A Swot Analysis of Walgreens in the Competitive Pharmacy Marketplace

3555 Words Jan 31st, 2011 15 Pages
A SWOT Analysis of Walgreens in the Competitive Pharmacy Marketplace

Katy Mullis

Table of Contents
Page Contact Information .............................................................................................................3 I. Walgreens Overview ........................................................................................................4 II. Strengths..........................................................................................................................5 III. Weaknesses ....................................................................................................................7 IV. Opportunities
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Along with the company's strong market performance, the Walgreens Corporation continually shows considerable growth. 2006 ended with Walgreens' 32nd consecutive year of record sales and earnings ("Walgreen Co. reports..., 2006). Walgreens' 2005 sales of $47.4 were a 12.5% increase over the previous year and over $1.5 billion in earnings were a 15.5% increase over the previous year (Walgreens Corporation, 2006a). Furthermore, a new Walgreens store opens approximately every 19 hours (Carpenter, 2004). Consequently, the Walgreens name carries considerable brand equity as a nationwide retailer known for quality and convenience. In fact, Walgreens has positioned itself as the drugstore offering the most convenience (Walgreens Corporation, 2006c). As such, Walgreens offers drive-thru pharmacies in over 80% of its stores, and nearly 30% of stores are open 24 hours a day (Walgreens Corporation, 2006a). The company strives to offer a merchandise mix in line with this focus, providing customers with one-stop stopping for not only prescription drugs,

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but also over-the-counter-drugs, health care products, grocery selections, gifts, holiday and seasonal items, and one-hour photo developing (Biesada, 2006b). Walgreens is also known for its superior locations. Following an organic growth strategy has allowed the company to carefully select the locations where it opens new stores
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