Walgreens Analysis
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 happier.
Shortcomings
Vague and incomplete – while describing a laudable objective, it provides no guidance for a developing strategy for management.
Five Forces Model
Force 1: Competitive Rivalry – High
Drug retailing industry is becoming saturated and therefore more competitive. Walgreen’s biggest rivals are CVS and RiteAid, but it also faces serious competition from mass merchants like Wal- Mart, Target and many other local supermarkets like Giant Eagle, Acme, etc. These retailers carry a broad assortment of merchandise and have a large customer base that visits the store regularly.
Competing based on customer service and conveniently located prime locations is a differentiation that Walgreens employs to avoid the competition from large supermarkets. However, in order to do this, they sacrifice lower prices.
To stay ahead in competition with its rivals the company keeps innovating their way of business and modifying the growth formula. First, it was digital photo services, RFIDs, touch tone prescription refills, online orders, health and wellness units. Now Walgreen’s management announced that it is cutting the pace of new-store growth and started improving efficiency and image of the existing ones.
By constantly
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 happier.
Shortcomings
Vague and incomplete – while describing a laudable objective, it provides no guidance for a developing strategy for management.
Five Forces Model
Force 1: Competitive Rivalry – High
Drug retailing industry is becoming saturated and therefore more competitive. Walgreen’s biggest rivals are CVS and RiteAid, but it also faces serious competition from mass merchants like Wal- Mart, Target and many other local supermarkets like Giant Eagle, Acme, etc. These retailers carry a broad assortment of merchandise and have a large customer base that visits the store regularly.
Competing based on customer service and conveniently located prime locations is a differentiation that Walgreens employs to avoid the competition from large supermarkets. However, in order to do this, they sacrifice lower prices.
To stay ahead in competition with its rivals the company keeps innovating their way of business and modifying the growth formula. First, it was digital photo services, RFIDs, touch tone prescription refills, online orders, health and wellness units. Now Walgreen’s management announced that it is cutting the pace of new-store growth and started improving efficiency and image of the existing ones.
By constantly