A SWOT Analysis of Walgreens in the Competitive Pharmacy Marketplace

Katy Mullis

Table of Contents
Page Contact Information .............................................................................................................3 I. Walgreens Overview ........................................................................................................4 II. Strengths..........................................................................................................................5 III. Weaknesses ....................................................................................................................7 IV. Opportunities
Walgreens stores are usually stand alone locations, which has allowed the company to easily expand into 24-hour and drive-thru services in recent years (Walgreens Corporation, 2006a). These locations are definitely advantageous to the company, as some estimate that freestanding stores usually generate more than 30% more in sales than the more traditional strip center stores (Reeves, 2006). Furthermore, while other competitive strategies can usually be copied over time, locational advantages cannot. These superior locations offer Walgreens longterm sustainable competitive advantage (Levy & Weitz, 2004). As a market leader Walgreens is also committed to leading the way in innovation and technology. In 1968 Walgreens was the first to use child-resistant prescription containers. In 1981 Walgreens began taking steps to become the first drugstore chain to have its pharmacies linked by satellite. In 2002 Walgreens began to offer non-English prescription drug labels and was the first to do so (Walgreens Corporation, 2006b). The company’s continued emphasis on developing and utilizing technology makes its business more efficient and serves its customers better.

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III. Weaknesses While Walgreens it the current market leader, the company's greatest weakness may be its inability to set itself apart from competitors based upon price. Wal-Mart's recent announcement that it will sell a