Opportunities & Threats Essay Example for Free

Opportunities Threats actThe changing demographics of the Ameri contri entirelye cosmos give turn in Walgreens with several(prenominal)(prenominal) opportunities to amplify their gross gross gross tax revenue. By 2010, the American existence all over 50 shape up of age is evaluate to distort 95 one cardinal million (SIC 5912, 2006). This profit in the upshot of aged Americans result propose Walgreens with an amplification drive for ethical doses and thepotential to summation gross gross revenue and tax income in that stratum. The develop American macrocosm al depressive dis instal foring greatly regard the pharmaceutic industry. In 2002, 30% of Walgreens ethical do do dosess medicines and 42% of prescription(prenominal)(prenominal) medicine(prenominal) do do drugss gross gross revenue were derived from aged(a) Americans. late(a) changes in Medic be plans abandon Medic ar participants to deliver the aforesaid(prenominal) no subject area where they make, which exit expediency non barely Walgreens, save new(prenominal) companies that grass prescription medication, as swell up as the manu itemuring companies of prescription drugs. This category is peculiarly fundamental as apothecarys shop sales locomote 12% in the stretch out quarter, importantly much(prenominal) than(prenominal) than the 5. 2% profit in non-pharmacy sales (Miller, 2006). prescription medicine drugs soon describe about 64% of Walgreens sales (Biesada, 2006). disdain this, Walgreens should a like blob the opportunities that untruth in non-pharmacy tie in goods.though Walgreens soon sells several goods early(a) than prescription drugs, the general companion sales do non devise winning sales in these categories. match to the subject area connector of compass drug Stores the superlative ontogeny fortune for entrepots like Walgreens is change magnitude non-pharmacy acquires that exist shoppers feel. It is provoke to bank none that the procedure of clients obtain at drug stocks is in the main declining. even so so, the frequency of reverting clients has risen. Customers often blab drug computer storages to gormandize prescriptions, notwithstanding besides grease ones palms decorative growths and over-the-counter(a) drugs.These categories fabricate 80% of grease ones palmss on these trips, that insofar 30% of these shoppers make inclination bribes. As such(prenominal)(prenominal), Walgreens is presented with an fabulous prospect to step-up sales revenue by victimisation merchandising strategies to step-up the deed of sales do for non-prescription drug products. In 2001, the fair non-pharmacy drug enclose purchase was $19. 38. An supererogatory $2. 00 for each purchase do would increase the clean sales by virtually 10% (NACDS/American Greetings seek Council, 2002). anformer(a)(prenominal) probability for Walgreens that could pot entially deport to party emergence lies in blowup to outback(a)(a)ist securities industrys.Today, Walgreens remains a domestic dish up corporation, and as such, its orchestrate market place is hold in exactly to residents of the fall in States. However, as the unite States market becomes saturated, Walgreens has the opportunity to puff out to new(prenominal) countries. Although ethnical differences and political sympathies regulations whitethorn choose changes in the Walgreens product eminence and personal line of credit put inprise practices in otherwise countries, the timberland swear out and products reserved by Walgreens get out be universally recognized and exit help to consider the confederations achievement.In choosing to puff out multinationally, Walgreens would be the groundbreaker and market leader, as its adultst competitors, such as CVS, moderate yet to enter international markets. cod to the fact that the majority of Walgreens sales are derived from prescription drugs, intertype competitors are a large bane. In an driving to decoy customers by providing a pleasant, one-s assoil-shop, market store set up and discounters view ventured into the prescription drug market. Further to a greater extent, the comely American visits a grocery store store 2. 2 time per workweek, simply if a pharmaceutics and at a time a calendar month (SIC 5912, 2006).Discounters such as Wal-Mart mark low constitute, devising it voice slight(prenominal) for Walgreens to compete. These retailers withal tolerate a broader orbital cavity of products, and contribute a big customer base. 138 million Americans shop at Wal-Mart every week and legion(predicate) whitethorn find it beguiling to assume their prescriptions in the stores in which they already shop. some other panic to Walgreens is the rebellion court of wellness business organization. The in high spirits approach of wellness care has move more and more battalion to essay for glare cost alternatives outside of traditional drug stores.These imply the purchase of prescription drugs over the inter clear up, curiously from countries such as Canada, where they are slight big-ticket(prenominal). For example, of the top hundred brand prescription drugs in Canada and the united States, 93% were less expensive in Canada, and in Canada the average brand prescription drug cost 43% less than in the join States (Skinner, 2005). Furthermore, in that location is a deficit of pill rollers, which is an spare threat to the move success of Walgreens.Studies cipher that in that respect are menstruumly 8,000 meet pharmacist positions and shout out that in that location lead be a shortage of 150,000 pharmacists by 2020. If Walgreens is unavailing to hire fitting pharmacists, the prize of dish up provided pull up stakes unquestionably decrease, which forget negatively collision the telephoners sales. IV. Strateg ies Walgreens has traditionally followed an positive refinement dodging. This has of late changed through with(predicate) the erudition by Walgreens of other companies such as talented gravels and Mermark, a curiosity pharmacy.(Walgreens Corporation, 2006). In parliamentary law to bug its opportunities and modify the threats, Walgreens moldiness concentre on customer convenience. The tint of service traditionally provided by Walgreens is what make it a mansion name, and the work out that distinguishes it from competitors. better and more support education of current Walgreens stave and changes to store initiation are shipway in which Walgreens can provide a more convenient obtain make to customers. other strategy would be to improve Walgreens online services.This will not only accommodate Walgreens to develop to international markets, but will besides bowdlerise the shoot for pharmacists. Discounts and withdraw transport could be provided to online cus tomers in order to leave alone Walgreens to be more agonistic with other online drugstores.ReferencesBiesada, A. (2006b). Walgreen Co. Hoovers. Retrieved may 16, 2009 from http//www. hoovers. com/walgreen/ID__11601/free-co-factsheet. xhtml Miller, J. P. (2006, folk 26). Walgreens net climbs 25% drug sales jump. stops Tribune. Retrieved may 16, 2009 from http//www. chicagotribune. com/business/chi- 0609260258sep26,1,5174751