Walgreens Company Analysis and Integration Strategy Essay

10861 Words Apr 4th, 2012 44 Pages
Analysis of Walgreens

By: Robert Antioho
Christopher Bennington
Andrew Graeff
Jordan Lenz
Jacob Wyand

Chapter 1: Company Background and Mission Chapter 1: Company Background and Mission Walgreen Co.

Introduction:
Walgreen Co. (Walgreens) and its subsidiaries operate a drugstore chain in the United States. “The Company provides its customers with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities across America” (Walgreen Company). The firm currently operates two mail-order facilities and has 7,752 retail drug stores located across all 50 US states, Guam, Puerto Rico, and the District of Columbia (Walgreens). Prescription drugs account
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Ethical Issues:
While Walgreens is exposed to all the general ethical conundrums of the business world, the highly regulated “Pharmacies and Drug Stores” industry does not give much room for them to act unethically.

Recent Events:
Placed within an industry being pressured by reimbursement rates, plagued by market saturation, and in constant fear of government legislation, Walgreens is trying to pursue new avenues to promote company growth. In order to promote market share growth in New York, Walgreens acquired the drugstore chain Duane Reade in 2010 (WAG to Acquire NY Institution Duane Reade, 2010). Walgreens also recently expanded their online presence in May of 2011 with the acquisition of drugstore.com (Walgreens Co.). While Walgreens also focuses on traditional organic store growth, these actions exemplify their large focus on promoting company growth through new avenues.
Along with the positive growth related developments, Walgreens is being faced with large industry pressures. Walgreens is currently in a public dispute with the PBM company Express Scripts. In a June 21, 2011 press release, Walgreens stated that “contract renewal negotiations with pharmacy benefit manager Express Scripts, Inc. (NASDAQ:ESRX) have been unsuccessful, and as a result