Strengths And Swot Analysis: SWOT Analysis Of Walgreens
Strengths and weaknesses
Walgreens, as mentioned before, is one of the leading examples of success within the drug store industry. A continuous need for improvement and adaptation to the changing market keeps Walgreens alert and attentive, in step with customer wants, which serves as one of its major strengths. The past 3 decades for Walgreens have been those of growth and exceeding competitive sales.
The use of technology incorporated in Walgreens store operations allows the company to receive and analyze real-time sales data and customer interaction. Systems such as the POS (Point of Sale) and RFID (Radio Frequency Identification) generate up-to-date information on impact of certain store displays on sales and record marketing data needed to maximize profits. In order to serve customers more effectively, Walgreens offers convenient services online, such as photo printing and prescription call-ins. The implementation of technology as a tool for tracking data and servicing is another strength of the company.
Walgreens offers a loyalty program to its customers to further improve on customer satisfaction. The reward program, called Balance Rewards, is a point-based system that gives discounts and …show more content…
Using a customer rewards program to offer coupons and discounts builds loyalty to that company’s brand and image. This incentive strategy has worked well for both companies. However, they differ in the way each one works. At CVS, when a customer purchases multiple items in one transaction, the reward points/ coupons are split amongst the items within the one transaction. The customer receives more incentive with each purchase whereas at Walgreens, the reward is based on the number of transactions only. A customer can purchase the same number of items in each store, but receive more reward points/ coupons at