Walgreen's Business Analysis

Executive Summary (CK, BB, KM, AA & MC)

Walgreens is the largest drugstore chain in the United States. It was formed in 1901 by Charles R. Walgreen in the south side of Chicago. Walgreens mission from day one has been to create a healthy and happy life for their consumers and to this day they continue to do so. Walgreens is “at the corner of happy and healthy.” As a whole they compete in the food and staples retailing industry but specifically they compete in the drug retail sub-industry where competition is intense between drug stores, warehouse clubs, supermarkets and supercenters. They recently changed their strict business strategy approach to leadership ever since new competitors entered the drug and retail industry. They have two main direct competitors, which are CVS and Rite Aid. Walgreens is currently in the growth stage of the industry life cycle due to the growing demographics of Baby boomers as they are the largest and the eldest population in which the most prescription drugs are written for. Walgreens has three lines of revenue, prescription drugs, nonprescription drugs, and general merchandise in which prescription drugs is its main source of revenue. Walgreens in 2002 created a strategic partnership with Boots Alliance which is headquartered in Switzerland; creating international expansion and a new market share. Since the merger with Boots Alliance , they now have an international management team that is separated into three division. These three divisions are Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. Walgreens current business strategy is focus cost leadership. Overall, Walgreens is very successful business due to their strategic business implementations on all levels of management and production.

Introduction (CK)

Walgreens is the largest drugstore chain in the United States. “It has more than 8,200 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The...