Executive Presentation:

Chewy.com
Team DKRW
2/26/2020
OGL 355
Dr. Brent Scholar
William Kristen Deborah Rebekah
Harris Neuhausel Acosta Pham

Welcome to our presentation! This will be an executive presentation for OGL 355, Leading
Organizational Innovation. Our team decided to research Chewy.com. This presentation was
created by William Harris, Kristen Neuhausel, Deborah Acosta, and Rebekah Pham. We hope
you enjoy.
 Agenda

● Introduction
● Organization Structure and Chewy’s leaders
● Environmental Analysis
● SWOT
● Competitive Advantage
● Going Global
● Recommendations
● Final Thoughts

This presentation will take a close look into the company Chewy Inc. the online pet
food and supply company. It will uncover the company’s organizational structure and
focus on its four core leaders. The presentation will then explore the external forces
that will affect the company’s future as well as identify their target market. It will take
a closer look internally as to what forces may allow the company to continue to grow
or the opposite. It will explore what gives Chewy the competitive advantage and then
will consider if they are ready to take a leap by going global. Lastly, this presentation
will provide its recommendations on what innovative ideas might help Chewy to
become even more successful.
 Introduction

Mission

“To be the most trusted and convenient online

destination for pet parents (and partners),
everywhere”.

(About Us, n.d.)

Images taken from:

https://webstockreview.net/images/clipart-animals-parent-8.png
https://www.modernretail.co/wp-content/uploads/2019/06/Screen-Shot-2019-06-14-at-11.12.40-AM-750x453.png

As a team of dog owners and dog enthusiasts, we chose to research Chewy. Chewy is
an online retailer of pet food and other pet-related products.

Chewy’s mission is to become the most trusted and convenient destination for pet
parents everywhere (About Us, n.d.). They view pets (and pet parents) as family and
are obsessed with meeting their needs and exceeding customer expectations through
every interaction.

Throughout our presentation you will learn more about Chewy and how they fulfill
their mission. Additionally, you may see both “Chewy” and “Chewy.com”. We have
agreed to use “Chewy” in reference to the organization and “Chewy.com” in reference
to their website.
 Organizational Structure

On this slide you will see a visual of Chewy’s Organizational Chart. The
Organizational structure is a little complex. There is the CEO, Sumit Singh, followed
by 20 other direct reports. There are only four executives in the Chewy Organization.
These include the CEO (as mentioned before), the CFO, the CTO and the General
Counsler. However, Chewy has several vice presidents ranging from vice president of
Corporate Strategy to Vice President of E-Commerce (“Chewy - Org Chart”, 2020).
Each of these individuals play a crucial role in the organizations success. This Image
was taken from https://theorg.com/org/chewy
 Leadership
Sumit Singh Mario Marte
Chief Executive Officer Chief Financial Officer

Satish Mehta Susan Helfrick

Chief Technology Officer General Counsel

Images taken from https://investor.chewy.com/governance/executive-management/default.aspx

After looking at the organizational structure, I would like to highlight the leadership at
Chewy. Summit Singh is the CEO and has been since April of 2019. According to
Chewy’s website, “In his role as CEO, Sumit leads more than 10,000 “Chewtopians”
(as we like to call ourselves) towards our mission of becoming the most trusted and
convenient online destination for pet parents everywhere. He joined the company in
2017, as Chief Operating Officer” (2020, p.1). He has over 17 years of leadership
experience and was previously overseeing Amazon’s North America Pantry. He leads
through a customer first approach and is focused on Chewy’s long term growth.

Mario Marte is the Chief Financial Officer. He has been with the company since 2015
when he joined as VP of finance and treasury. According to Chewy’s website, “In his
position as CFO, Mario is responsible for leading Chewy’s financial activities,
including strategic planning, operations, accounting, reporting, investments, and
overseeing all financial functions. Most notably, Mario led his team in handling
Chewy’s initial public offering (IPO) in 2019” (2020, p.2).

