Drug Wars. Can Walgreen Co. survive?

Topics: Pharmacology, Pharmaceutical drug, Pharmacy Pages: 2 (634 words) Published: December 4, 2014
Assignment Unit 5 GADI
1. Using the material presented in the chapter, how would you explain Walgreen’s success story in the past? Do you think Walgreen can overcome the challenges discussed in this case? If so, how? Explain your answer. In the past, Walgreen Co. succeeded part due to the density of its store (as we see on the text “downtown San Francisco has 21 stores within a one-million radius”). They established many stores with a variety of products and easy accessibility for all their clients. However their greater sector is the drug market. I think it won’t be easy; it will be hard but possible to overcome the challenges. We see how competence (Wal-Mart, CVS…) is getting advantages on the pharmacy business, for example, testing 24-hour pharmacies and offering eye exams. But, I think Walgreen can still see this as an opportunity and compete with their rivals creating mail-order prescriptions through their local Walgreen´s and also offering their customers some offers or sales in order to keep capturing them to go into the store. So customers will have the chance of delivering or picking up their medicines. 2. If you were asked to analyze Walgreen’s capabilities, how would you go about conducting such a study? What kind of data would you obtain? Explain your answer.

Student responses will vary. The study may be conducted by obtaining the Walgreen’s annual report to see where the company feels they are and compare that with what the competitors are doing.

3. Describe Walgreen’s industry environment using Porter’s Five forces framework as discussed in this chapter. Threats of new entrants: low.
Although Walgreens and CVS are the giants in the retail pharmacy industry, there is still plenty of room for smaller competitors. In total, small independent pharmacies still comprise approximately 15 percent of the market. Given that many consumers choose their pharmacy based on locational convenience, however, the existence of these smaller local...
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