore this shows that the company has growth potential in future as well.
The debt proportion of the company is low, and thus company should try to increase its debt as compared to equity. The company has high EPS, there it is doing well and is expected to do well in future.
References
Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis?. Strategic change, 7(2), 101-109.
O'Rourke, K. (2002). Florida Board of Pharmacy disciplines PetMed Express, Savemax. Internet pharmacies given another chance. Journal of the American Veterinary Medical Association, 220(11), 1583
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., & Winston, E. M. (2017). How firms implement marketing strategies in emerging markets: An empirical assessment of the 4A marketing mix framework. Journal of Marketing Theory and Practice, 25(3), 234-256.
Sessoms, G. (2017, November 21). How to Develop an Organizational Chart for Your Company. Retrieved July 29, 2020, from https://smallbusiness.chron.com/develop-organizational-chart-company-24848.html
Crossan, M. M., Fry, J. N., & Killing, J. P. (2004). Strategic analysis and action. Pearson Prentice Hall
11/1/20197/2/2020
Current Ratio5.494.46
Quick Ratio5.494.46
Total Debt-to-Total-Assets Ratio0.180.22
Total Debt-to-Equity Ratio0.150.18
Times-Interest-Earned RatioNANA
Inventory Turnover8906.4111470.59
Fixed Assets Turnover7964.437867.25
Total Assets Turnover2.792.71
Accounts Receivable Turnover111329.661773901
Average Collection Period0.000.00
Gross Profit Margin %33%28%
Operating Profit Margin %16%11%
ROA %45%29%
ROE %37%24%
Historical Ratios
ReOrder    
Online    
Phone    
New    Sales    
Quadrant    II     Quadrant    I    
Quadrant    III    
I    
Quadrant    IV    
Rapid    Market    Growth    
    
Slow    Market    Growth    
    
Strong    Compe>>ve    
Posi>on    
    
Weak    Compe>>ve    
Posi>on    
    
ReOrder    
Online    
Phone    
New    Sales    
Quadrant    II     Quadrant    I    
Quadrant    III    
I    
Quadrant    IV    
Rapid    Market    Growth    
    
