Providing some analysis of the case and its relationship to one or more concepts presented

The text:

Innovative Services Are the Growth and Profit Engines for PetSmart1

Innovative services continue their strong growth trajectory for the leading U.S. pet retailer, PetSmart. With more than 1,400 pet stores in the United States, Canada, and Puerto Rico and an annual revenue in 2015 of $7.1 billion, PetSmart's vision is to serve "pet parents" through "total lifetime care" of their pets. Pet parents are those people whose furry friends are more like children than pets and who are often willing to sacrifice their own needs before they will sacrifice products or services for their pets.

PetSmart views total lifetime care as the provision of products and services to support pets from cradle to grave. Although sales of pet food, toys, and pet accessories are part of this vision, total lifetime care means much more. The company also promotes comprehensive pet training, grooming, day care, and overnight care through its pet hotels. PetSmart PetsHotels not only ensure onsite pet safety and health 24 hours a day but also promote professional care and a total "pet experience." The experience includes group play time, during which pets can socialize with each other; eat special snacks and treats; and a "bone booth," where pet parents can call in and speak to their pet. Pet parents are offered a choice of accommodations for their pet, ranging from a glassed-in "atrium room" to a suite including a television tuned to animal channels. Other add-on services include personal training camps for dogs during their stay at the hotel, special snacks, and an exit bath. Through its grooming services, PetSmart offers a variety of grooming packages, including bathing, fur trimming and brushing, nail and teeth care, and other specialty services. All of its grooming services carry the "Looks Great Guarantee," that offers money back if pet parents are not pleased with how their pet looks following its appointment.

Innovative services were not always part of PetSmart's offerings to the market. In fact, in the late 1990s, PetSmart was known as PetsMartemphasis on "Mart"and was a "big box," warehouse-style retail chain that focused almost exclusively on selling food, toys, and other traditional pet products. The margins on its products were very slim, Walmart was invading its traditional product categories, and a brief experiment with online retail offerings did not solve the dilemma of shrinking profitability. In the 2000s the move to services, coupled with a focus on operational efficiencies in its traditional retail arena, saved the company. Services have been PetSmart's significant growth and profit engines ever since, and the transition to these innovative services is very consistent with the company's long-term vision and commitment to pets and animals. This commitment is reflected in PetSmart Charities, an independent non-profit organization devoted to animal welfare and pet adoptions.

For PetSmart, the move to services was bold and required investments in store redesign to accommodate the grooming and hotel areas. These areas needed more space, different layouts, and distinct styles compared to traditional store designs. The move into services also required investments in hiring and training of different types of employees who could interact effectively with pets and pet parents in intimate service settings. For example, when the company moved into grooming in a big way, it realized there were not enough high-quality, trained groomers available to support the new strategy. So the company developed its own 12-week, 400-hour training and certification program for its groomers. The store redesign and groomer training initiatives are indicative of the types of design, human resource, and integration challenges many firms face when they move into the world of service.