Satish Mehta is the Chief Technology Officer. He joined the company in June of 2018.
He has over 20 years of relevant experience and according to Chewy’s website, “In
this role, Satish is responsible for overseeing all infrastructure technologies across the
company, leading the technology teams that support Chewy’s rapidly growing
ecommerce platforms and developing innovative solutions that enhance the online
experience for Chewy customers” (2020, p.4).

Susan Helfrick is the General Counsel. She has been with Chewy since 2014 and has
over 20 years of relevant experience. According to Chewy’s website, “In her position
as CLO, Susan oversees all aspects of Chewy’s legal functions and activities, directs
legal affairs and provides strategic advisement and guidance to senior management”
(2020, p.3).
 Environmental Analysis

Chewy’s Target Market:

Passionate pet owners or

“pet parents” that want
quality items and care for
their loved ones.

To stay competitive, a company must know what forces are out there that may impact
their profitability and viability. They must understand the industry they are in and
work to create a plan to address those forces. An Environmental Analysis using
Porter’s Five Forces model helps to better understand those forces that can impact the
company. They Include: Threat of New Entrants, Bargaining Power of Buyers,
Bargaining Power of Suppliers, Threat of Substitute Products, and Industry Rivalry.

For Chewy, they have a low risk for threat of new entrants because of how challenging
it would be for a company to now enter the specialized market. Chewy has established
its brand name and has built a loyal customer following. It would be too large a
gamble for a new company to build what Chewy has and if they did they would not
see profits for a very long time.

The risk for bargaining power of buyers for Chewy is high. Consumers have the ability
to buy their pet products from many different sources from Amazon and Costco to
specialty pet stores like Petco and mom and pops. Chewy must continue to provide
services and products that will entice customers to purchase through them rather than
other sources.

The bargaining power of suppliers is low. Chewy supplies products from over 1800
brands (2019, p. 61). This gives them the flexibility to offer a wide range of products
and not allow a singular supplier to raise the prices. In addition to the numerous
suppliers, Chewy has started offering their own brand of products.

The threat of substitute products for Chewy is low. Chewy offers unique services and
highly skilled customer service. No other online pet retailer offers these services. They
offer services like specialized packaging, veterinary services, special momentos, and
empathetic gestures when customer loved ones pass away.

The threat of industry rivalry is moderate. Chewy has many competitors that sell pet
food and products. Their largest competitor for online pet retailers is Amazon. If they
do not stay innovative and ahead of the curve companies like Amazon can slowly chip
away at Chewy’s growing business. The reason the threat is moderate and not high
however, is because Chewy has established itself as a unique pet supply retailer and no
other company has positioned themselves in this way.

Understanding a company’s target market is crucial for the success of a business. In

the case of Chewy, their target market is passionate pet owners or “pet parents” that
want quality items and care for their loved ones. These passionate customer consider
their pets as part of their family and want more than just a bag of food and a simple
toy. These customer want to buy from a company that truly cares and understands
animals and are compassionate. Chewy has doubled down on this and his put
themselves in a position of accelerated growth.
 SWOT

This SWOT table lists several strengths, weaknesses, opportunities and threats
specific to Chewy.com. Chewy could use the following matrix “to exploit the
opportunities and minimize the threats by leveraging its strengths and overcoming its
weaknesses” (James, 2018, para. 3).

Chewy has several internal strengths that will help them to continue their
pursuit of being the most trusted and convenient online destination for pet parents
everywhere. The towering internal strength is customer focus. Chewy offers 24/7,
100% unconditional satisfaction guaranteed customer service access to pet experts. In
February of last year an article titled, Chewy Beats Amazon In The Online Pet Supply
Business; Customer Service Is The Key, they state “Chewy employs more than 1,000
Customer Service Reps (CSR’s) – all in Hollywood, FL, and is looking to hire 400
more over the next six months” (Rosenblum, 2018). Another strength of Chewy is that
they have a unique offering of services that help to build brand loyalty. Chewy goes
above and beyond for the customer. Customers have left candid reviews that Chewy
had sent their condolences for grieving pet parents, artwork of their pet when they are
a new customer or even unique packaging that ensures the purchase is fully protected
(Gingiss, 2018). In addition to the unique services, Chewy offers a selection of over
1800 brands to build the best selection possible. If Chewy can continue focusing on
 these internal strengths, they have a great chance of concurring their mission.

