Case Study Walgreens

Walgreen’s is known to be one of the most well-known U.S. retail drugstores around the world but in1961 their leading competitor came to town, CVS (originally called Consumer Value Store). Today both companies compete not only with each other but with grocery stores, mail-order pharmacies and big box retailers such as Wal-Mart and Target.

One of the worst side effects of the drug war has been the extreme violence that inevitably comes with illegal drugs. Because they are illegal, sellers can put any price on their product that they want, and addicts will often pay whatever it takes to get their next fix. This makes the illegal drugs highly profitable. According to Norm Stamper, a retired Seattle police chief, a pound of marijuana costs about $75 to produce, and sells for around $6,000 depending on quality. Because of the potential profit, gangs will fight over control of certain areas that will make them more money. Normal businesses will compete with each other by making a better product, but drug gangs don’t operate on the same level. They will resort to violence to ensure that their product is the one that people are buying, and not their competition’s. We as a nation should have learned from the notorious Prohibition era that banning substances just does not work. The prohibition of alcohol gave rise to organized crime gangs like the Mafia. The untaxed alcohol was a money making machine, much like the drug trade today. The Mafia wasn’t renowned for their kindness, and would kill to keep their position as a trafficking giant. Once the 21st Amendment repealed Prohibition, thousands of jobs were created in the alcohol industry, and millions of dollars

The war on drugs was started by President Nixon back in the 1970’s is still ongoing this day. The drug war the United States is fighting is against the The Zetas, Sinaloa Cartel, Juarez Cartel and many others. The drug war is primarily focused on the people and not the actual drug itself. The drug war will never end at the rate it is currently going because the ones that are being targeted are the poor and not the main money makers. (White, 2007)This war on drugs is very involved and does not only focus on the drug lords but focuses on the supporters. It also focuses on the users and the American prison system to include corrupt law enforcement and correctional facility employees and money.

Walgreens has grown from a small, neighborhood-oriented drug store to a trusted, national pharmacy. Founded in 1901 by Charles R. Walgreen, the company bloomed from a commitment made to perseverance. Walgreen came from Dixon, Illinois at the age of sixteen, working an unpleasant job at a drug store after he lost a portion of a finger that left him incapable of continuing a career in athletics. He left with an ambition of entrepreneurship as the flourishing city of Chicago welcomed him with the booming pharmacy business. Devoted to his goal, Walgreen worked his way through gaining experience and financial stability within the growing

Even though Walgreens is still only the second-largest health and wellness provider in America, behind CVS, the company is still very successful with over 8,300 stores that span across America, the Virgin Islands, and Puerto Rico. From 1906 when the drug store first opened it has come a long way, in 2009 they reached every state in America. They also became an investor when they spent 6.7 billion dollars for a 45% stake in the company Alliance, which was a boot company. Later on, in their investing career, they purchased a rival drugstore company Rite-Aid, a deal that was valued at 9.4 billion dollars. Owning this rival can be very helpful because they really can narrow down the customer’s choice of drugstore, almost like a monopoly. Overall

During this same year, Rite Aid gained pharmacy benefits manager PCS Health Systems. In 2007, Rite Aid merged with with Brooks Eckerd Pharmacy and added over 1,500 stores. In 2015, it obtained pharmacy benefits manager Envision Pharmaceutical Services for around two billion dollars.

Walgreens is also mainly funded by store sales so the company sees long-term potential for about 13,000 U.S. stores. Additionally, the company long-term-expansion strategies are entering new markets, and improving customer service, investing heavily in technology enhancements that improve pharmacy efficiency and reduce costs.

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

Walgreens is the more established and older of the two companies. It was founded in 1901 and until recently it added stores from mostly internal organic growth. CVS is the newer company and started in 1963. The majority of growth at CVS has come from acquisitions of other companies like Revco, Arbor Drug, Eckerd and more recently Sav-On and Osco

Strengths. As of 2008, Walgreen operated 6,934 stores in the U.S. and U.S. held territories, making it the largest retail chain pharmacy in North America (DataMonitor, 2010, p. 22). Walgreen’s recent acquisition of Duane-Reade, a prominent

CVS Pharmacy is the retail division of CVS Caremark. It is also one of the largest Pharmacy Retail Chains in the country and operates more than 7,400 stores domestically. Although the retail pharmaceutical division of this corporation accounts for a significant amount of this company’s success, CVS Caremark focuses more on its corporate strategy to compete with other industry rivals such as Walgreens and Rite Aid. Considering CVS Caremark is the result of the 2007 merger of CVS and Caremark Rx, this analysis will begin with a brief history and the merger of these corporations, its current performance, strategic posture, and the strategic managers of this organization.

CVS, Wal-Mart, Medco Health and Rite Aid are Walgreens’ major competitors. Wal-Mart aggressively competes by its use of the $4 generic prescriptions promotion. CVS employs a similar strategy by offering a 90-day supply of generic medications for $9.99. Medco Health also competes with CVS by offering a 90-day supply of medications for a cheaper price than a customer would pay in-store. As of 2008, Walgreens and its major competitors were measured as follows10:

Big chain pharmacies are buying a lot of independent pharmacies. What happens when a big chain pharmacy buys an independent pharmacy? What would happen with the current employees that were working in the independent pharmacy after the buyout? Would they be offered to work in the big chain pharmacy, or be forced to leave with no job?

In 2012, Walgreens, the giant USA drug company invested 4.3 billion in cash and shares to a acquire a 45% stake in Alliance Boots and as a result it became a subsidiary of the new company Walgreens Boots Alliance where they sell medicine, beauty products, health, optician and hearing services to the public.

really known for anything nor does it stand out to the corner store next door so Walgreens’s main business if off the drug market. Finally, Wawa’s final convenience store competitor is Rite Aid. Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Cumberland County, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. An offer was presented by Walgreens Boots Alliance in October 2015. Rite Aid accepted the offer and is currently pending government antitrust committee approval. If approved Walgreens would form the world 's largest retail pharmacy chain in terms of number of locations. Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrift D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid reported total sales of US$ 25.5 billion in fiscal year 2014. In 2008, its market capitalization dropped to