Dogvacay’s more attractive for pet owners. Amongst this, there

Dogvacay’s
Competition

It has
become clear that digital firms form serious competition threats for incumbent,
traditional firms. But it is difficult to determine how exactly, and to what
extent the emerge of DogVacay has influenced the kennel market. In order to be
able to compare both businesses, we must look into some basic numbers regarding
users and revenues. Comparing these businesses is very difficult, since
DogVacay operates in almost every city in the U.S.A, and kennels operate individually.
 Little information regarding the
revenues of DogVacay and its owner Rover.com is available. Rover operates
through both funding and the shares of revenue it receives from the pet
sitters. Last year the company collected a total of approximately $105 million
in venture capital. This money will be used for international expansion, new
and improved services for users, and marketing efforts. According to King
(2017), Rover expects a 200% increase in net revenues for 2018 since it has
over 140,000 active per sitters across the U.S.A and a booking rate of one
every four seconds.

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            Kennels
have not been quite as successful the last few years. Baffuto (2017) states
that the revenues of kennels are significantly declining. There is no exact
number, but it has resulted in the shut down on dozens of kennels in the last three
years. In addition, kennels are not only financially behind, reputation-wise
they are not doing very well either. A study by Denham, Bradshaw & Rooney
(2011) concluded that kennels have negative effects on pets’ health. Kennels
can cause pets to suffer from extreme stress and even temporary mental illness.
This causes that a pet sitter via DogVacay is often more attractive for pet
owners.

            Amongst
this, there are additional reasons for DogVacay’s success. Firstly, as stated
earlier, DogVacay charges lower prices, due to a significant difference in
transaction costs. Secondly, the supply of DogVacay’s pet sitters exceeds the
supply of available places in kennels, which causes that it is often more
convenient to bring your pet to a pet sitter rather than a kennel.
            Thus,
we can conclude that DogVacay’s aim to disrupt the kennel business has been
successful, and that it has taken a significant market share from kennels. If
this disruption continues as it has in the previous years, it is likely that
DogVacay will eventually take over the entire market, leading to a
disappearance of kennels. However, this is still provisional. It is of course
uncertain how kennels will respond and fight back in the upcoming years. Also,
as stated earlier, there is a lot of uncertainty regarding the regulation of
digital platforms like DogVacay. It could be that certain regulations can cause
difficulties for DogVacay, and that they will have to adjust to these
regulations. 

Dogvacay’s
Competition

It has
become clear that digital firms form serious competition threats for incumbent,
traditional firms. But it is difficult to determine how exactly, and to what
extent the emerge of DogVacay has influenced the kennel market. In order to be
able to compare both businesses, we must look into some basic numbers regarding
users and revenues. Comparing these businesses is very difficult, since
DogVacay operates in almost every city in the U.S.A, and kennels operate individually.
 Little information regarding the
revenues of DogVacay and its owner Rover.com is available. Rover operates
through both funding and the shares of revenue it receives from the pet
sitters. Last year the company collected a total of approximately $105 million
in venture capital. This money will be used for international expansion, new
and improved services for users, and marketing efforts. According to King
(2017), Rover expects a 200% increase in net revenues for 2018 since it has
over 140,000 active per sitters across the U.S.A and a booking rate of one
every four seconds.

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For You For Only $13.90/page!


order now

            Kennels
have not been quite as successful the last few years. Baffuto (2017) states
that the revenues of kennels are significantly declining. There is no exact
number, but it has resulted in the shut down on dozens of kennels in the last three
years. In addition, kennels are not only financially behind, reputation-wise
they are not doing very well either. A study by Denham, Bradshaw & Rooney
(2011) concluded that kennels have negative effects on pets’ health. Kennels
can cause pets to suffer from extreme stress and even temporary mental illness.
This causes that a pet sitter via DogVacay is often more attractive for pet
owners.

            Amongst
this, there are additional reasons for DogVacay’s success. Firstly, as stated
earlier, DogVacay charges lower prices, due to a significant difference in
transaction costs. Secondly, the supply of DogVacay’s pet sitters exceeds the
supply of available places in kennels, which causes that it is often more
convenient to bring your pet to a pet sitter rather than a kennel.
            Thus,
we can conclude that DogVacay’s aim to disrupt the kennel business has been
successful, and that it has taken a significant market share from kennels. If
this disruption continues as it has in the previous years, it is likely that
DogVacay will eventually take over the entire market, leading to a
disappearance of kennels. However, this is still provisional. It is of course
uncertain how kennels will respond and fight back in the upcoming years. Also,
as stated earlier, there is a lot of uncertainty regarding the regulation of
digital platforms like DogVacay. It could be that certain regulations can cause
difficulties for DogVacay, and that they will have to adjust to these
regulations. 

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