Question

How is Walgreen strategy affected by the life cycle in the industry?

Answer 1

Walgreen Co. Walgreen Co., can be described as among the largest companies operating retail chains of pharmacy in the United States. The company developed a strong management team which supervised the company’s operations. This was one of the most important business strategies which have been the success of many companies. The organizational structure and chain of command imparted responsibility on each individual. We can conclude that the strategy of market penetration, establishing stores and increasing the stores in single geographic locations the most significant business strategy and it provided the company with the increase in revenues. Walgreen changed the corporate strategy of the business and emphasized that the non-profitable businesses should be liquidated. The company from then onwards followed a focus strategy.

In the slow-cycle market, Walgreens presence in the urban centers and having 70% of people living within 5 miles of stores gives the company a significant advantage. In the fast-cycle markets Walgreen has significant advantage as it has made excessive use of information technology and it invested in satellite technology very early in the business. It has enabled the company to remain connected in real-time with all its branches

Even though Walgreens has been around for 116 years, they are still in the growth part of the life cycle. WBA operates more than 8,000 location in the U.S. and Puerto Rico. That represents a store growth rate of 8.1% over 116 years, and the company still has plenty room for growth. Walgreens acquired 45% of European drugstore and distributor Alliance Boots in 2012 and the remaining 55% in 2014 to become Walgreens Boots Alliance, this growth strategy for the international market will help Walgreens to gain more market share. Currently, Walgreens is trying to acquire Rite Aid so that they can keep growing in the U.S. retail drug industry.