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Like any other industry, the Pet Food Industry exhibits a vibrant and competitive industry. This competition is immensely influenced by the entry of new debutants in to the industry. However, the entry of debutants into the industry is influenced by the economies of scale. This essay gives the strategies for such a dynamic and competitive industry like the Pet Food Industry.

As mentioned, the industry incurred a lot of competition as a result of new debutants in the mid 1980s, (Stuart & Collis, 1991). However, as a result of economies of scale, the competition has hence been directed towards measures such as participation in multiple lines and product differentiation. Thus, the competitive nature of the industry can be outlined from the following perspectives.

Competitive Interaction

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This results from the entry of incumbents into the industry. Their entry into the industry creates a dynamic market.

Industry Evolution

Evolution of the industry has an immense effect on the competitiveness of the industry. It results in competition shifts from price wars to product differentiation.

Technological Change

Changes in the technology also have effects on the competitiveness of the industry. Changes in technology could either sustain or kill existing businesses in the industry.

As a result, it is natural for incumbent companies to employ defensive strategies in order to withstand competition. Some of the defensive strategies employed are outlined below.

Containment

Limits the extent to which a new business affects an existing one.

Neutralization

Refers to an effort to block innovations before their inception.

Shaping

This is the careful crafting of the innovations in a way to benefit the existing business.

Absorption

Absorption could be employed to minimize effects of competition.

Annulment

This involves product improvement so as to wither off competition.

 However, rivalry within the Pet Food Industry remains stiff. As a result, each competitor attempts to maintain a market share thorough the use of measures such as advertising, price wars and product introduction and differentiation.

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