SWOTS ANALYSIS ON CVS VERSUS WALGREENS

SWOTS analysis on CVS versus Walgreens

SWOTS analysis on CVS versus Walgreens

Introduction

Walgreens was initially based in 1901, in Chicago, as a lone shop company. Today, they are the second biggest chemist string of connections in the territory with roughly 5,200 shops in 45 states; although, they are the foremost in the commerce in periods of sales. In 2005, Walgreens developed 42.2 billion dollars in sales. This number is a milestone in that it brands the 31st year that Walgreens has set a sales record for the industry. At $46 per rectangle base, Walgreens averages two times the sales per rectangle base than their competitors. In lightweight of this achievement, they task 7,000 shops by 2010. (Adams 2008).

 

Strengths

 

Technology:

The thriving implementation of expertise in both the shop and provide string of connections is a genuine power for the Walgreens Company. They have effectively applied the use of wireless frequency identification (RFID) all through its string of connections of stores. RFID permits Walgreens to supervise the influence of sales from exact displays. The scheme will be established through a multi-year deal with Goliath Solutions and will primarily have the participation of fifteen bundled items manufacturers. The RFID scheme, at the POS, notes, in genuine time, precious trading data for example the extent of time and piece is on brandish and where the specific brandish is established inside the store.

 

A Strong Customer Well-Fare Focus:

Walgreens loves the advantages of a lesser shop format with a more singular aim than does a supercenter and thus, is adept to aim on not only convenience but service as well. By starting programs for example their Rx Savings Advisor Walgreens has increased its aim on the aging population(Brigham 2001). This specific program is a device whereby Medicare clients can recognize the most matching Part D prescription design inside their specific region. The Dial-a-Pharmacy” program permits clients to talk with a pharmacist in one of fourteen dialects thereby tailoring its service to come to very broad purchaser groundwork in a very individual way.

 

Weaknesses

 

Growth:

Walgreens develops organically other than through acquisition. Rival competitor, CVS, lately supplemented 1,260 Eckerd pharmaceutical shops to their company's inventory and now, as of this year, outnumbers Walgreens pharmacies. The acquisition of Eckerd, Osco and Save-on shops has granted CVS a powerful foothold in key districts for example Florida, Arizona and California. These are very well liked localities for retirees to settle. Walgreens expends its assets construction its shops from the ground up(Brealey 2000). In evaluation CVS supplemented 1,200 in one latest deal where Walgreens' will only add 390 shops in 2006.(MMR 5/8/06 Walgreens prides itself on its service and personalized care though it jeopardizes its likeness when it goes into the market location by construction its own shops and subsequently going by car unaligned pharmaceutical shops and little chains out of business. They run the risk of alienating the community when the little mom and burst shops proceed out of business.

 

Cannibalizing their own market:

The number of pharmacies in the ...