Slow    Market    Growth    
    
Strong    Compeve    
Posion    
    
Weak    Compeve    
Posion    
    
PART I
        Welcome to the Free Excel Student Template Version 17.1
        Dear Student,
        By using this Template, you hereby agree to the Copyright terms and conditions. This Template should save you considerable time and allow for your presentation to be more professional. Do not mistake this Template for doing all of the work. Your assignment is to analyze and present strategies for the next three years. You will still need to do the research and enter key internal and external information into the Template. The Template does not gather or prioritize information. It does however assimilate information you enter in a professional way and does many calculations for you once that critical information is entered. Refer to the David & David textbook for conceptual guidelines for developing all matrices and analyses included in this Template. Best of luck with your project. This Template is designed for Textbook version 17ed. If using a textbook version other than 17ed, downlaod Template version 16.
        Instructions for Using the Template
    1    Please read all Template instructions below carefully before you start each new section of this Template. Only type in the green boxes. Refer to the David, David & David textbook for conceptual guidelines for every matrix and analysis in this Template.
    2    This Template is organized into three primary parts: Part I, Part II, and the respective data output pages for your respective matrices. All data entered will be entered into Part I or Part II. Part I consists of data entry in developing matrices, where Part II consists of data entry for your financial information, including ratios, financial statements, and projected financial statements. Blue buttons are provided for navigating within and to Part I, yellow buttons are for navigating within and to Part II, orange buttons are for navigating to the respective matrices and pink buttons are for navigating to your financial output tables. The navigation buttons along the top of Part I and Part II may not be visible for Apple users but all other features should work without any problems.
        Strengths and Weaknesses
    1    Enter into the Template exactly 10 strengths and 10 weaknesses, no more and no less. Your factors should be detailed and actionable rather than vague. For example, the strength: "Sales up nicely" is too vague and not actionable; "Sales were up 15% on women's apparel in China during 2018" is stated far better. Always be thinking in terms of divisions when writing strengths and weaknesses. Note women's apparel could be a division for Nike. All divisions do not need to be treated equally; allow more coverage for divisions with more revenue and those most pertinent to your strategic plan.
    2    Weights reveal how important a factor is to being successful in the industry. All weights are "industry-based." A factor of 0.10 for example is 5 times more important than a factor of 0.02 for being successful in the industry. Do not be afraid to include factors with lower weights though. To have a factor make your top 10 list (10 strengths for example out of the 100s the firm likely has), justifies its importance, yet it still may be relatively a lot less important to the industry than others factors you include. Also, be mindful with respect to what industry your firm operates. A moderate priced casual hamburger restaurant may have more in common with a moderate priced chicken restaurant than with McDonalds. Automatically considering McDonalds, Burger King, and Wendy's as the "industry" just because they all sell hamburgers may not be appropriate. Here, casual moderated priced restaurants may serve better as the "industry." After entering in the weights, check to make sure the sum of your weights equals 1.0 for your internal factors. Also, arrange your strengths with highly weighted factors listed first; arrange your Weaknesses also with highest weighted factors listed first.
    3    In contrast to weights that are industry-based, ratings are company-based and reveal how well your firm is performing. Use the coding scheme given below for ratings in an IFE Matrix: If your strengths are being cut off, simply drag your cursor between the two row numbers on the left to widen the row.
        1 = "the response is poor"
        2 = "the response is average
        3 = "the response is above average"
        4 = "the response is superior"
        Strengths        Weight        Rating
    1    The organization has a strong brand portfolio that makes it attain a dominant position across market segments due to the quality of products and services to the consumers.         0.10        4
    2    PetMed Express Inc. is strengthened by having established strategic partnerships critical for organizing their value chain effectiveness, suppliers, retailers, distributors and stakeholders’ commitment in advancing the growth of their business.         0.08        3
    3    PetMed Express Inc. involves their internal operational plan that focuses on a low cost structure model organized on a system of utilizing high quality affordable production and efficient methods.        0.08        3
    4    PetMed Express Inc. stands out as one of the leading firms in the industry and strategic positioning of their brand is critical towards maintaining a progressive approach of exceeding consumer expectations.         0.05        3
    5    PetMed Express Inc. enjoys comparative advantage across markets due to their intellectual property rights ownership in form of trademarks and patents        0.04        2
    6    PetMed Express Inc. has a dedicated and efficient work force consisting of a pool of talented personnel committed to pushing the success of the brand in assuring consumers of the best product and service across states.         0.04        4
    7    PetMed Express Inc. is progressive in the application of technological tools in their marketing, production, operational efficiency through automation and innovation to distinguish their brand from competitors.         0.03        3
    8    PetMed Express Inc. has a favorable financial position that makes it possible for the entity to invest in viable projects within markets critical for expanding their reach across market attaining strategic dominance.         0.03        2
    9    The company has an ability to employ strategic maneuvers within markets through mergers and acquisitions integrating technology companies in their business for streamlining their operations.         0.02        3
    10    The returns on capital expenditure that has seen the entity advance the revenue streams through introduction of new models within their brand portfolio initiating higher returns on investment on several innovative projects.        0.02        2
        Weaknesses        Weight        Rating
    1    Spending above the industry average on research and development, PetMeds Express is unable to challenge the top firms in the industry when it comes to innovation.         0.10        2
    2    PetMed Express, Inc. is not adequate in product demand forecasting, keeping them with higher inventory both in-house and in channel, leading to a soaring rate of missed opportunities        0.08        2
    3    PetMeds lacks legal experience and their legal department employees are not well qualified.        0.08        1
    4    Limited success outside of the core business PetMed Express, Inc. has limited growth potential, and makes it hard tomigrate to other product segments        0.05        1
    5    PetMeds has inefficient financial planning that is not executed properly. Cash can be used more efficiently by the firm according to its present asset ratios and liquid asset ratios.        0.05        3
    6    With a higher attrition rate PetMed Express, Inc. compared to its competition has to spend a lot more on training and developing its employees.        0.04        1
    7    PetMeds current assets compared to current liabilities are at low levels which creates liquidity problems in operations        0.04        2
    8    PetMed Express Inc employee turnover rates are higher than competitors with more people leaving the job, which means more spending on the training and development of the new employees        0.03        2
    9    The workload is a high per worker as With fewer workers than the actual work required, PetMeds workload is a high per worker making their employees less productive by putting them under psychological stress.         0.02        3
