By Austin Sullivan,
Charles Gilmur, and
Maureen Dorsett
S
History
S Founded in 1901 by Charles R. Walgreen, Sr.
S Original store measured only 50 ft. by 20 ft in
size in Chicago’s south side.
S Was known for getting people their
prescriptions before hanging up the phone.
S By 1929 there were 525 stores and they were
continually growing.
S Milkshakes and Cookies for 20 cents gave
Walgreens huge amounts of publicity
S By 1984 Walgreens opened its 1,000th Store.
News
S Did not quit the selling of cigarettes,
regardless of CVS’s choice to stop.
S Including Hepatitis-C treatment as
an option for care.
S Pharmacist who refused to sell Plan
B got fired and sues Walgreens.
S Partnership with Inovalon brings big
data analytics to Walgreens.
Strategy Change
S Shift from location
emphasis
S Focus on differentiation
S Customer
Satisfaction/engagement
S Shift to single point of
patient care
S Maximize human capital
Was It Successful?
S Yes!
S 2014 saw a 66.1% increase
from 2013 earnings
S Sales up 5.9%
S Prescription sales up 7.3 %
S Customer engagement
went from 25th percentile
to 95th!
Relation to Class
S Reframing retail strategy
S Adjust to changing
environment
S Economy, competition,
government
Strengths
S Market position
S Brand equity for quality
and convenience
S Superior locations
S Leader in innovation
and technology
Weaknesses
S Inability to set itself
apart from competitor
prices
S Stores are often cluttered
and don’t feel convenient
S Pharmacy is
inconvenient to get to
Opportunities
S Aging of the baby boomer
population
S Demand for prescription
drugs is increasing
S International expansion
S Pushing non-pharmacy
merchandise
Threats
S Intertype competition
S Bigger competitors have much
more SKUs
S Vulnerable to laws and regulations
due to their heavy reliance on
prescription drugs
S Shortages of pharmacists in the
future is predicted
Sources
S
http://www.zacks.com/stock/news/117623/Q1-Earnings-In-Line-at-Walgreens
S
http://www.ey.com/GL/en/Industries/Life-Sciences/Walgreens-strategic-transformation
S
http://www.strategy-business.com/article/00195?pg=all
S
http://www.mayaavi.com/2013/10/changing-structures-and-behaviors-at.html
S
http://acraretail.org/documents/Katy_Mullis_-_Walgreens_SWOT_Analysis.pdf
S
http://www.geekosystem.com/walgreens-stills-sells-cigarettes/
S
http://online.wsj.com/article/PR-CO-20140217-905109.html
S
http://www.twst.com/update/38141-walgreen-company-walgreens-brings-big-data-analytics-to-healthcare-clinics-through-expandedrelationship-with-inovalon
S
http://articles.chicagotribune.com/2014-02-05/business/chi-walgreen-cigarettes-20140205_1_tobacco-sales-cvs-caremark-walgreenco
S
http://www.walgreens.com/marketing/about/history/default.jsp