A Strategic Analysis of Walgreens and the Retail Drugstore Industry Es

Introduction Knowing the importance of a strategic vision, every company undertakes a complete analysis periodically. In order to create a strategic plan the parties involved must know every aspect of the industry and the company at hand. The purpose of this paper is to describe and analyze the retail drugstore industry and then focus on Walgreens, the industry leader in terms of sales. As part of the in-depth analysis of Walgreens, its major competitors will also be described and analyzed. The retail drugstore industry consists of all those stores that contain a pharmacy and sell prescription drugs. It also includes businesses that sell prescription drugs online and through the mail. Most retail drugstores also offer other consumer goods and services to augment the low margin earned on prescription sales. To be considered a member of the retail drugstore industry requires sales of prescription pharmaceuticals to the end consumer. Many convenience, food and discount stores sell over-the-c ounter medicines, but these stores would not be considered retail drugstores because they do not also sell prescription medicines. Relevant Environment Competition: The relevant environment, which consists or interactions between the task environment and task environment, has been changing over the past 25 years. As competition has increased among grocery, discount and mass merchandising chains, blurring of channels has occurred. This is due to stores selling an increasing variety of goods to try to broaden their customer base and provide â€Å"one-stop† shopping. Many of these stores have added pharmacies as a source of convenience for their customers, and to increase store traffic, usually positioning the pharmacy in the back of the store. In response to this pressure, both independent and chain drugstores have greatly increased the variety of their retail product offerings. The sale of cosmetics, along with health and beauty aids, has become an important profit generator for retail drugstores. Many are now also positioning themselves to compete with convenience stores by offering snack food items, beverages, and st aple items. The move to stand-alone stores located on major roads with ample, close-in parking has been an important factor contributing to convenience. Customers: As indicated by the type of competition seen in the retail drugstore ... ...Top Performing Companies.† March 24,1998. www.riteaid.com. â€Å"Rite Aid Reports 6.6 Percent Same-Store Sales Increase For May.† June 7,2000. www.walgreens.com/about/history/default.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist2.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist3.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist4.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist5.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist6.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist7.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/press/facts/fact2.jhtr, June 15, 2000. Walgreens/Company Overview. www.walgreens.com/about/press/othernews/040400.jhtr, June 15, 2000. Walgreens/Walgreens Joins Katie Couric in National Campaign. www.walgreens.com/about/press/othernews/051100b.jhtr, June 15, 2000. Walgreens/Walgreens Joins Katie Couric in National Campaign. A Strategic Analysis of Walgreens and the Retail Drugstore Industry Es Introduction Knowing the importance of a strategic vision, every company undertakes a complete analysis periodically. In order to create a strategic plan the parties involved must know every aspect of the industry and the company at hand. The purpose of this paper is to describe and analyze the retail drugstore industry and then focus on Walgreens, the industry leader in terms of sales. As part of the in-depth analysis of Walgreens, its major competitors will also be described and analyzed. The retail drugstore industry consists of all those stores that contain a pharmacy and sell prescription drugs. It also includes businesses that sell prescription drugs online and through the mail. Most retail drugstores also offer other consumer goods and services to augment the low margin earned on prescription sales. To be considered a member of the retail drugstore industry requires sales of prescription pharmaceuticals to the end consumer. Many convenience, food and discount stores sell over-the-c ounter medicines, but these stores would not be considered retail drugstores because they do not also sell prescription medicines. Relevant Environment Competition: The relevant environment, which consists or interactions between the task environment and task environment, has been changing over the past 25 years. As competition has increased among grocery, discount and mass merchandising chains, blurring of channels has occurred. This is due to stores selling an increasing variety of goods to try to broaden their customer base and provide â€Å"one-stop† shopping. Many of these stores have added pharmacies as a source of convenience for their customers, and to increase store traffic, usually positioning the pharmacy in the back of the store. In response to this pressure, both independent and chain drugstores have greatly increased the variety of their retail product offerings. The sale of cosmetics, along with health and beauty aids, has become an important profit generator for retail drugstores. Many are now also positioning themselves to compete with convenience stores by offering snack food items, beverages, and st aple items. The move to stand-alone stores located on major roads with ample, close-in parking has been an important factor contributing to convenience. Customers: As indicated by the type of competition seen in the retail drugstore ... ...Top Performing Companies.† March 24,1998. www.riteaid.com. â€Å"Rite Aid Reports 6.6 Percent Same-Store Sales Increase For May.† June 7,2000. www.walgreens.com/about/history/default.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist2.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist3.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist4.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist5.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist6.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/history/hist7.jhtr, June 15, 2000. Walgreens/Page Through Our Past. www.walgreens.com/about/press/facts/fact2.jhtr, June 15, 2000. Walgreens/Company Overview. www.walgreens.com/about/press/othernews/040400.jhtr, June 15, 2000. Walgreens/Walgreens Joins Katie Couric in National Campaign. www.walgreens.com/about/press/othernews/051100b.jhtr, June 15, 2000. Walgreens/Walgreens Joins Katie Couric in National Campaign.