Preview

walgreens

Satisfactory Essays
Open Document
Open Document
733 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
walgreens
Ana Cruz
Comprehensive Case Analysis of Walgreens Company
Abstract:
This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. Has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.
Case Summary:
Introduction:
Walgreen Co. (Walgreens) and its subsidiaries operate a drugstore chain in the United States. The company provides its customers with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities across America. The firm currently operates two mail-order facilities and has 7,752 retail drug stores located across all 50 US states, Guam, Puerto Rico, and the District of Columbia. Prescription drugs account for 65% of all sales, with the rest coming from front-end store purchases. Walgreen Co. is ranked number 32 on the Fortune 500 list and is currently trading stock on the NYSE and NASDAQ stock exchanges.
History:
Opening its first store in 1901, Charles R. Walgreen started the iconic drugstore chain on the south side of Chicago. Along with selling prescription and over the counter drugs,

You May Also Find These Documents Helpful

  • Good Essays

    Facts: The Walgreen Co. is a national company. It does business with pharmaceutical medicine. Walgreen tested a computer system it had developed whereby ten physicians electronically transmitted prescriptions to a Walgreen pharmacy. Each…

    • 431 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Walgreens Level 5 Unit 5

    • 1397 Words
    • 6 Pages

    In 1950 Walgreens started self-service instead of clerk service stores in the Midwest and by 1953 was the largest self-service retailer in the country. In 1960 Walgreens went to market in Puerto Rico. In 1975 Walgreens reached $100 million in sales.…

    • 1397 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    There was a growth of 2% in the sales of retail drug industry of the US. This is because; the retail segment has been growing at a steady pace for the last few years due to the positioning of healthcare products and services in the market (Redman, 2011). The positioning of drug stores in the market is well organized due to the presence of low average ticket, convenient locations, inflation, and flow of pharmacy traffic.…

    • 1293 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Walgreens Analysis

    • 2782 Words
    • 12 Pages

    Walgreens has grown from a small, neighborhood-oriented drug store to a trusted, national pharmacy. Founded in 1901 by Charles R. Walgreen, the company bloomed from a commitment made to perseverance. Walgreen came from Dixon, Illinois at the age of sixteen, working an unpleasant job at a drug store after he lost a portion of a finger that left him incapable of continuing a career in athletics. He left with an ambition of entrepreneurship as the flourishing city of Chicago welcomed him with the booming pharmacy business. Devoted to his goal, Walgreen worked his way through gaining experience and financial stability within the growing industry. His work experience through jobs with different pharmacies allowed Walgreen to analyze the strengths and weaknesses in their business operations. Focusing on the gaps in service and the needs by customers that were not being met, Walgreen had an opportunity to capitalize on the industry’s shortcomings by opening his own pharmacy.…

    • 2782 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Walgreens, Co. is the largest drug store chain in the United States. It provides pharmacy services in addition to medical supplies, home needs, convenience goods and cosmetics. It sells a wide range of products from over the counter medicine, foods, cosmetics, supplements and vitamins, soaps and a multitude of other goods. The major service of the company is the pharmacy, for which Walgreens, Co. is most notable. Major competitors include Rite-Aid and CVS pharmacies.…

    • 1716 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Walgreens’ principal activity is to operate a chain of retail drugstores that sells prescription and nonprescription drugs. The company also carries additional product lines like general merchandise including cosmetics, food, beverages and photofinishing. Walgreens is one of the fastest growing retailers in the United States and led the chain drugstore industry in retail sales and profits last year.…

    • 1077 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Walgreens is a nationwide chain of drug stores, with its headquarters located in Deerfield, Illinois. It currently owns and operates about 5,515 stores in the U.S. and Puerto Rico. Walgreens stores offer prescription and non-prescription drugs, grocery items and general merchandise. Its main goal is to maintain constant growth and innovation.…

    • 5138 Words
    • 21 Pages
    Powerful Essays
  • Better Essays

    Walgreen’s was founded in 1901, by Charles R. Walgreen Sr., in the city of Chicago. When Walgreen’s was opened, there were already 1500 pharmacy’s competing in the same market. He was determined to succeed and "by making certain drug items himself, Mr.Walgreen was able to ensure their high quality, yet offer them at lower prices than comparable merchandise" (Unknown, 2013). Today the organization is based on the same century old company culture reflecting the vision of its founder.…

    • 797 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Walmart

    • 6499 Words
    • 26 Pages

    The first Wal-Mart store was opened in Rogers Arkansas in the Year 1962. From Wal-Mart’s company website a common misconception people have in regards to discount retailing is put to rest. That being this was the year it all started, When Kmart, Target, and Wal-Mart first opened. In actuality however, the chain of variety stores Sam Walton owned during the 1950’s faced stiff competition for many regional discount stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Also from the company’s official website, it is important to note that in 1983 the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. Wal-Mart’s company website states that Today, 7,262 stores and club locations in 14 markets employ more than 1.9 million associates,…

    • 6499 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Walgreens is one of the fortune 500 companies and among the fastest growing retailers in the country. Walgreens as of April 30 operated 8307 location in all 50 states including the District of Columbia, Puerto Rico and Guam. This includes 7855 drugstores, 146 more than a year ago, including 21 stores acquired over the last 12 months. The company also operates infusion and respiratory services facilities, specialty pharmacy and mail service facilities. They also have a take care health system subsidiary which manages more than 700 in-store convenient care clinics and worksite health and wellness canters.…

