The research analyzes the case "Cat Fight in the Pet Food Industry" Parts A and B (Harvard Business School, 1991, pp. 113; Harvard Business School, 1992, p. 1). The results of this analysis are presented in (1) an industry analysis, (2) an assessment of company positioning, and (3) a consideration of the implications of the acquisition of the AndersonClayton firm.
Porter (1980, pp. 717) considers the conditions of entry in to an industry as one of the keys to both the structure of the industry and the character of competition within the industry. Economy of scale is one of the major barriers to industry entry identified by Porter (1980, p. 7). Economy of scale was a major barrier to new entrants to the pet food industry at the time of this casethe mid1980s. Thus, competition within the industry could be expected to be directed toward product differentiation and participation in multiple lines within the industry, as opposed to the countering of potential threats from new competitors.
Porter (1980, p. 17) pointed out that rivalry among existing competitors can become intense, as each competitor attempts to improve industry position through the use of price competition, advertising, product introductions, and increased customer service. In the pet food industry in the mid1980s, price competition, advertising, and product introductions were widely used by most of the industry competitors in attempts to improve industry position. The conduct of strategic planning by profitoriented organizations is essential for the longterm viability of such organizations in the contemporary economic environment. There are a variety of approaches to the development of business strategy. Two strategy topologies of particular interest are those of Robert Miles and Charles Snow (1978, pp. 5576) and Michael Porter (1980, pp. 3541).
Miles and Snow (1978, pp. 5576) envisioned the development of business strategy...