Walgreens Case Study

3267 Words 14 Pages
Register to read the introduction… Not only does Walgreens compete head-to-head with CVS/Caremark, a relationship which will be discussed in more detail later on, but it also has to contend with large scale discount retailers such as Wal-Mart and Target. In 2006, Wal-Mart rolled out its $4 generic prescription program for 30 day prescriptions and $10 generic prescription program for 90 day prescriptions (Boulton, 2006). Walgreens tried to counter this by offering a $12 generic prescription program but individuals have to pay $20 and families have to pay $35 to enroll in their program while similar programs at other pharmacies are free (Walgreens Prescription Savings Club Overview). These types of programs pose a serious threat to Walgreens because as more consumers visit large discount retailers like Wal-Mart for other merchandise, they will also use Wal-Mart to buy prescription drugs due to convenience. Consumers buying prescription drugs from other countries pose a serious threat to Walgreens as well. Advances in pharmaceuticals have greatly transformed health care over the years, and although pharmacies have introduced some low cost alternatives, the cost of prescription drugs continues to rise. Rising pharmaceutical and prescription costs have led consumers to shop for drugs online and in other countries. In Canada, Mexico and other countries, …show more content…
(2008, November 17). 2008 Annual Report. Retrieved June 18, 2010, from Walgreens: Investory Relations: Annual Reports/Proxies: http://investor.walgreens.com/annual.cfm
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Walgreens Co. (2009, October 15). Walgreens Announces $2 Billion Share Repurchase Program as Part of New Capital Allocation Policy. Retrieved June 20, 2010, from Walgreens: Newsroom Info: Press Releases: http://new.walgreens.com/article_display.cfm?article_id=5227
Walgreens Prescription Savings Club Overview. (n.d.). Retrieved June 3, 2010, from Walgreens:

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