Walgreens SWOT & PESTLE Analysis

Strengths

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.

Opportunities

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.

Environmental

1. Sustainable operations and reduction of carbon footprint: Healthy environment help in thriving of healthy communities and Walgreens Boots Alliance is committed to environmental sustainability going beyond the compliance norms and set up new benchmarks. To promote sustainability and reduce plastic usage, Walgreens offers green shopping bags for purchase as an alternative which are made of non-woven polypropylene or 80 percent recycled water bottles. The company is also reducing the usage of conventional energy by expanding its renewable energy initiatives including use of solar panel installations at stores and distributions centers.

The unpublished sections of the entire Walgreens Boots Alliance PESTLE / PESTEL analysis is available in the 'Complete Report' on purchase.