That being said, Chewy has numerous internal weaknesses that can be
identified. One of them being the high-stress level that can result in low employee
morale. Low employee morale can decrease organizations productivity. Making
employees feel unsatisfied and disconnected from their working environment which
will cause employees to leave the organization. Therefore, resulting in an increase in
employee turnover. Another factor is the organization’s limited allocation for
marketing and promotional projects (James, 2018). Due to the limited resources, it
affects the organization’s capability to increase its consumers and encourage periodic
purchases. Chewy “currently provide overnight delivery for more than 60 percent of
its customers”, the organization wants to reach 80 percent (Morrissey, 2017). Due to
the increased demand for products, Chewy needs to make a capital investment in order
to provide customers with fast and efficient service by doing everything in house
(Morrissey, 2017).

Regarding external opportunities with Chewy, there is a larger market of

people who are using e-commerce than ever before. Many people choose to do their
shopping online for the convenience of having everything delivered to their door. This
opportunity for Chewy means that more people will likely choose their company,
rather than going to a brick and mortar store. Next, there has been a significant amount
of technological developments in recent years. This helps Chewy because the more
their company becomes automated, the more money they will save on labor costs.
Consumers are also becoming increasingly more conscientious of what they are
feeding their pets. Chewy has an opportunity to capitalize on this by carrying high
quality and higher priced items. There is also an increase in the average spending by
consumers and an increase in the average income. When consumers have more, they
spend more and Chewy has an opportunity to gain new customers. Finally, there has
been lower inflation rates that are expected to remain low for at least the next several
years. Low inflation rates means that Chewy will have lower costs of inputs (James,
2018. para. 5).

As with many online retailers, Chewy’s audience is comprised of conscious

consumers. Customers who make frequent purchases, search for healthy foods, or
prioritize ethically made toys are also more likely to be concerned with the packaging
and environmental impact of their purchase. With Chewy’s current packaging, they
may soon attract “negative publicity and criticism from the environmentalists” which
 will affect “the brand image in a competitive market” (James, 2018, para. 10).
As such, Chewy’s business may be threatened by organizations who are willing and
able to provide environmentally friendly packaging with their high quality products.
Additionally, having a shortage “of skilled labour in the market can make it difficult
for the organisation to attract talent with the right skills set” (James, 2018, para. 10).
Because Chewy is a relatively new online retailer, skilled employees may not be
attracted to the organization because they fear Chewy may lack the financial security
of a well-established organization. Consequently, the skilled labor force that Chewy
demands to maintain their growth will be more attracted to companies such as Amazon
or Walmart. Finally, customers are able to purchase almost all of the products that
Chewy offers from a different retailer (both online and in person). Chewy’s market
share shrinks as their customers are constantly influenced by competitors. With an
extensive list of competitors and a shrinking market share, Chewy’s business is
affected two-fold; as they lose customers, their direct competition is gaining them.

The SWOT analysis table seen here identifies the key strengths, weaknesses,
opportunities and threats that pertain to Chewy. Through SWOT analysis chewy is able
to plan out strategic business plans as it provides a holistic view. It gives the
organization opportunities to focus on their strengths and overcome weaknesses. It
diminishes its threat to make the most out of the opportunities.
 Competitive Advantage
Chewy’s Competitive Advantage:

- Customer Service
- Market Share and Brand Reputation
- Large Distribution Centers

Competitive Advantage Point of View : The Resource-Based View

- “According to Chewy's CEO, the pet food and supplies market grew by $1.8 billion in 2018

and Chewy was $1.4 billion of that growth. That means Chewy was 78% of the market's

growth."

Competitive advantage is what separates an organization apart from its competitors. It

is the one thing the company has that no one else does. Competitive advantage can be
anything that is tangible or intangible and so can resources (Coulter, 2013, p. 31). In
our research, we analyzed Chewy.com using the resource-based view because it fits
closely with how this organization works.

