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Running Head: PETS.COM CASE
In 1999, Pets.com web store was introduced to identify the gap of availability of limited
product which was undertaken by the big regional specialty stores, grocery stores and superstores
of these pets. With the internet business wave globally, the Pet.com industry used the open
market to sell its share shopping to get a public offering that is favorable. In the year 2000, there
was a fall in the earnings got from each share. For the survival of the company, a restructuring
plan required to be kept in place so that the industry would gain enough capital. 1
Financial strategy key issues
In 1997, the United States pet industry had increased its sales to around 23 dollars from
1993. That was approximately nine per cent every year. According to the research, more than
half of the US household owned pets, and in most homes, the pets were more than one. The
products market of these pets has been served traditionally by retailers who are store based.
The company which was formed in 1999 is known to use a puppet of dog sock in its
advertisements. It works as an online retailer of these pets products. As a result, this has helped
to integrate the sale of products which contains information provided by the experts as well as
From the time of inception, the company gains its revenue from the services it offers
through the internet. The sale may be directly billed to the personal client check or credit card.
Under the transaction via the credit card, the company would receive payment after at most five