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purchased by Petsmart, a bricks-and-mortar retailer, for $3.35 billion. It was, at
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it had lost almost $340 billion. Its first step was to establish Chewy Health, a
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Practice Hub, a complete e-
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characterizes Practice Hub
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within Chewy Health. Using
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worked closely with a team of veterinarians in developing Practice Hub, with the
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20 percent compared to the amount it lost in 2020. As with many other sectors of the
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lysts believe that Chewy is undervalued, pointing in part to Chewy Healthcare and its
new Practice Hub and noting that these parts of the company provide new opportuni
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Lamare, “If You Own a Pet You’ve Heard of Chewy—Here’s Why Ryan Cohen and Michael Day Succeeded
Where Pets.com Failed,” Businessofbusiness.com, November 17, 2021; Brendan Meyer, “How Collaborating
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Launches Innovative Marketplace Service for Veterinarians to Grow Clinic Revenues, Streamline Shopping
Experience,” Businesswire.com, September 15, 2021; Mary Hansbury, “The Cofounder of Chewy Explains
How He Created a $10.2 Billion Empire Selling Pet Food to Millennials Who Treat Their Animals Like Their
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Here are some questions to think about: What people, organization, and technol
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desktop computers has become ubiquitous. In 2022, an estimated 240 million peo
ple in the United States (about 85 percent of the US population) will shop online,
and 215 million will purchase something online, as will more than 2.5 billion people
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Business
Challenges
• Design strategy • Competition in B2C

• Design business People pet products business
and revenue model
• Establish new
healthcare business Information Business
Organization System Solutions
• Expand into B2B
e-commerce
Chewy Health • Generate revenue
• Chewy Pharmacy • Increase profits
• Online pharmacy • Obtain new customers
website • Connect with a Vet
• Telehealth platform Technology • Practice Hub
• Mobile app for
veterinarians
• Integrated e-commerce
solution for veterinarians
• Leverage existing Chewy
digital infrastructure
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services ($1.05 trillion) and travel (about $225 billion) will total about $1.3 trillion.
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to grow by around 9 percent annually between 2023 and 2026 (compared with 4 percent
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market that takes place in physical stores. However, e-commerce has expanded from the
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vices. Retail m-commerce now accounts for about two-thirds of total retail e-commerce
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year in the 12 to 15 percent range. In comparison, offline retail sales have been in
creasing in the range of just 2 to 4 percent.
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Revenue (billions)
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600
400
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1997
1999
2001
2003
2005
2007
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2015
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2021
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2025
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B2C retail e-commerce revenues grew 15–25 percent per year until the recession of 2008–2009, when they slowed
measurably. From 2022 through 2025, e-commerce revenues are expected to grow an estimated 12 percent.
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participate in these conversations. Social marketing means all things social—listening,
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Price per
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(see Chapters 5 and 9)
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and about 70 percent of Facebook users say they visit it daily, including around half
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number of consumers with popular, hit products, whether music, Hollywood movies,
books, or cars. In contrast, the Internet allows marketers to find potential customers
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additional value through a better understanding of the shopper. Examine Figure
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real-time bidding (RTB) platforms, where marketers bid in an automated environ
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step through an online
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store determine which sizes and colors are most popular. If the visitor customer behavior at a
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same or a different vendor. clothing, for example,
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might learn at each
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process. Such behavior might signal that the website was not
well designed.
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3HUVR DOL DWLR User Website
Firms can create unique,
personalized web pages
that display content or ads
for products or services of Based on your portfolio
special interest to individual and recent market trends, here are
users, improving the some recommendations.
customer experience and
creating additional value.
Welcome back, Alanna Retozo
Check out these recommended
titles: One Minute Manager
Leading Change
Results-Based Leadership
Tarik,
Here are the items you want
to bid on: Halogen reading lamp
Portable reading lamp
LED book reading lamp
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the pages shoppers visited—the estimated demographics of visitors, or on so-called
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However, in recent years, exchanges have experienced a resurgence.
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tail m-commerce was expected to generate about $3.6 trillion in revenues, which is
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of about 10 percent per year between 2022 and 2025, when it is estimated to reach
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up an estimated $425 billion in ad revenue worldwide in 2022. Google is the world’s
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activities associated with
Internal lists Newsletters
each.
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Gramlich, John. “10 Facts About Americans and Facebook.” Pew Research Center (June 1, 2021).
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