Have you ever had an experience with Chewy’s customer service? If you haven’t, let
me tell you a quick story. My dog Stella was a 11 year old dog who required
prescription dog food. I ordered this food from Chewy once a month and it was on
auto renew. And let me tell you, it was expensive. On December 26th, the day after
Christmas Stella took a turn for the worst and passed away. I reached out to Chewy
because her dog food had already been shipped. Chewy was incredible as i was
inconsolable and immediately refunded me. In addition, they told me to donate the
food to a local shelter and sent me the most beautiful card signed by their staff in
honor of Stella. I am a customer for life. It is pretty unbelievable, right? This is one of
the areas where Chewy has a strong competitive advantage. Excellent customer
service is hard to create in an environment that has not previously focused on that
aspect of their business. Chewy has had this service from day one and it keeps their
customers coming back.

Next, we have market share. Chewy has market share and brand reputation of the
online pet food and supply customer base. This intangible resource has been built over
time and is something other companies like Amazon can’t buy from the market. With
Chewy’s unique services and customer service they have built up a large customer
base and continue to grow. : Read quote above: (Tseng, 2020)

Finally, Chewy has large distribution centers. This tangible resource is a crucial part of
their competitive advantage. Chewy is continually expanding its distribution centers
due to the demand and popularity. E-Commerce is rapidly increasing and so is the use
of Chewy’s services. Large distribution centers means more product availability and
larger selections of products. This makes shopping easier for customers because they
know they’ll have what they need and they’ll have it within 1-2 days (Rosenblum,
2018, para. 13).
 Going Global
● 61% of Canadians own pets
● Common language - English
● 57% of Canadians look for the best deals
● Shared country values
● Partnership and Strategic Alliance

Images taken from:

https://www.uscanadaautotransport.com/wp-content/uploads/2019/01/us-canada-flag-map.png
https://petdoorproducts.com/wp-content/uploads/2017/10/WeLoveOurPets-icon.png
https://www.chewy.com/assets/img/cart-box.jpg

Currently, Chewy does not have public plans of a global strategy. Through our
research, we suggest Chewy to expand its services to Canada. There are a few factors
that are beneficial to Chewy’s expansion. One of them being their love for pets. 61%
of the population in Canada own pets (Rover, 2019). There are areas like Toronto who
have specialized parks for pets. It just goes to show how Canada really love pets.

In addition, U.S and Canada have the common language of English. Having a common
language makes it an easier market to enter. Canadian’s are always looking for the best
deals (Buxton, n.d.). Chewy offers a wide variety of products that customers could
benefit from this. 57% of Canadians will travel from store to store just to find the best
deals (“How To Take Your Company Global”, 2005).

Canada and the U.S. share “important values such as pride, belief in equality and
diversity, and respect of all individuals”(Canadian Way of Life:Study in Canada, n.d.).

Partnership and Strategic Alliance. Canada is familiar with American brands such as
Starbucks, which makes Canada feel connected to America and will give Chewy
products a try.
 Recommendations

- Invest in a virtual Veterinarian for

Customers
- E-cards
- Go international (start with
Canada)

Image taken from https://images.app.goo.gl/6mYEwwiCw7r4cWNP7

As a society, we have humanized almost everything in the lives of our pets, from
dressing in matching clothes to dog instagrams. One way Chewy can stay innovative is
to partner with a veterinarian that customers can communicate with while shopping.
This can be comparable to an on-call nurse or pharmacist. Chewy will retain existing
customers and gain new ones.

With the digital age evolving, Chewy could expand its unique services with electronic
cards or videos to personalize greetings or special occasions for customers. This will
also help reduce the cost and all customers will be able to receive this unique service.

As mentioned before, we believe Chewy should make the jump to Canada. Canada
shares many similarities with the U.S. as far as passionate pet owners go and the U.S.
is already Canada’s number one trade partner. Expanding Chewy’s market into Canada
will allow for an easy test market to see how successful they can be with expanding
internationally.
 Summary
● Organization Structure and Chewy’s leaders
● Environmental Analysis
● SWOT
● Competitive Advantage
● Going Global
● Recommendations

Thank you for viewing our presentation. We hope you learned something new about
Chewy.