    • 1778 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    There are many threats that Walgreens faces such as governmental regulations regarding patents are not accepted everywhere. Each state is different when it comes to drug regulations which can be a problem when there are so many different franchise locations all over the nation. Problems such as disorganization or even disputes over different stores offering different products to consumers can arise. A major threat to the company is that many players already exist in the pharmaceutical field with same products but with different brands. A medication with the same symptoms can be made by many different companies and all do the same work. Walgreens has started to compete in this and brand their own medications to bring in even more revenue to…

    • 191 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Dollar General

    • 2853 Words
    • 12 Pages

    Our group performed an analysis of Dollar General’s external and internal environment, which included a Porters Five Forces breakdown. Those findings as well as analysis on the company’s financial statements formed the basis for our recommendations. We considered several alternative growth strategies for Dollar General to implement. Those strategies are, international expansion, continued domestic expansion, internal improvements, extending services, and taking the company private. We concluded that the most beneficial direction for the company is to go private thereby relieving pressure to meet short-term objectives. We also believe that Dollar General can benefit from increasing domestic expansion and improving its value chain efficiency by upgrading merchandising products. This strategy will allow Dollar General to achieve sustainable long-term growth.…

    • 2853 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Walgreens Marketing Plan

    • 2744 Words
    • 9 Pages

    What was once a small pharmacy owned by Galesburg native Charles R. Walgreen, Sr., in 1901, has grown into the largest pharmacy chain in the world. As of May 31 2014, Walgreens operated 8,217 stores all located in the United States.(Walgreens,2014) Walgreens offers its customers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photos, and seasonal items, as well as over the counter medications. In addition to its well-known pharmacies, Walgreens also operates home care facilities and specialty, institutional and mail service pharmacies. Its Take Care Health Systems subsidiary manages more than 400 convenience clinics at Walgreens Drug Stores. (Walgreens/locations 2014) As of 2014, Walgreens Co. changed their name to Walgreens Boots Alliance Inc. The company, formed when US-based Walgreen Co. bought its European counterpart Alliance Boots, which included nearly 13,000 retail pharmacies in 10 countries, mostly the US and its territories and the UK, selling prescription and over the counter drugs along with health and beauty products and general merchandise. The Alliance Boots part of the company also includes wholesale operations serving more than 140,000 pharmacies, hospitals, and clinics in a dozen countries.(Walgreens Annual Report,2014) Walgreens main objective is to be America's most loved pharmacy-led health, wellbeing and beauty enterprise.…

    • 2744 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Walgreens

    • 2111 Words
    • 9 Pages

    The Walgreens chain began in 1901, with a drug store on the corner of Bowen Ave and Cottage Grove, Chicago, Illinois, United States owned by Galesburg native Charles R. Walgreen, Sr.[6] By 1915, there were five Walgreen drugstores. He added several improvements to the stores such as soda fountains and luncheon service. He also began to make his own line of drug products and was then able to control the quality of the items and sell them at lower prices. By 1916, 19 stores were in operation, all in Chicago. And in that same year, all the stores were consolidated under Walgreen Co. The 1920s was a very successful decade for Walgreens. In 1921, the company opened stores outside of residential areas and also introduced the malted milk shake in 1922. Walgreens also established its very own ice cream manufacturing plants to match the demand for ice cream at that time. By the mid 1920s, there were about 65 stores with an annual sale of 1.2 million dollars. By this time, Walgreens had expanded into other states like Wisconsin, Missouri, and Minnesota. By 1930, there were 397 stores in 87 cities with annual sales of 4 million dollars. The company did not really suffer from the Stock Market Crash and Great Depression. By 1934, Walgreens was operating in 33 states with over 600 stores. After Charles Walgreen Sr. died, his son Charles R. Walgreen Jr. took over and ran the chain until his retirement. The Charles R. Walgreen Jr. years were relatively prosperous, but lacked the massive expansion seen in the early part of the company. Charles "Cork" R. Walgreen III took over after Jr's retirement in the early 1970s, and brought the company through many modern initiatives, including the switch to a computer inventory based system (bar code scanning). The Walgreen family was not involved in senior management of the company for a short period following Charles' retirement. In 1986, it acquired the MediMart chain from…

    • 2111 Words
    • 9 Pages
    Best Essays
  • Good Essays

    Wal Mart

    • 1969 Words
    • 6 Pages

    Wal-Mart is an American multinational retail corporation and one of the leading discount department retail stores (Wikipedia). It is the highest- grossing company in the United States (Fortune 2008a), and is by far one of the most successful companies worldwide. Wal-Mart offers a place to buy the majority of our goods under one roof like electronics, furniture, clothing, pharmacy, sports, food, books etc. Wal-Mart sells good at lower price than the others and this is even shown by its slogan “save money, live better”. It drives out smaller and sometimes even the expensive stores out of business due to its lower prices. Wal-Mart provides jobs for thousands of people in the society including the low-skilled people. It represents a trend of one stop shopping where we can get almost everything that we want.…

    • 1969 Words
    • 6 Pages
    Good Essays