Founded in 1901, Walgreens had revenues of $63.3 billion in fiscal 2009. As of Aug. 31 2009, the company operated 6,997 drugstores in 50 states, DC, and Puerto Rico versus 6,443 a year ago. In fiscal 2009 Walgreens added 544 new drugstores, including 70 by acquision, acquisition? growing by 8.6%. The company is principally in the retail drugstore business and its operations are within one reportable business segment. (Walgreens 2009) Strengths
The successful implementation of technology in both the store and supply chain is a real strength for the Walgreens Company. They have successfully implemented the use of radio frequency identification (RFID) throughout its chain of stores. RFID allows Walgreens to monitor the impact of sales from specific displays. Wow! It provides Walgreens with the tools to maximize both its efficiency and profits. (Wilson 2006)
Walgreens also offers the service of in-store medical clinics. These in-store clinics are conveniently located across from the Walgreens pharmacy offering customers a diagnoses and treatment inside the store. These services allow Walgreens to promote a strong brand image of both service and personal attention within the healthcare industry. (Walgreens 2010)
Walgreens is a pioneer of energy conservation among retailers; in 2006 they installed solar panels on 96 stores and two distribution centers in California, and 16 New Jersey locations (Walgreens 2010). This is a new paragraphWalgreens’ biggest strength is their knowledge of their customers. For instance, they know that their customer prioritize convenience; therefore they implement a saturation style store expansion plan to insure that customers are close to a Walgreens, because if not, they won’t shop there. By initiating programs such as their Rx Savings Advisor Walgreens has enhanced its focus on the aging population. This particular program is a tool whereby Medicare customers can identify the most compatible Part D prescription plan within their particular region. The Dial-a-Pharmacy” program allows customers to speak with a pharmacist in one of fourteen languages thereby tailoring its service to reach a broad client base in a very personal way. In 2006, Walgreens started to offer its customers prescriptions that are not regularly available in the average neighborhood pharmacy. And now they are offering prescription delivery. (Walgreens 2006) Oops….too much space here.
Walgreens grows organically rather than through acquisition. The acquisition of Eckerd, Osco and Save-on stores has given CVS a strong foothold in key regions such as Florida, Arizona and California. Didn’t you just state that Walgreens does not grow through acquisition? Yes, they have acquired Eckerd, Osco, and Save-on? I’m confused. These are favorite areas for retirees to settle. Walgreens spends its resources building its stores from the ground up. (Bhatt 2009)
The number of pharmacies in the United States is ever increasing. CVS is the nations’ leader with more than 7000 stores as of 2010 in 41 states whereas Walgreens has about 7000 stores in 50 states and Puerto Rico.( Wikipedia 2010). The ever increasing number of pharmacies offered in super-centers and grocery stores has expanded the market even more, such as Wal-Mart. With the increase of these stores and each company positioned to add even more stores, Walgreens, along with the others, run the risk of cannibalizing their market. They run the risk of going into markets that can’t sustain any more pharmacies.
Furthermore, Walgreens has the same problem as many other retailers: impolite sales people. For the most part, retail employees have little knowledge of the products in their store, or if they do know, they’re usually too preoccupied with their tasks to help the customer.How do you know this? Personal experience (a dangerous claim) or is this based on research? If you are going to state this in a paper….make sure to back-up your claim! Too much...