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By Austin Sullivan, Charles Gilmur , and Maureen Dorsett

By Austin Sullivan, Charles Gilmur , and Maureen Dorsett. History. Founded in 1901 by Charles R. Walgreen, Sr. Original store measured only 50 ft. by 20 ft in size in Chicago’s south side. Was known for getting people their prescriptions before hanging up the phone.

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By Austin Sullivan, Charles Gilmur , and Maureen Dorsett

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  1. By Austin Sullivan, Charles Gilmur, and Maureen Dorsett

  2. History • Founded in 1901 by Charles R. Walgreen, Sr. • Original store measured only 50 ft. by 20 ft in size in Chicago’s south side. • Was known for getting people their prescriptions before hanging up the phone. • By 1929 there were 525 stores and they were continually growing. • Milkshakes and Cookies for 20 cents gave Walgreens huge amounts of publicity • By 1984 Walgreens opened its 1,000th Store.

  3. News • Did not quit the selling of cigarettes, regardless of CVS’s choice to stop. • Including Hepatitis-C treatment as an option for care. • Pharmacist who refused to sell Plan B got fired and sues Walgreens. • Partnership with Inovalon brings big data analytics to Walgreens.

  4. Strategy Change • Shift from location emphasis • Focus on differentiation • Customer Satisfaction/engagement • Shift to single point of patient care • Maximize human capital

  5. Was It Successful? • Yes! • 2014 saw a 66.1% increase from 2013 earnings • Sales up 5.9% • Prescription sales up 7.3 % • Customer engagement went from 25th percentile to 95th!

  6. Relation to Class • Reframing retail strategy • Adjust to changing environment • Economy, competition, government

  7. Strengths • Market position • Brand equity for quality and convenience • Superior locations • Leader in innovation and technology

  8. Weaknesses • Inability to set itself apart from competitor prices • Stores are often cluttered and don’t feel convenient • Pharmacy is inconvenient to get to

  9. Opportunities • Aging of the baby boomer population • Demand for prescription drugs is increasing • International expansion • Pushing non-pharmacy merchandise

  10. Threats • Intertype competition • Bigger competitors have much more SKUs • Vulnerable to laws and regulations due to their heavy reliance on prescription drugs • Shortages of pharmacists in the future is predicted

  11. Sources • http://www.zacks.com/stock/news/117623/Q1-Earnings-In-Line-at-Walgreens • http://www.ey.com/GL/en/Industries/Life-Sciences/Walgreens-strategic-transformation • http://www.strategy-business.com/article/00195?pg=all • http://www.mayaavi.com/2013/10/changing-structures-and-behaviors-at.html • http://acraretail.org/documents/Katy_Mullis_-_Walgreens_SWOT_Analysis.pdf • http://www.geekosystem.com/walgreens-stills-sells-cigarettes/ • http://online.wsj.com/article/PR-CO-20140217-905109.html • http://www.twst.com/update/38141-walgreen-company-walgreens-brings-big-data-analytics-to-healthcare-clinics-through-expanded-relationship-with-inovalon • http://articles.chicagotribune.com/2014-02-05/business/chi-walgreen-cigarettes-20140205_1_tobacco-sales-cvs-caremark-walgreen-co • http://www.walgreens.com/marketing/about/history/default.jsp

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