Opportunities The next part of the analysis is opportunities, which looks at the current state of the market and the current trends. It is to assess what steps the company can take to increase sales. Rite Aid can increase their sales by having more sales and promotions. It is important to note that the sales and promotions would need to be based on each area in order to be profitable. What is needed and important to those on the East Coast is different than what is needed and important to those on the West Coast. They can also increase their loyalty program to entice their existing customers and potential customers to purchase from them. Another avenue that would be beneficial to pursue would be investing in their advertising …show more content…
They need to have the focus on succeeding in England and make sure they have done their research prior to expanding. Rite Aid needs to concentrate on their supply chain, the prices they are paying and charging for products, so they can stay competitive. They also need to provide exceptional customer service to their customers, which is currently one of their core competencies. The other core competency is that they offer various healthcare within their pharmacy for their customers convenience and health. They are also committed to their …show more content…
They acquired Gray Drug in 1987 and then proceeded to acquire Read’s Drug Store, Lane Drug, Hook’s Drug, Harco, K&B, Perry Drug Stores, Thrifty PayLess and Bi Mart. To assist in expanding their wellness offerings, they also acquired the health care plan PCS health Systems and Envision Pharmaceutical Services. They have also had many partnerships over the years that have helped them grow. They partnered with GNC, General Nutrition Companies, which opened mini stores in the Rite Aid’s, so customers had an added convenience to purchase vitamins and supplement to aid in their personal wellness. They then partnered with Drugstore.com which allowed their customers to order online and pick up same day in the store or chose mail order. After all these acquisitions and partnerships over the years Rite Aid has recently sold over 1,900 of their stores to Walgreens in 2018. On top of selling these stores, just last week it has been said that Albertsons is looking to purchase the remaining of the Rite Aid stores, so they can compete with Amazon. It remains to be seen if the Albertson merger of Rite Aid will go through or
can expand through marketing ideas and ways the company can save money by not stocking up on as
Rite Aid had a major accounting scandal in the late 1990s that led to the departure (and subsequent jail time) of several top ranking executives, including the former CEO Martin Grass, former CFO Frank Bergonzi and former Vice Chairman Franklin Brown had conducted a wide-ranging accounting fraud scheme. Former CEO Martin Grass had plaid guilty and was sentenced to eight years in prison, fined $500,000, and given three years' probation for his role in a billion-dollar accounting fraud. (Grace) Former vice chairman Franklin C. Brown was the only defendant to go to trial; he was sentenced to serve 10-years in a medium-security facility and fined $21,000 with two years of probation. After serving six years in prison, Franklin C. Brown was released on January 18, 2010. (Deseret News) Former chief financial officer Franklyn M. Bergonzi was sentenced to 28 months in prison, former vice president Eric S. Sorkin received five months in jail and five months house arrest, and former vice president Philip Markovitz serve one month in jail, with five months house arrest.
When brothers Sidney and Stanley Goldstein partnered with Ralph Hoagland in Lowell Massachusetts in 1963, they were unaware of the nationwide impact that CVS would have on the retail drug industry today. Just six years after establishment, Goldstein and Hoagland sold to Melville Corporation and began acquiring companies including Revco, Prescription Health Services, People’s Drug and Eckerd Health Services. This led to an increase in sales reaching one billion dollars in 1985 as well set the bar for all pharmaceutical companies within the United States.
Did you know that the CVS in “CVS Pharmacy” stands for “Convenience, Value, and Service?” CVS is a known pharmacy innovation company with a simple and also very clear purpose: helping everyone on their road to better health. Tracing back there history through there retail, pharmacy benefit management and retail clinic roots, today CVS health is a pharmacy innovation company that is reinventing pharmacy. Their company has drastically grown and improved over the years, but their commitment to their customers, clients and communities has never wavered. CVS pharmacy headquarters is currently located in Woonsocket, Rhode Island. (“CVS history”, para. 1)
They first want to know, within the market for the potential location, who are their direct rivals? The demographic information they have collected will help in determining this. They’ll also want to determine the size of these rivals, and what their performance is within the market. Assessing popularity, as well as strengths and weaknesses of direct competitors will be helpful in determining how Eddie Bauer’s performance could match up against their competition, as well as how they might gain competitive advantage. Not only will the new store’s performance be affected by its surrounding competitors, but taking a look at competitor performance can help them to determine the popularity of these types of products within that market.
Rite Aid Corp. has its corporate headquarters located at 30 Hunter Lane, Camp Hill, Pennsylvania 17001, and their telephone number is (717) 761-2633. Rite Aid’s common stock is listed on the New York Stock Exchange and the Pacific Stock Exchange under the trading symbol “RAD” The board of directors consists of 11 members. Robert G. Miller is the Chief Executive Officer (CEO) and Chairman of the Board. The board is mainly male in gender with only 2 female directors. One of these females is Mary F. Sammons, president of the Rite Aid Corp. She is not only the President of the company, but also fulfils the role as Chief Operating Officer. The majority of the members are over the age of 55 years, with the youngest member being 43 years old and the oldest being 72 years old.
