Swot Analysis Of Walgreens

CVS is a company that has been around for over fifty years and focuses on filling the needs of an older population looking to get their medication and other essentials all in a one-stop shop. A very similar business in this niche is Walgreens. Through evaluation of both sets of financial statements from each company, the investor can make a better educated decision on whether or not to invest in stock at CVS.

Walgreens’ principal activity is to operate a chain of retail drugstores that sells prescription and nonprescription drugs. The company also carries additional product lines like general merchandise including cosmetics, food, beverages and photofinishing. Walgreens is one of the fastest growing retailers in the United States and led the chain drugstore industry in retail sales and profits last year.

Johnson Guo, Neil Qiu, Vincent Zheng Professor Mark Carpentieri COM2020-ETRB 18 April 2024 Company Performance Report for Walgreens Boots Alliance Inc. (NASDAQ: WBA) Introduction: The drugstore industry is still feeling the effects of the pandemic, causing uncertainty for businesses like Walgreens. Walgreens is one of the largest retail pharmacy chains in the United States with over 85,000 locations. Nearly 3/4 of Americans live within 5 miles of a Walgreens. Despite being a popular spot for vaccines, Walgreens is having a hard time getting back on track.

From the beginning, Walgreens has yielded a better gross profit by an average of 8% over CVS/Pharmacy. Gross profit is the amount left over after cost of goods sold is taken from revenue. Although, both have been steady with their percentage gross profit, CVS/Pharmacy 21% & Walgreens 28%, Walgreens has gained more.

At present Walgreens appears to be operating in a Horizontal Integration strategy demonstrated through its merger with Boots Alliance and a reported inquiry to purchase Rite-Aid. (Nichols, 2015) Market Penetration is another strategy which Walgreens is presently operating within. Their change in strategy to focus on the customer and improve customer service and relationships is one strategy that is being used to penetrate a market with vast competition that needs a differentiator to remain on top.

Walgreens differentiates itself with a net income margin of 3.76% vs. CVS Caremark 3.23%. The difference was primarily due to interest cost and depreciation & amortization expenses. Walgreens interest cost and depreciation & amortization was $0.071 billion and $1.028 billion as compared to CVS Caremark which was $0.584 and 1.568 billion. This reflects an increase in Walgreens net income.

the benefits of a multichannel strategy” (p. 13). Walgreen’s image is about creating value and making shopping either for consumer goods or prescription drugs more convenient.

According to CVS pharmacy they now offer more than 1,100 Minute Clinic locations inside CVS Pharmacy and Target stores in 33 states. We have expanded services to include diagnosis and treatment of minor illnesses, injuries and skin conditions; administration of vaccinations, injections, health screenings and physicals; and monitoring for chronic conditions.

Although arch rivals Walgreen Co. in terms of overall revenues is the leader, rival competitors in the industry, CVS Corporation in particular, is the largest drugstore chain in the United States in terms of stores and number of prescriptions filled. CVS operates more than 4,100 stores in 27 states throughout the nation. Nearly 10 percent of all prescriptions filled in the United States are handed by CVS pharmacies. While CVS Corporation market capital in sales top at 22.3 billion dollars at the end of the last quarter, it was no comparison to the pharmacy industry leader, Walgreen’s, who topped at 43.4 billion in sales.

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

The competitive prices, countless discount opportunities, and friendly employees keep customers loyal to Walgreens even if they are not making frequent visits to the pharmacy department. This paper seeks to analyze the different components of the drug store industry and the aspects of the marketing strategy of the Walgreens Company that have kept it a strong competitor for so many years.

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:

Walgreens has attempted to build satisfaction, value, and loyalty for their customers by remembering that loyal customers are at the heart of their business, and thus rely on a customer-on-top business model. To do this, Walgreens has learned the talent of listening and responding to their customers in the following ways: (1) to respond to the busy lives of their customers, Walgreens allowed them to fill prescriptions at different stores and offered them the drive-thru pharmacy; (2) customers who spoke other languages complained about the labels, and Walgreens responded by printing labels in more than 10 different languages; and (3) when customers with eyesight problems could not read the labels, Walgreens offered printed labels with larger font sizes so that customers could more easily read the bigger text (Berenbaum, n.d., para. 19).

a. As I mentioned in question 2, Walgreens definitely has its strategic intent to stretch targets that go beyond corporate vision propelling the firm to win. For example, according to the combination between Walgreens and Boots Alliance. The company derives a new innovation, which is named Walgreens Boots Alliance. It is a significant achievement that associate with two prominent corporations with unique brands, sufficient geographic footprints, shared values and a sustainability of specialized health care services through community pharmacy care. Because of this cooperation, the company can create a new multinational leader in pharmacy-led health, as well as promoting global health and beauty brands. This movement accomplishes 1+1>2 method, which means when Walgreens and Boots Alliance establishing their mutual goals and sharing their strategies can create a higher value for both of them. Walgreens Boots Alliance will face the global market to provide many high quality health and wellbeing products, and will become the biggest purchaser of prescription drugs in the world. Walgreens also distributes the elite teams to evaluate the internal operation of Walgreens Boots Alliance. As Gary Hamel and Prahalad demonstrate in their article, says: “Growth depends more on the inventive capacity of individuals and small teams than on the ability of top management to aggregate the efforts of multiple teams toward an ambitious strategic intent.” These teams are also grouped for

The chart in Table 2 shows the edge Walgreens maintains over CVS and how that edge has been maintained with time.