Swot Analysis Walgreens

In 2009 Walgreens hired IDEO, a global firm that helps redesign companies, to research what their customers were demanding most. They found a “huge push to improve quality and reduce overall healthcare costs”. (Wagner & Orvis, 2013) Walgreens decided they needed a new strategy that would satisfy customers while keeping promises of quality returns to their shareholders. The strategy they chose, that has put them in the position of customer service leader in the retail pharmacy industry, is identified as the unique industry wide differentiation strategy that consists of the following three areas:

• Create a Well Experience

• Transform the role of community pharmacies

• Establish an efficient global platform

These three characteristics have

Second, to offer an easy, expert experience for patients, healthcare providers and payers that differentiates Walgreens from its competitors. Third, to be the strategic partner of choice – seeking targeted partnerships and pursuing joint initiatives with healthcare providers and

A few of the most recent are third-party pharmacy benefits management companies delivering prescriptions through the mail, grocers like Wal-Mart and Kroger offering in-store pharmacies, and the growth of Amazon and Google selling the same products online. Walgreens no longer has to worry only about competing with other drugstores but also with retail, discount, and grocery stores too. Companies such as these have found new ways to sell both pharmacy prescriptions and over-the-counter drugs at very low prices, making new competition for Walgreens. Drugstores are not able to compete with these prices so they rely on higher profit margins and boosting net sales from loyal customers who prefer brand name prescriptions. Competition for the retail pharmacy industry is expected to continue to increase by 2.6% annually until 2019. (Yaparwong,