In 1958, Alex Grass incorporated Rack Rite Distributors, Inc. Grass opened Rite Aid’s first store, through Rack Rite, in 1962, as a Thrift D Discount Center, in Scranton, Pennsylvania. 1963, Thrift D Discount Center became a drugstore chain when they opened five more stores. In 1965, the Thrift D Discount Center expanded to five northeastern states by quickly acquiring and opening new stores. In 1966, the first Rite Aid store opened in New Rochelle, New York. 1976, they introduced seventy Rite Aid private label products. The next year, 1968, they changed their name, officially, to Rite Aid Corporation and started trading on the American Stock Exchange. Then, two years later, in the beginning of the 1970’s, they moved to the New York Stock Exchange. Again, two years later, 1972, they had been operating 267 stores in 10 states. 1981, nine years later, they became the third-largest retail drugstore chain in the country. In 1983, they made over $1 billion in sales. In 1987, their twenty-fifth anniversary was celebrated and they, by then, had 420 stores in 9 states and Washington D.C., as well as Pennsylvania, where they started their business as a Thrift D Discount Center, in Scranton. Their market had greatly expanded and they had passed the 2,000-store mark to become the nation’s largest drug store chain in terms of store count. Eight years later, in 1995, they acquired Perry Drug Stores, the biggest chain of drugstores in Michigan. It was their largest acquisition to date. By then they had operated nearly 3,000 stores. That same year, Martin Grass succeeded his father Alex Grass, as Chairman and CEO of Rite Aid. The year after that, they had grown out to the West Coast and the Gulf Coast, adding more than ...
Walgreens ensures to have high quality products and solutions by making it convenient for clients to get in and out with what they actual need, enhancing its beauty products and stimulate the convergence of health care by putting everything together. In addition, by utilizing over-the counter health service and providing wellness products, the company helps its customer to find more seamless solutions. Employees are trained to make friends and build relationship internally with their customer. Beyond accelerating the products in the physical store, delivering well experiences to customers also need highly engaged employees offer superior customer care in every community. In addition to provide outstanding customer service in retail stores, the company started a piloting program where people are able to order their prescriptions through phone and takes advantage of convenient curbside pick up. In essence, this action partly shifts Walgreens from a retailer to a service based organization. As a result, through the functional strategy in the company, customers can undergo the differential shopping experiences compared to other drugstore in the industry, and the company can improve its positive reputation and customer
I would suggest that they incorporate more diversity in their ads and campaigns to reach different ethnicities if they want to continue to expand. Also, in stores, particularly the Willow Grove, PA location, is very large and spacious. Upon entering the store it is primarily women’s apparel and accessories, as well as men’s. Maybe the company can incorporate more of its products in this location, to provide consumers with more of a product assortment.
We strive to be the number one provider in the United States by investing not only in our company and technological advancements, but also in the communities in which we serve. Whether our customers are new to this world or our veterans, we know that our company can provide them with the newest and most effective products and services, while promoting the healthy communities in which they live. Through our valued employees, CVS is able to provide quality services and quality products. Retail Pharmacy Growth Strategy: CVS has managed to grow considerably in the past few years with the help of acquisition of beneficial companies and integrated the operations of these companies by creating synergy to drive higher margin and greater economies of scope. CVS is building more and more pharmacy stores in convenient locations.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
With the Walgreen's proposed acquisition of Rite Aid, we posed 3 questions to our members. Here are the questions and the results:
Rite Aid Corporation which ranks as the third largest retail drugstore chain in the United states, control about 2,380 drugstores in 28 states across professionals pharmacy service, a full selection of health and personal care products, an assortment of general products in the nation and in the District of Columbia ( Rite Aid, 2007 ). Rite Aid has a great management team to help them with their success their team includes Chairman, President and Chief Executive Officer, Special Advisor, Corporate Strategy ,Chief Operating Officer ,Chief Administrative Officer ,Executive Vice President – Pharmacy, Executive Vice President, Store Operations ,Executive Vice President and General Counsel( Rite Aid, 2007). Differentiate between management and leadership is very different for example, response to its huge losses, Rite Aid has said it expects to spend more than $94 million to reassess and restate its financial results for 1998 and 1999( ). Furthermore, that includes rerunning mainframe-based accounting systems and paying IT people overtime to work with internal and external accountants and auditors during the process. Still, Rite Aid does not plan to replace its combination homegrown Computer Corp. accounting system
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
The first strategy they should build on is their brand name, Papa Johns. They might not be number one in what is a very large market place but number three is not bad. People know the name Papa John but it is still not as prevalent as Pizza Hut or Domino's. Granted it has not been the marketplace near as long and does not have the brand loyalty of the top two but keep in mind where they have come in a much shorter period. Most of the brand loyalty of the top two comes from habit of repeat business and remember that habits can be broken. To do so you have to put your brand out in the eye of the consumer to remind them that they have options. It takes only one chance to start a new habit. By taking advantage of the brand status you do hold is how you grow your customer base.