    10    PetMeds marketing of its products leaves more to be desired with its unclearly defined positioning and unique selling proposition which could lead to attacks from competitors.        0.02        3
        Total Weight (Must Equal 1.00)        1.00
        Opportunities and Threats
    1    Enter into this Template exactly 10 opportunities and 10 threats, no more no less. Your factors should be detailed and actionable rather than vague. Keep in mind both opportunities and threats should be external in nature. Ask yourself "Does the firm have control over this factor?" If the answer is yes, then it cannot be an opportunity or threat. For example, as a clothing retailer you may have an opportunity to "start selling clothes in China." This is not an opportunity for two reasons: 1) the firm has internal control over doing business in China, and 2) the statement is a strategy. The underlying opportunity may be "Women in China spent 20% more on athletic apparel in 2018." Note how this opportunity is specific, actionable, divisional, and external (we cannot control the culture or demand for female athletic apparel). All divisions do not need to be treated equally, allow more coverage for divisions with more revenue and those most pertinent to your strategic plan.
    2    Weights reveal how important a factor is to being successful in the industry. Read over the #2 tip under strengths and weaknesses above since the same logic applies for the external factors. After entering in the weights, check to make sure your sum of weights equals 1.0 for all 20 external factors. List factors according with highest weight items first.
    3    Ratings again are company-based and reflect how well the firm is addressing the particular factor. Use the coding scheme given below for ratings in an EFE Matrix. If your opportunities are being cut off, simply drag your cursor between the two row numbers on the left to widen the row.
        1 = the response is poor"
        2 = "the response is average"
        3 = "the response is above average"
        4 = "the response is superior"
        Opportunities        Weight        Rating
    1    Average growth in Online Pet Food and Supplies industry is projected at 12.0%        0.10        2
    2    11.3% increase in e-commerce sales for Pet Food and Supplies        0.10        3
    3    Pharmacies and Drug Stores average industry growth is projected at 2.7%        0.08        3
    4    United States cat and dog pet population is approximately 184 million        0.05        2
    5    68% of all U.S. households have pets        0.05        2
    6    Pet owners with a household income of $100,000 or more has increased from 31% to 40%        0.04        1
    7    U.S. pet owners age 55-and-over has increased from 27% to 32%        0.03        1
    8    Online Pet Food and Supplies has a market size of $8 billion        0.02        2
    9    Pharmacies and Drug Stores market size is approximately $312 billion        0.02        1
    10    Nearly half of pet owned dogs weigh less than 25 pounds fueling increase demand for pet products such as treats, toys, and apparel        0.01        1
        Threats        Weight        Rating
    1    National emergencies and unemployment could lead to overall loss of business.        0.08        3
    2    Supply costs are rising due to the economic state of the nation.        0.07        3
    3    Legal battles could be costly and absorb many of the companys resources.        0.07        1
    4    Competitor promotions could override PetMed Express promotions leading to consumer fallout.        0.07        2
    5    Fads or other trends could cause consumer taste and needs to change.        0.05        2
    6    Changes to political climates in the US could lead to business restrictions and additional fines or charges.        0.05        3
    7    Technological developments by competitors may attract customers and lead to loss of revenue.        0.04        3
    8    Competition is on the rise which may lead to a decrease in sales and market share.        0.03        2
    9    New entrants with clean backrounds entering the market could pull customers away.        0.02        1
    10    Fuel costs could force PetMeds Express to increase their product price which could lose business.        0.02        3
        Total Weight (Must Equal 1.00)        1.00
        Competitive Profile Matrix (CPM)
    1    To perform the CPM, enter exactly 12 critical success factors, no more and no less. You may use some of the ones listed below if you like but try to use ones that are more pertinent to your company. For example, if your case is Delta Airlines, perhaps include on time arrival, extra fees, and frequent flyer points as factors, rather than the canned factors below. In a CPM, factors do not need to be overly specific, but they should be divisional in nature to the extent possible. If Pepsi Co. is your firm, your factors should be about the firm's soda business, Frito Lay business, bottling business, etc. rather than just general "advertising." advertising for what division (business) are you referring to? Frito Lay's advertising, soda marketing, etc. All divisions do not need to be treated equally; allow more coverage for divisions with more revenue and those most pertinent to your strategic plan.
    2    After entering in 12 critical success factors, enter in a weight for each factor; weights are industry-based. Be sure to check the bottom of the "Enter Weight Below" column, to make sure your sum weight is equal to 1.00. It is okay for some factors to receive a low weight and a factor or two to receive a high weight of say 0.20.
    3    After entering in your weights, type the name of your company and two other competitors in the corresponding boxes.
    4    After entering in the weights and identifying your company and two rival firms, then enter in a Rating (company-based) in the "Enter Rating Below" column for each organization. DO NOT ASSIGN THE COMPANIES THE SAME RATING; TAKE A STAND; MAKE A CHOICE. In a CPM, use the coding scheme provided below for ratings.
        1 = "the response is poor"
        2 = "the response is average"
        3 = "the response is above average"
        4 = "the response is superior"
        Enter 12 Factors Below         Weight        PetMeds Express        Medstoreland        Vets First Choice
                        Enter Ratings Below
        Customer Loyalty        0.12        4        3        2
        Technological Competence        0.11        3        1        2
        Market Share        0.11        3        2        1
        Financial Profit        0.10        4        2        2
        Price Competitiveness        0.10        4        2        2
        Product Variety        0.09        2        2        2
        Employee Dedication        0.08        3        2        3
        Product Quality        0.08        4        3        2
        Customer Service        0.06        2        1        3
        Advertising        0.06        3        2        2
        Domestic Market Penetration        0.05        3        2        3
        Top Management        0.04        2        2        2
                1.00
        Boston Consulting Group (BCG) Matrix
    1    This Template allows for up to 5 divisions. If your company has more than 5 divisions, combine the divisions with the least amount of revenue into division 5, and mention the adjustment to the class during your presentation, or simply focus on the 5 divisions your 3-year plan centers around; check with your professor. It is excellent to develop a BCG/IE by geographic region, and construct another one by product (if you have data).
    2    In each division, enter a name, followed by the dollar amount in revenues for that division. Do not include M or B for millions or billions, but do drop off zeros. For example, for $100,000,000, you could enter $100,000 or $100, just be consistent.
    3    After completing Step 2 in developing a BCG, enter in the dollar amount in revenues for the top rival firm for each division. Note, the top rival may be you and in this situation enter in your company's revenue for that division. Also, note the top rival may be different for different divisions. For example, if your firm is Avon, Avon's top rival in its lipstick division may be Revlon, but for nail polish, the top rival...