COMPANY PROFILE -Walgreens Boots Alliance
Business Sector :Retail, Healthcare
Operating Geography :United States, Europe
About Walgreens Boots Alliance :Walgreens Boots Alliance, Inc. is a United States based holding which owns Walgreens, Boots and operates in beauty and personal care retail; and pharmacy wholesale and retail distribution sector. It was set up in the year 1901 by Mr. Charles R Walgreen. Walgreens Boots Alliance was formed as a result of merger between Walgreens Co and Alliance Boots in the year 2014. The company employs more than 385,000 people as of August 2017.
Walgreens Boots Alliance Revenue :
US$118.2 billion – FY ending 31stAugust 2017 (y-o-y growth approx. 0.7%)
US$117.4 billion – FY ending 31stAugust 2016
Competitive Analysis of Walgreens Boots Alliance
|1. Omni channel presence |
2. Strong social campaigns and Ad campaigns
3. Strong brand equity in USA and other countries in Europe
|1. Presence restricted in a few markets|
2. Poor social media reach
3. Weak household, grocery segment
|1. Expansion to foreign markets either through |
2. Merger with rite aid
3. Backward integration
|1. Consolidation in the industry|
2. Issue over reimbursement rates
3. Threat of new entrants in this segment
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Detailed SWOT Analysis of Walgreens Boots Alliance
1. Strong presence across North America and Europe: Walgreens has a strong store presence all over USA and some European countries. Walgreens is the market leader in the United States having close to 8,200 stores across Walgreens and Duane Reade divisions. According to the company its stores are easily accessible to the populace with 76% of the population of the United States living within five miles of a Walgreens or Duane Reade retail pharmacy. Merger between Walgreens and Alliance Boots has been the mode of entry for Walgreens in the European market. In the Pharmaceutical Wholesale segment, they operate under Alliance Healthcare brand to supply medicines, healthcare related products and services to several pharmacies, hospitals, health centers and doctors through its vast network.
2. Social campaigns and advertisements: Strong social campaigns like the “Get a Shot. Give a Shot” which is an immunization drive initiative conducted in association with United Nations at Walgreens stores or the campaign about Red Nose day. Such campaigns make Walgreens very popular and helps win customer’s loyalty.
3. Omni-channel access to consumer goods and services: Walgreens provides enhanced Omni-channel access to consumer goods and services to its customers. In the Retail Pharmacy International segment Walgreens operates through Boots. Walgreens has a website and a mobile app to enable the consumers with the option of online ordering. The mobile application which is integrated with the website allows customers refill prescriptions through scan technology and also perform other functionalities such as ordering photo prints, shopping for products and clipping coupons. Walgreens has selected E2open, a comprehensive Supply Chain Operating Network provider to enhance Sales & Operations Planning for its Global Brands supply chain. This will further enhance the Omni-channel capabilities of Walgreens Boots Alliance.
1. Expansion to foreign markets: Walgreens has already entered into a part of the European Market. With liberalisation in most economies, Foreign direct investments are encouraged. Walgreens could leverage this to expand into foreign markets that majorly consist of unorganised health retail sector.
2. Merger with Rite Aid to aid expansion and bring in synergies: The health and beauty retail industry could consolidate further with Walgreens acquiring the No. 3 in the US market, Rite Aid. The total number of stores would be 12,700 out of which Walgreens has plans to divest 1000 stores. It would reinforce Walgreens’ store network in states where Rite Aid has a strong presence and help Walgreens to reap benefits of the strong brand equity of Rite Aid in those areas. Further the company expects to realize $300 million in annual synergies within three years of the post-merger integration from areas such as procurement, cost savings and miscellaneous operations.
3. Backward integration to strengthen value chain: Walgreens can introduce more private labels. That would give the company more control over its supply chain, quality of products, cost and reduce the dependence on the suppliers. In addition to this, Walgreens can reduce its cost of procurement of medicines through its strategic alliance with Amerisourcebergen in 2016. The alliance with Amerisourcebergen can also be leveraged to pursue integrated solutions for global clinical trial logistics.
The unpublished sections of the entire Walgreens Boots Alliance SWOT analysis is available in the 'Complete Report' on purchase.
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