Walgreens’ business strategy of the past to have the most convenient and largest number of store locations has helped position it as one of the leading providers for pharmaceuticals in the U.S.. The industry itself shows consistent growth and is a market that isn’t going to disappear in the foreseeable future. However due primarily to external factors, Walgreens’ market position is being threatened as competitors continue to take market share away from what once was considered the largest pharmaceutical provider. The company has had to shift its strategy from solely relying on convenience and the number of locations to one that provides customers with a quality customer experience that they can’t receive from any of Walgreens’ competitors. Walgreens is banking on this new business strategy of customer experience to distinguish itself from its current and up in coming sources of competition as it goes forward. Recognizing that a shit in strategy was necessary reflects well on executive management’s ability to adapt to the changing environment.
This change will also include incorporating Walgreens’ new strategic alliances to position itself more competitively in the future. The newly acquired alliances with AmerisourceBergen and Alliance Boots gives Walgreens the potential to reclaim itself as the largest pharmaceutical provider, not only in the U.S., but internationally as well. These alliances will also help Walgreens with its bottom line, by reducing costs for purchasing and distributing its products. The future looks bright for Walgreens and this is reflected as speculators have aggressively driven Walgreens’ stock price up in the last year, following these contractual alliances. Despite the unfavorable competitive landscape of pharmaceuticals, Walgreens has positioned itself well to compete in a steadily growing industry. Recent moves by Walgreens inspire confidence in its growth potential and support the conclusion that it is a company worth investing in.
This change will also include incorporating Walgreens’ new strategic alliances to position itself more competitively in the future. The newly acquired alliances with AmerisourceBergen and Alliance Boots gives Walgreens the potential to reclaim itself as the largest pharmaceutical provider, not only in the U.S., but internationally as well. These alliances will also help Walgreens with its bottom line, by reducing costs for purchasing and distributing its products. The future looks bright for Walgreens and this is reflected as speculators have aggressively driven Walgreens’ stock price up in the last year, following these contractual alliances. Despite the unfavorable competitive landscape of pharmaceuticals, Walgreens has positioned itself well to compete in a steadily growing industry. Recent moves by Walgreens inspire confidence in its growth potential and support the conclusion that it is a company worth investing in.