In this presentation we covered a substantial amount of information. In summary,

Chewy’s organization is complex because they are an online retailer. However, they
have four main leaders; their CEO, CTO, CFO, and general counsel. Chewy is an
organization of over 10,000 employees.

When looking at Chewy’s environmental analysis, it is clear that their target market is
passionate and conscious pet owners. Chewy’s highest threat currently is bargaining
power of buyers. Currently, buyers have many option with purchasing pet product
online. That being said, the threat of new entrants is low to Chewy. They are a
company that has built their consumers’ trust and they intend to keep it that way.

A SWOT analysis is a great tool for Chewy to analyze their current strengths and
opportunities. Internally, Chewy has a strong financial backing. However, they can
improve their attention to the market to understand how they fit in (or stand out).
Externally, Chewy capitalizes on their consumers’ desire to offer their pets healthier
food options. Going forward, they will want to be aware of their skilled labor force
and how they can attract the right talent to their organization.

Chewy’s competitive advantages are their customer service, market share/brand

reputation, and their large distribution centers.

If Chewy wanted to go global, we would recommend they start with building their
market in Canada. This will be the easiest for their brand and for their potential
customers. Without language barriers or vast cultural differences, Chewy has the
opportunity to further build their reputation before expanding into more diverse
countries.

To stay competitive, we would recommend that Chewy invest in virtual veterinarian

care for their customers, consider creating ecards, and go international.

We certainly have enjoyed learning more about a company that we all support and we
hope you do as well. Hopefully, we are able to continue following Chewy’s growth
and see if they agree with some of the recommendations we discussed.

The following slide contains all of our references.

If you have further questions or concerns, please feel free to reach out to us!
 References
About Us. (n.d.). Retrieved from https://www.chewy.com/app/content/about-us
Buxton. (n.d.). American & Canadian Consumers: Not As Similar As You Think. Retrieved from
https://www.buxtonco.com/blog/american-canadian-consumers-not-as-similar-as-you-think
Canadian Way of Life: Study in Canada. (n.d.). Retrieved from https://www.internationalstudent.com/study_canada/way_of_life/
Chewy Competitors. (2019). Retrieved from https://www.comparably.com/companies /chewy/competitors
Chewy - Org chart. (2020). Retrieved from https://theorg.com/org/chewy
Coulter, M. (2013). Strategic Management in Action (Sixth). Upper Saddle River, NJ: Pearson.
How to Take Your Company Global (2005) Retrieved from https://www.entrepreneur.com/article/159252
Gingiss, D (May 21, 2018). How Chewy.com Claws Its Way To The Top With Remarkable Experiences Retrieved from Forbes.
https://www.forbes.com/sites/dangingiss/2018/05/21/how-chewy-com-claws-its-way-to-the-top-with-remarkable-experiences/#4e3082f43520
James, M. (2018, February 15). Chewy.com A SWOT Analysis. Retrieved from https://www.case48.com/swot-case/33492-CHEWY-COM-A
Morrissey. S. (2017, February 26). Pet food retailer Chewy.com has seen fantastic growth. But can it keep up the pace? Retrieved February 3, 2020, from
https://www.miamiherald.com/news/business/biz-monday/article134938649.html
Rosenblum, P. (2018, February 26). Chewy Beats Amazon In The Online Pet Supply Business; Customer Service Is The Key. Retrieved from
https://www.forbes.com/sites/paularosenblum/2018/02/26/chewy-beats-amazon-in-the-online-pet-supply-business/#4d2909e97b02
Rover. (2019, May 2). Rover study shows 74% of Canadian pet owners factor their furry friends into financial decisions. Retrieved from
https://www.globenewswire.com/news-release/2019/05/02/1815331/0/en/Rover-study-shows-74-of-Canadian-pet-owners-factor-their-furry-friends-into-financial-decisions.h
tml
Tseng, A. (2020, January 11). Could Chewy Be A Millionaire-Maker Stock? Retrieved from The Motley Fool.
https://www.fool.com/investing/2020/01/11/could-chewy-be-a-millionaire-maker-stock.aspx.