External and Internal Environment

Topics: Pharmacology, Food and Drug Administration, Prescription drug Pages: 5 (1678 words) Published: May 4, 2014
Walgreens in one of the largest drugstore chains in the United States. Walgreens has always maintained a simple strategy. Although the strategy changed over the years to mention newer innovations, the basic principles of the strategy have remained similar. It has become more than just your ordinary pharmacy it invest heavily in high tech store and distribution systems which drive service up and costs down, and offer an on-line drugstore web site totally integrated with other retail stores. Walgreens also have three Pharmacy Care Call Centers one in Alabama, Florida, and in Tuscan.

Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.

I believe that the two segments of the general environment that would rank highest in influence for Walgreens are the two segments, demographic and technological. If I were to be honest, I believe that all of these segments are important to the success of a drugstore, but because the question asked for which ones I considered being the highest I chose these two. Let me go into details to explain my reasoning for choosing these two.

The reason why I choose the demographic segment is because demographics play an important role in mostly every corporation. Marketers can use the variables that make up demographics to create a demo graphic profile, which helps provide them enough information to create a mental picture of who the typical members of society are. Once these profiles have been constructed, they can be used to develop a marketing plan and strategy. The five types of demographics that corporations focus on for their marketing are age, gender, income level, race, and ethnicity.

As humans, our bodies are prone to get sick every now and then, and when it does we most likely have to rely on taking medicine to get over the illness. It does not matter if it is over the counter or prescription medicine, we just need something to rid us of the illness. That is when we most likely turn to the drugstores to purchase our medication, such as Walgreens. However, while we are there to just go get our medicine, the store has much more merchandise to offer than just that. They have stuff that touch on almost every type of demographics, from: having merchandise for different ages, having products for each gender, cheaper brands of prescription medicine for their lower income customers, and much more. Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose. Evaluate how well the company has addressed these two (2) forces in the recent past. Of the five forces of competition, the intensity of existing rivals within the industry. The retail drug industry contains many companies, but the most notable are Wal-Mart, CVS, and Rite Aid. These are just a few of Walgreens’s competitors there are other stores like Kmart, Target, Publix and different grocery store pharmacy chains. Pharmaceuticals are a high demand industry, with fairly high margins. The margins are decreasing, and competition constantly adapts to changing approaches. Many competitors now choose to handle customer interaction on the web. Many people have started to do mail orders because it is cheaper for them. Also, insurance companies find it cheaper for the consumer to do mail orders then going into the actual store. The only thing is that some of the mail orders do not make it in time, which causes the consumer to still have to deal with an actual pharmacy. At Walgreens call center they have a mail order department that assist the consumer with mail orders. Walgreens have these call center to be able to assist more consumers then their competitors.

The second of the five forces that is the most significant for Walgreens would be the bargaining power of suppliers. The textbook...
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