Pharmacy and Drugstore Industry

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TABLE OF CONTENTS 1TABLE OF FIGURES 2THE RETAIL DRUGSTORE INDUSTRY 3BUSINESS ACTIVITIES 7INDUSTRY OVERVIEW 7BACKGROUND 8MODERN DRUGSTORES 8CURRENT ORGANIZATION AND STRUCTURE 9CURRENT CONDITIONS 10FUTURE INDUSTRY PERFORMANCE 13HISTORY OF WALGREENS 16COMPETITIVE ANALYSIS 20RITE AID CORPORATION 20CVS CORPORATION 25DRUGSTORE.COM 29CUSTOMER PROFILE 32EXTERNAL OPPORTUNITY ANALYSIS 34EXTERNAL THREAT ANALYSIS 39SUMMARY OF EXTERNAL OPPORTUNITIES AND THREATS 41OPPORTUNITIES 41THREATS 42INTERNAL STRENGTH ANALYSIS 42FINANCIAL STRENGTH 43PRODUCT INNOVATION 44HISTORY 45GROWTH RATE OF STORES 46MANAGEMENT TEAM 48INTERNAL WEAKNESS ANALYSIS 48SUPPLY OF PHARMACISTS 48LACK OF EMPLOYEES 48LEGAL LIABILITY 49SUMMARY OF INTERNAL STRENGTHS AND WEAKNESSES 49STRENGTHS 49WEAKNESSES 50FINANCIAL ANALYSIS 50LIQUIDITY 51Inventory Turnover 51Current Ratio 53LONG-TERM DEBT-PAYING ABILITY 54Debt / Equity Ratio 55PROFITABILITY 56Net Profit Margin 56Return on Assets 57ANALYSIS OF THE MISSION STATEMENT 58ANALYSIS OF WALGREENS' OBJECTIVES 61STRATEGIC ALTERNATIVES 64GROWTH 65Advantages (growth concentration): 65Disadvantages (growth concentration): 66Advantages (growth diversification): 67Disadvantages (growth diversification): 68RETRENCHMENT 69STABILITY STRATEGY 70COMPETITIVE STRATEGIES 70DIFFERENTIATION 71FOCUS 71IMPLEMENTATION 72CONCLUSIONS 75BIBLIOGRAPHY 77APPENDIX 82Table of Figures FIGURE 1 - INVENTORY TURNOVER 52FIGURE 2 - CURRENT RATIO 53FIGURE 3 - DEBT / EQUITY RATIO 55FIGURE 4 - NET PROFIT MARGIN 57FIGURE 5 - RETURN ON ASSETS 58The Retail Drugstore Industry IntroductionKnowing the importance of a strategic vision, every company undertakes a completeanalysis periodically. In order to create a strategic plan the parties involved must knowevery aspect of the industry and the company at hand. The purpose of this paper is todescribe and analyze the retail drugstore industry and then focus on Walgreens, theindustry leader in terms of sales. As part of the in-depth analysis of Walgreens, itsmajor competitors will also be described and analyzed. The retail drugstore industryconsists of all those stores that contain a pharmacy and sell prescription drugs. It alsoincludes businesses that sell prescription drugs online and through the mail. Most retaildrugstores also offer other consumer goods and services to augment the low margin earnedon prescription sales. To be considered a member of the retail drugstore industryrequires sales of prescription pharmaceuticals to the end consumer. Many convenience,food and discount stores sell over-the-counter medicines, but these stores would not beconsidered retail drugstores because they do not also sell prescription medicines. Relevant Environment...
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