Eckerd Position for the Future Assume we are standing in the year of 1998, the date of data provided in “Eckerd Corporation”. Till 1998, Eckerd chose a mixed strategy that is not really clear and could hardly tell the difference from their major rivals such as Walgreens, CVS and Rite aid. They all contain pharmacy for all kinds of drugs, include variety products such as health, generic, beauty and they all began building freestanding stores. Think about it. Is this strategy truly the best for Eckerd? Actually, we don’t think this mixed and unclear strategy worked best for Eckerd, a strategy that has an obvious focus would fit better. Mixed strategy is acceptable, but without a focus, it would hardly built an “everything fits” system and its …show more content…
They shorten their time spending in pharmacy store, only spend 7.5 minutes on average in Eckerd (Kelleher&Porter, 2000). When people want to in-and-out quickly, the swarming crowds in the mall make it a bad idea to locate pharmacy store in strip malls. On the other hand, since many customers of Eckerd are seniors, they might not willing to travel a long distance. Freestanding format stores located near neighborhoods are more convenient than those located in malls. However, most of the Eckerd stores were set up in strip malls. Its competitors, like Walgreens, had already realized increase in sales before Eckerd took action to adapt this shopping habits. Even though Eckerd started to transform its stores into freestanding units in 1993, it reacted too late and this made it less competitive. Eckerd needs to speed up its pace, relocated its stores in freestanding units to fit its customers. In addition, in order to tailor its clients and serve them better, Eckerd could set up call-to-reserve and pick-up method. Seniors can call pharmacy stores, making sure the products are available in stores before going to make …show more content…
Eckerd could look further. It can analyze the feasibility of global expansion. For example, Canada has the similar culture and environment to U.S., it could be feasible for Eckerd to penetrate into Canadian pharmacy market. Japan is well known for its high percentage of seniors in its total population, which could become Eckerd’s prospective customers. But Eckerd should be careful of the local policies, competitors and costs before it start global expansion. Also, Since Eckerd was under heavy LBO debt, global expansion might place more pressure on its financial
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Johnson & Johnson (J&J) is an American powerhouse in the healthcare industry. It is number 46 on Forbes list of the World’s Biggest Public Companies (DeCarlo, 2013). It has sixty international locations. J&J has been involved in health related products since 1886. The management structure is decentralized allowing for strategic operations depending on need and location. There are four central business divisions, consumer, pharmaceutical and medical devices and diagnostics. J&J has a significant presence in China and has targeted dominant health concerns, which includes the health issues of their aging population. J&J are not the only global company positioned to address China health care needs. Emeritus and Merrill Gardens are two Seattle, Washington companies whose focus is on senior care. These two companies met in Hong Kong with a group of global investors to discuss the development of the Western for...
The corporate-level strategy is the process by which companies choose their strategic positions. Frequently, these are new strategic positions taken. The expectation if that they will help increase the firm’s value. Corporate level strategy differs from the business level strategy that is concerned with such issues as lowering cost, differentiation of product, and how to focus on a market segment, for example. The corporate-level strategy is generally narrow in scope. It is most often concerned with only two key issues. One issue is what product businesses and markets the firm should compete. The other issue of concern for the corporate strategy is how that business should be managed by the corporate headquarters. The overall corporate strategy is carried out by selecting and managing groups from different businesses who are competing in different product markets (Hitt, 2015). Bringing the bear claw clip to market is illustrative of several principles of corporate
When we analyze the impacts of prescription drugs on the elderly, there are three key concepts that come into play. First, pharmaceutical companies or the drug manufacturers, these are companies responsible for manufacturing generic and specialty drugs. Secondly, insurance plans and covers, these are supposed to provide subsidies to the ones taking the covers. Thirdly, the government both federal and state or policymakers, these people come up with policies meant for protecting the citizens from exploitation and providing better healthcare to them.
A large portion of baby boomer spending in these stores country-wide is in the pharmacy. Recently, Target has replaced a majority of it’s pharmacies with CVS pharmacies. This new venture has created a a product/service differentiation competitive advantage for Target. As stated by Lamb, Hair, & McDaniel (2017), “a product/service differentation cometitive advantage exists when a firm provides something unique that is valuable to buyers beyond simply offering a low price” (p. 35). With this one-up over Wal-Mart, Target should attract a nice amount of baby boomer money with the help of the popular CVS
People from age group 34 to 54 account for 40.3% of total department store market (IBISWorld 2016). This segment is also Myer’s most profitable segmentation. Australians from this segmentation have steady careers and income. Consumers are more keen on make purchase decisions from up-market stores like Myer.
Consultant pharmacy focuses on medication management and improved health outcomes for elderly patients. During this panel, I was able to expand my limited knowledge about consultant pharmacy and learn about the opportunities in this segment of pharmacy.
The successful execution of strategy critically depends on the alignment of these 4 elements with the strategy. What is sometimes overlooked, however, is that whenever a strategy is changed, it is almost always the case that the existing organizational alignment will also need to be changed. Unless management actively realigns their business to reflect the new strategy, execution will suffer.
...markets. This was accomplished by focusing on design and engineering. However, without strong sales, marketing and production resources, the company will not be able to secure these alternative markets. Since the product is nearly completed, Ecton should stay with their original plan. This would allow Ecton to take advantage of their position as the first to market when negotiating with a potential buyer. By selling the business now, Ecton could avoid the necessity of giving up additional equity to secure additional funding. This would give the original investors (which include the founders) the greatest return on their investment. Michael Cannon has already developed an exit strategy in his Phase III plan. This plan should be followed through. Since Ecton is close to perfecting their product the time is right to make the best deal possible for an acquisition.
...emand for prescription drugs over the next 25 years. The number of people between 45 and 64 years old will increase 41% by 2015. Given the rise in age population and life expectancy rates around the world and the level of pharmaceutical use by aging individuals, growth in the industry should remain in an upward trend.
Due to longer life expectancy and the rapid increase of the world’s population, the pharmaceutical industry is becoming increasingly important. The problem of aging population and high healthcare cost is particularly serious in Japan. This essay will focus on a Japanese drug maker – Takeda Pharmaceutical Company Limited (Takeda, the company). First, in order to provide background information, the current business model and relevant information of Takeda will be outlined and analysed based on financial data and the company’s annual reports. Second, the essay will examine the most significant challenges that the company has faced over the past five years, including the cause and effect behind this challenges. Finally, the discussion will be looking at the pharmaceutical industry as a whole, exploring the merger and acquisition activities of large pharmaceutical firms in the world, i.e. Big Pharma.
The best strategy for the company now is focusing on customer wants and needs. Realize customer background, keep close contact with customers, and collect feedback and follow-up, customer orientations are the good implementations for this strategy.