Drugstore
According to Levy, Weitz and Grewal (2014), drugstore are specialty store that concentrate on health and beauty care (HBC) product. Drugstore face competition from pharmacies in discount stores and from pressure to reduce health care costs. In response, major drugstore chains are offering a wider merchandise, including more frequently purchased food items, as well as new services, such as the convenience of drive through windows for picking up prescriptions, in-store medical clinics, and even makeovers and spa treatments (Katherine Rosman, 2010). Prescription pharmaceuticals often represent almost 65 percent of drugstore sales (Walgreen’s, 2011). Generally, drugstores sell two types of products which known as prescription drugs, and
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It is the Subsidiary of A.S. Watson Group. Refer to the A.S. Watson official website, Watson’s currently operating over 5,200 stores and more than 1,400 pharmacies in 12 Asian and European markets, including China (Mainland China, Hong Kong, Taiwan and Macau), Singapore, Thailand, Malaysia, the Philippines, Korea, Indonesia, Turkey and Ukraine. The founder of Watson’s is Dr. Thomas Boswell Watson and founded on year 1828. At the time Watson name as Watson Pharmaceuticals, it was pharmacists were at the front-line of health care. Customers related the symptoms of their ailments, and pharmacists dispensed pills or potions to treat them. This was the role of “oldstyle” pharmacists. In 1845 he set up a private practice in Macau with the mission to provide free medical services to the poor people of the Southern Chinese province of Guangdong.[4] After selling his practice to a fellow doctor, he moved to Hong Kong in 1856 where he became part owner of the Hong Kong Dispensary, an offshoot of the Canton Dispensary which operated from 1828–1858 known as the "Big Medicine Shop". After Dr. Thomas Boswell Watson dead, the dispensary took over by Dr Alexander Skirving Watson in 1858 following management changes and the company began trading under the name A.S. Watson & Company in
The painkiller Vioxx was introduced in 1999 by Merck & Co. It has been used by over 20 million Americans since it was put on the market. Vioxx remained on the market for approximately five years without adequate warnings about its risks. In September of 2004, Merck took Vioxx off the market after a study revealed that it doubled the risk of heart attack or stroke for patients that used it for more than 18 months. Although Merck claimed that they had no idea of these possibly lethal side effects, some internal documents imply that they had been aware of the problem for years and had not made moves to change it. Over 300 lawsuits have been filed against Merck, and it is expected that thousands more will arise.
Bargaining Power of Buyers. This is the most concerned force because many companies in the drugstore industry start to do the same thing as Walgreens.
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)
Bristol-Myers Squibb is a worldwide health and personal care company with major businesses in medicines, beauty care, nutritionals, and medical devices. BMS is a leader in innovative therapies for cardiovascular, metabolic and infectious diseases, central nervous system and dermatalogical disorders, and cncer. They are also leaders in consumer medicine, orthopaedic devices, ostomy care, wound management, nutritional supplements, infant formulas, and hair and skin care products.Some of the very well known products manufactured by Bristol-Myers Sqibb are Bufferin, Excederin, Enfamil, Clairol, and Sea Breeze. Another large part of BMS is their research and development of new pharmecutical products. Their annual budget for research and development is in excess of one billion dollars.
Prescription sales, which accounted for 66.2 percent of sales in the quarter, climbed 10.0 percent, while prescription sales in comparable stores increased 6.1 percent. The company's number of prescriptions filled increased 12.0 percent over last year's first quarter, including a benefit of 0.7 percentage points due to more patients filling 90-day prescriptions. The company exceeded by 5.5 percentage points the industry-wide prescription growth rate, excluding Walgreens, during the same period as reported by IMS Health (Walgreens, n.d., p. 1).
Rite Aid Corp. sells “prescription drugs and a wide assortment of general merchandise that they call ‘front-end products,’ including over-the-counter medications, health and beauty aids and personal care items, cosmetics, greeting cards, household items, convenience foods, photo processing services, and seasonal merchandise.” They are distinguished “from other national chain drugstores, in part, through their private label brands, their ‘stores-within-Rite Aid stores’ program with GNC and by their Internet presence. The sale of prescription drugs alone represents 59.5% of their total sales. Over-the-counter drugs and personal care items (10.9%), health and beauty aids (5.8%), and general merchandise (23.8%) account for the remaining 40.5% of their total 2001 fiscal year sales.
Mission Statement: We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers.
Background: Merck & Co. is an American pharmaceutical company and one of the largest pharmaceutical companies in the world. In 1971 the United States approved the use of an MMR vaccine made by Merck, containing the Jeryl Lynn strain of mumps vaccine. In 1978 Merck introduced the MMR II, using a different strain of the rubella vaccine. In 1997 the FDA required Merck to conduct effectiveness testing of MMRII. Initially it was over 95%; to continue the license; Merck had to convince the FDA that the effectiveness stayed at a similar rate over the years.
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
Has anyone noticed that there seems to be a drugstore being built on every corner these days? Revco, Walgreens, and Rite Aid seem to be just a few of the drug store chains that are expanding. One has to wonder if this has anything to do with the possibility of including medicine under coverage by healthcare systems. This means that they may become part of a capitated payment system to the pharmaceutical providers. "By capitation, we mean a prospective payment to physicians or providers - either individually or as a group - of a fixed amount of money to care for each patient (Pearson, 1998)." In other words, every physician is provided a set sum of money whether they see any patients or not and every pharmacy would be given money whether they prescribe any drugs or not. Drug costs will rise.
The last of these was the merger between Glaxo Wellcome and SmithKline Beecham, which formed the current company of GlaxoSmithKline. GlaxoSmithKline’s business is to discover effective medicines and healthcare products for people throughout the world and create shareholder value. They are one of the world’s leading producers of prescription medicines, vaccines and consumer healthcare products (Toiletries, Drinks). These products include SEROXAT/PAXIL, AUGMENTIN, WELLBUTRIN and ZOTRAN, all of which are pharmaceutical products. AQUAFRESH, LUCOZADE, NIQUITIN CQ and SENSODYNE, these are known as consumer healthcare products.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
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...
In 1891, George Merck established the first Merck & Co in the United States. The store was originally set up as an extension of his family’s drugstore and pharmaceutical factory which was created in 1668 by Friedrich J. Merck in Darmstadt, Germany. Due to the strained relationship between the United States and Germany during World War I, Merck & Co. was severed from its parent company in 1917 by the United States Government. In May 9, 1919, under government supervision, Merck put up for public auction 80% of their shares and finally concluded its separation from E. Merck in Darmstadt. 1953 brought on a new opportunity for Merck when it merged with Sharp & Dohme; a local Baltimore based company. This new partnership increased Merck’s customer based and resources. A decade late...
American Home Products Corporation (AHP) was founded in 1926 and has a history of continuous acquisitions of smaller companies that made proprietary medicines. In 1931, AHP purchased John Wyeth & Brother, Inc. from Harvard University. Another important acquisition was that of Canada’s Ayerst Laboratories in 1943. Ayerst was a large pharmaceutical company that had introduced Premarin, the world’s first conjugated estrogen product, and now the most widely prescribed product in the United States (ahp.com). In March of 1982, Sherwood Medical was acquired, enabling AHP to capture a share of the developing medical devices market. In 1984, Whitehall, an original member of AHP, started to market ibuprofen in the United States that was sold under the trademark Advil.