Walgreens is a leading pharmacy chain, mail service pharmacy. The Company was established in 1991 in Chicago, Illinois, and has its headquarters located in Deer field, Illinois. It has since been expanding and its one of the two largest leading drug store chains in the United States, receiving more than five million customers per day. It has also operating a network of more than 5,500 branches in forty-seven states, and the number will soon increase as the company is still working on opening more branches every day, making it one of the most successful pharmaceuticals companies in the world. Though, the company is faced with major competitors for instance CVS who has the same number of customers as them and even has more number of stores, Walgreen still remains the market leader and is unbeaten when it comes to profits, profits per square foot, prescription sale per store and newly built stores ( James, 2006). The company over the years, has successfully met the demands of its customers, thus the need to analyze its achievements and threats politically, economically, socially and technologically.
PEST analysis is an “audit of an organization’s environmental influences with the aim of using the information to guide strategic decision making.” (Dictionary of Human Resource Management, p. 270)
Political analysis
The company is usually faced with threats of law suits due to the nature of pharmaceuticals, recently the Walgreen pharmacists were fired for refusing to feel the plan B prescription forcing the violation of the Illinois Health Care Center right of conscience act that prohibits any employee from retaliation based on stemming from his or her own conscience. They also came into the political opposition over their plans to open a Take care clinic in one of its Boston stores.(Hamilton, D, P. 2008).
Economic Analysis
The company’s position as the market leader in distribution prescription drugs has several opportunities to capitalize on their reputation in terms of nutrition, and basing on this Walgreen can expand its product mix into health segments for instance fresh fruits, vegetables and organic products.
The company’s focus on customer satisfaction has caused them to outsell number three Rite Aid by over thirty billion. Close rivals CVS have also trailed behind in sales. The company is also known for its superior and stand-alone locations which creates for them exciting new opportunities as they try to establish themselves as a neighborhood pharmacy.
Social Analysis
The company established a Walgreen’s Health Services in 1991 to provide customized services such as pharmacy benefit management (PBM), home-based care, among other specialized pharmacy services. The primary aim of the company, namely Walgreens Health Initiatives, is well established with a client base of more than 400 client groups ranging between health plans, employee groups, third parties as well as other corporate clients. With a retail network in the excess of 63,000 pharmacies, the company covers of about 13.5 million persons in prescription insurance benefits.
The company has also prioritized its customer’s needs through expanding their stores in places convenient to the customers, it also responded well to changing needs of the customers demands and introduced a fashion jewelery line whose collection included the most demanding styles.
Technological Analysis
The company has demonstrated that they are true leaders by using Radio Frequency Identification( RIFD) to analyze the effectiveness of store displays. This has also allowed them to watch the status of in store displays for all the stores.
The company has embraced corporate social responsibility and has made strides in cleaning the environment, especially in communities where its stores are located, the company in conjunction with ImaginIt has endeavored to bring solar power technology to two distribution centers and 100 out of the 6,200 stores. The effort has notably reduced the amount of electricity brought from external sources. This in turn means that the distribution centers in California generate between 20% and 50% of their own electricity from the solar power system. Walgreens is also in the process of monitoring the scenario of energy saving lighting equipment in its stores and has also removed environmentally unfriendly air fresheners from their shelves and also by selling products made from recycled boxes.
References
- Dictionary of Human Resource Management; PEST analysis. Business Source Premier Oxford University Press. 2001, pp. 270-270.
- James, F. (2006). Walgreens, AARP join to reach patients. Drug Store News
- Hamilton, D. P. ( 2008). BNET Health care. CBS Interactive Inc