Monday, August 29, 2016

Wild Cat OurPet’s Company (OPCO) is No Dog

OurPet’s Company (OTCQX: OPCO) may serve both cats and dogs with its innovative range of pet care solutions. However, the company itself is most definitely not a dog, as defined in the Boston Consulting Group’s (BCG) Growth Share Matrix. Rather, it’s a wild cat that has been churning out a string of ingenious pet care products. If OurPet’s Company keeps up its wild ways, there is the distinct possibility it may morph into a star.

Back in the early 1970s, BCG developed the Growth-Share Matrix as a portfolio-planning tool. BCG assessed each business unit within a company’s portfolio, taking into account two determinants of profitability: market growth and market share relative to the largest competitor. Market growth gives some indication of the unit’s future prospects while relative market share is a sign of competitive advantage. Mapping a business unit to a cell in the matrix thus helps determine whether the unit would be a net user or contributor of cash and whether the portfolio decision should be develop, maintain or dispose.
                                
The Growth-Share Matrix classified business units into four types: dogs, cash cows, stars, and question marks or wild cats. Dogs neither generate nor consume a large amount of cash since they have low market share and a low growth rate. Cash cows are net contributors of cash. They are typically leaders in a mature market, providing a return on assets that is greater than the market growth rate. Stars generate a lot of cash but tend to use it all up because of their high growth rate. Wild cats are businesses that are growing rapidly and so require large cash infusions.

There is every indication that OurPet’s Company is a wild cat on its way to become a star. The company has been growing at an annually compounded rate of over 6% – twice the industry rate. Focusing on high-growth categories in the pet care industry, OurPet’s Company’s very first product was the Big Dog Feeder® in the $100 million per annum healthy feeding and storage systems segment. This product line now extends over 81 SKUs that include the Store-N-Feed® Single Adjustable Feeder, the SmartLinkTM Feeder – Intelligent Pet Bowl and the SmartLinkTM Waterer – Intelligent Water Fountain.

OurPet’s Company is also in the $250 million a year feline waste and odor control market with its OurPets® Skoop-N-Pak, OurPets® Pick-Up Bags and its ground-breaking OurPets® Switchgrass Natural Cat Litter with Biochar. And the company is tackling the $1 billion a year segment of interactive cat and dog toys and accessories with a host of clever products. This product line uses Blue Tooth and Wi-Fi communication technologies so our beloved pets can “talk” to us; the line includes the amazing OurPets® Catty Whack® and the Intelligent Pet Care® line of products.

OurPet’s Company has a robust pipeline of some 160 patents issued and or pending. It also has a strong diversified product portfolio of about 1,000 SKUs. The company is particularly focused on finding solutions to the pathologies that accompany aging in pets. It deserves a star for that.

For more information, visit the company’s website at www.ourpets.com.

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