Walgreens Future Trends Essay

1832 WordsNov 21, 20098 Pages
Walgreens’ Future Market Trends Market Structure Walgreens Pharmacy operates in an Oligopoly market structure. The retail pharmacy environment also has the Oligopoly characteristic of significant entry barriers. The barriers are restriction of ownership and restriction of where the business can be established (Walgreens). The ownership barriers are established by the government and state only Pharmacists or an incorporated company that has directors and shareholder members that are registered pharmacists are allowed to open and own a pharmacy. Licensed pharmacists are required to be on duty during the hours of operations. Current Economic Trends Walgreens faces many challenges. In the face of a slowing economy families are making…show more content…
Many other drugs also lose patent protection leading to the creation of substitutes that are cheaper. People today depend a great deal on online services to acquire information and products. Services like on online photo benefit Walgreens because people pick up their photos at the store. When people go to the store they will be more tempted to buy goods sold at Walgreens. Keeping up with online trends is very important and crucial to the success of the company. According to Mullis (2006) “In order to further focus on convenience and maintain its number one market position, Walgreens must also concentrate on expanding its online services. Online services add convenience and contribute to Walgreens’ brand image while allowing the company to achieve 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. Finally, changes in government programs such as Medicaid, social security, and others will bring changes to the prescription drug industry. Health insurance and those changes that the industry might go through if the health reformed is passed by congress will also have a major impact on Walgreens and how products are priced. Price Elasticity of Demand Walgreens offers a variety of products and services. Based on the economic times, price increases due to increase in wages,

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