Walgreens Co. Swot Analysis
Walgreens Company SWOT Analysis
Melanie Garces
MGT/521
July 16, 2012
Kirk Davis
Abstract
This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. The company’s decision to severe its relationship with Express Scripts, Inc. has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.
Walgreens Co. SWOT Analysis
Overview
Walgreens is the nation’s largest chain of pharmacy and food retailers and leads the chain drugstore industry in both sales and profit. It currently owns and operates 8,307 locations in the U.S., District of Columbia and Puerto Rico. In the fiscal year 2011, Walgreens’s sales were $72 billion, with earnings of $2.7 billion (a near 30% increase from FY2010).
The company’s mission is to be the most trusted convenient multichannel provider and advisor of innovative pharmacy, health and wellness solutions, and consumer goods and services in communities across America. (Walgreens Co., 2012) Over six million customers visit the stores on a daily basis and 819 million prescriptions were filled in fiscal 2011. With 247,000 employees
Melanie Garces
MGT/521
July 16, 2012
Kirk Davis
Abstract
This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. The company’s decision to severe its relationship with Express Scripts, Inc. has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.
Walgreens Co. SWOT Analysis
Overview
Walgreens is the nation’s largest chain of pharmacy and food retailers and leads the chain drugstore industry in both sales and profit. It currently owns and operates 8,307 locations in the U.S., District of Columbia and Puerto Rico. In the fiscal year 2011, Walgreens’s sales were $72 billion, with earnings of $2.7 billion (a near 30% increase from FY2010).
The company’s mission is to be the most trusted convenient multichannel provider and advisor of innovative pharmacy, health and wellness solutions, and consumer goods and services in communities across America. (Walgreens Co., 2012) Over six million customers visit the stores on a daily basis and 819 million prescriptions were filled in fiscal 2011. With 247,000 employees
References: E-prescription market headed to $204.6M. (2011, April 15). Retrieved from http://www.healthcareitnews.com Kavilanz, P Marketline. (2012, May). Walgreens Co. SWOT Analysis. Retrieved from http://web.ebscohost.comezproxy.apollolibrary.com Pinto, D Rannazzisi, J. T. (2007, May 16). DEA Congressional Testimony. Retrieved from http://www.justice.gov Ritter, I Walgreens Co.. (2012). Company Overview. Retrieved from http://news.Walgreens.com Walgreens Co. Walgreens Co.. (2012, March 5). General News. Retrieved from http://news.Walgreens.com Walgreens Co. Walgreens, ESI square off over contract renewal terms. (2012, April 23). Chain Drug Review, 34.8, 43. doi:GALE A287749543 Wasson, G