Rite Aid Corporation (Case 22) The following is a general environmental analysis of the Rite Aid the business sector of the retail pharmacy industry, with an analysis of Rite Aid. The first section of this report will cover an overview of the trends in technology demographics, economics, political/legal, and social/cultural-global. The second section of this report will cover porter’s five forces, Competitive analysis, internal analysis and alternative strategies. Technology: Smartphones has made our life easier. We can use internet wherever we are. For the growing ranks of on-the-go shoppers who carry mobile smartphones, Rite Aid has launched an official mobile app offering one-click prescription refill scanning, locations and …show more content…
The stock price started dropping and also Rite Aid was in billions of dollars in debt and hundreds of underperforming stores. Rite Aid faces the ongoing challenges of rising health care expenses for its employees, contract raises, and payroll, as wells as the current and building challenges of a slow economy.
Porter’s five points. * Competitive rivalry (high) The competitive rivalry is moderate to high. The major competition is faced from other drugstore retailor that provides similar services. The two major competitors are Walgreen and CVS. These both companies has rapidly expended into this market. The both have more than 14,000 retail locations nationwide. Individually, the two companies have a market capitalization that Rite Aid four times over. * Barrier of Entry (medium) Barrier of Entry power is medium. The primary reasons are because of the issues with regulation, capital requirements, and economies of scale. To open up a new drug store will cost high amount of money and it also depend the type of locations. * Substitute (medium) Substitute power medium. Major substitute is mail-order. Internet has make everyone life easier and people order there medications online and mail-order companies medications can be bought at low cost. * Power of supplier (moderate) Supplier power is moderate. In pharmacy industry there are
Current Industry. The retail drug industry’s 2010 combined annual revenue was $277 billion, according to the National Association of Chain Drug Stores (Drug Store Industry…, 2011, par. 4).The big players in this industry are CVS Caremark, Corp. Walgreen Co., and Rite-Aid, Corp with Wal-Mart and Target developing more of a presence in recent years. According to the article, the drug store industry is very concentrated with the 50 largest companies generating about 70 percent of the industries revenue (Drug Store Industry…, 2011, par. 4). The industry had grown substantially in the last 50 years and will continue to innovate and develop well into the near future.
A resource based view can help determine, and maintain a competitive advantage for Wal-Mart. In order to gain a clear understanding of their advantage, or lack thereof, it is vital that Wal-Mart determine what resources they have available to them. Once these resources are identified they must capitalize on them, and ensure that they provide them with a sustained advantage, and not a temporary advantage. For instance, Wal-Mart might find that there is a manufacturer that is not being used to their full potential, and is able to provide them with fast production and quick delivery of items for a great price. It would be beneficial for Wal-Mart to take advantage of this opportunity, as well as build a long lasting relationship with this manufacturer that will carry them both into the future.
The applicants are morally correct as long as their action promotes their long term interest. If their action produces or will produce for them a greater outcome of good, versus evil in the long hall than any other alternative, than that action is the right one to act on, and the individual should take that to be a moral act. An Assessment of Morality by Ethicsinbusiness.net
CVS, Wal-Mart, Medco Health and Rite Aid are Walgreens’ major competitors. Wal-Mart aggressively competes by its use of the $4 generic prescriptions promotion. CVS employs a similar strategy by offering a 90-day supply of generic medications for $9.99. Medco Health also competes with CVS by offering a 90-day supply of medications for a cheaper price than a customer would pay in-store. As of 2008, Walgreens and its major competitors were measured as follows10:
The competitive environment of a business is the part of a company's external environment that consists of other firms trying to win customers in the same market. It is the segment of the industry that includes all immediate rivals. These are factors that are out of the company’s control, such as when state regulations change and they have to adjust to meet those requirements. To ensure Macy’s Inc. understands the environment they will conduct an external environmental analysis. This would include identifying any opportunities and threats to the firm (Hitt, Ireland, Hoskisson, 2013). One of the opportunities that Macy’s could
b.What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022?
Mirroring its main market competitor, CVS, Walgreens has also added Envision Pharma, a pharmacy-benefit management company, to its portfolio. (CVS acquired Caremark in 2007) (Bells, 2016) Due to previous acquisitions and mergers, Walgreens is currently the most accessible pharmacy retailer in the U.S., servicing 8 million customers each day and filling approximately 894 million prescriptions and immunizations, every year. (Walgreens, n.d.)
“Final call girl’s four by eight-hundred-meter relay” called the official. The Ontario Track girl’s four by eight-meter team trooped up to lane one, in unison. I would not have wanted to be racing with anyone else but my relay family. We had trained all season for this one race. Every workout, asthma attack, tear, and shin splint has lead up to this one race to break a twenty year old school record. As we jogged with the official from the bullpen to the starting line, the crowd had uproars of excitement for the athletes. An immense smile grew across my face, not only from the ecstatic crowd, but from the anticipation to race. I approached the starting line, in the first lane, while my teammates arrayed along the fence with the other second,
* Barriers to Entry. A number of factors allow a pharmaceutical manufacturer to act as a
Companies such as American Apparel can operate in a certain environment that has a formulation and implementation of a strong business strategy that can avoid restricted environmental factors. This will determine the decision making of financial considerations, promotion strategy, organizational structure, and the management style. The environmental awareness is the starting point of environmental analysis. American Apparel has to take in consideration that there are two environmental factors of the internal and external environments.
There can be a number of reasons for a company to go public or private. There are benefits, as well as disadvantages that go along with either course of action (Exhibit 1 for details). When firms decide to go private, they are no longer listed on any stock exchange market. The pressure of keeping accounting regularity and reporting to the public is no longer an issue. Instead, firms can be more flexible to reorganize the business profile as well as the management team. In many cases, shareholders and board members receive very rewarding financial benefits from this transaction. However, in some situations, public firms do not have a choice in the matter, as is the case in a “hostile takeover”.
Avon Corporation In order to begin to understand the industry in which Avon functions as well as the specifics around the introduction of the new EAS drive, I used the 5Cs analysis to outline the company’s current situation. Situation Analysis via the 5Cs:
In this case some big companies dominate the whole industry and as a result the small companies
Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?
MediSys planned a launch of IntensCare which is a new remote monitoring system for the use in hospitals’ intense care units. This is a major launch for the company because it is a $20.5 million investment which is the largest investment for the company. MediSys Corporation is facing many external problems along with experiencing problems internally trying to finish the product by the set deadline. The company is having many issues. The issues consist of dealing with the software development, failure to communicate effectively, and lack of motivating factors.