Walgreens Analysis Essay

2212 Words Apr 1st, 2011 9 Pages
Vision statement analysis

To be “My Walgreens” for everyone in America — the first choice in health and daily living … owning the strategic territory of “well.”

Effective elements of the statement:
Graphic - the company’s vision clearly paints a picture of the company becoming the nation's top retail resource for pharmacy and health-and-wellness services and products.
Easy to communicate – the vision is easy understandable, has memorable slogan “My Walgreens for everyone in America”
Feasible – Walgreens already is drug retailing industry leader, so the statement is pretty reasonable and achievable.
Desirable – it is a desirable outcome for the company stakeholders. It will create more jobs, make shareholders richer and customers
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Force 4: Bargaining Power of Buyers - High
Walgreens is the largest national retail pharmacy chain and is considered the leader in innovative drugstore retailing. The bargaining power of buyers is determined by two factors: price sensitivity and relative bargaining power. Walgreens has several distinct divisions within a store that include a pharmacy, nonprescription drugs, and general merchandise. Because these products and services are undifferentiated for the most part, consumers are more sensitive to an increase in price. To combat this price sensitivity, every aspect of Walgreens’ competitive strategy is focused on convenience, technical innovation, and customer service, which has allowed the company to achieve financial success while improving the level of service. Since Walgreens holds a large percentage of the industry market share, they are able to help set the rules of competition but must be conscious of the consumers’ superior bargaining power due to the number of competitors.
Force 5: Bargaining Power of Suppliers – Overall High
Walgreens Company divides its sales into three distinct divisions: prescription drugs (65%), nonprescription drugs (10%), and general merchandise (25%). The general merchandise division is all the food, drink, seasonal, and cosmetic items that Walgreens carries.
Prescription drugs: Power of Suppliers: High
The bargaining power of prescription drug manufacturers is high because of the fact that only one drug