Walgreen Co.: The US Drugstore Chain's Survival Strategies Against the Drug Wars


Code :FMB0002

Year :

Industry :Retailing

Region : USA

Teaching Note: Not Available

Structured Assignment : Not Available

Buy This Case Study

<< Previous

Walgreens: An Edge in the Drugstore Business
CharlesWalgreen, the founder ofUS’s top chain of drug stores, opened the firstWalgreen pharmacy store atChicago in 1901. Ever since the first storewas opened,Walgreen (the store) had given importance to convenience of its customers and had looked for innovativeways for increasing its customer base. One such examplewas the ‘TwoMinuteDrill’ a speedy customer service practice, which the Walgreen store executed. Whenever a customer called Walgreen with an order, Charleswould immediately send his clerk to deliver the prescription to the customer’s place,while he continued talkingwith the customer over the phone. Further, to attract customers, Charles had installed a soda fountain at his store and he also served milk shakes, ice creams and hot food...

Fighting the Mail-Order Operations
Themail order operations in the US pharmaceutical industry had begun as early as in 1946. Themedicine consumers sent their purchase orders to the pharma drug stores throughmails (Box 1).Most of the prescriptions that were ordered by the consumers throughmails were refillable prescription drugs. Refillable prescriptive drugsmeant thosemedicines that were required to be taken on a regular basis such as, for blood pressure and cholesterol. During the 1960s and the 1970s, the ordering of drugs throughmail order was very popular in the US.With the increasing usage of internet during the early 1990s, the pharma consumers started purchasing their regularmedicines by sending e-mails to the pharma stores...

Survival of the Fittest
During the past decade, the annual sales for prescription drugs have increased at an average of 20%forWalgreen compared to an average increase of 13%for the whole industry.29 In fiscal year 2004 alone,Walgreens’ prescription sales grew 17.8%, compared to the mail-order industry’s increase of 18%. The Chairman and Chief Executive Officer of Walgreen, David Bernauer, expected its sales to growat a faster rate during the coming years. “U.S. prescription sales are projected tomore than double in just nine years. Andwe atWalgreens expect ours to double in just about four years—better than any other pharmacy retailer”, said the CEO...

For Case Books Click Here >>

For Case eBooks Click Here >>

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,
E-mail: casehelpdesk@ibsindia.org

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap