To be “My Walgreens” for everyone in America — the first choice in health and daily living … owning the strategic territory of “well.”
Effective elements of the statement:
Graphic - the company’s vision clearly paints a picture of the company becoming the nation's top retail resource for pharmacy and health-and-wellness services and products.
Easy to communicate – the vision is easy understandable, has memorable slogan “My Walgreens for everyone in America”
Feasible – Walgreens already is drug retailing industry leader, so the statement is pretty reasonable and achievable.
Desirable – it is a desirable outcome for the company stakeholders. It will create more jobs, make shareholders richer and customers …show more content…
This means that the drug manufacturer can set the terms of sale. If Walgreens is unable to negotiate, the drug manufactures can sell to other pharmacies. This would lower Walgreens’ profits as consumers will go to the pharmacy that carries the drug they are looking to purchase.
Nonprescription drugs: Power of Suppliers: Moderate
The bargaining power of nonprescription drug manufacturers is moderate. Walgreens can bargain with the suppliers of such drugs as Aspirin or Ibuprofen because there are many companies that manufacture drugs that are comparable to each other in these categories. However, on that same note, if Walgreens removes a prominent brand from their shelves, consumers might refuse to buy a comparable item due to brand loyalty.
General Merchandise: Power of Suppliers: Low
The bargaining power of general merchandise suppliers is low. This is due to the fact that there are many manufacturers of cosmetics, chairs, toys, etc… Walgreens can decide whether to buy these products from company A or company Z. Also, general merchandise is not Walgreens’ main business function because a growing percentage of their sales are based on prescription drugs sales; therefore, they will not lose much market share if they stop carrying some of these products.
Overall bargaining power of suppliers is high because Walgreens core business is selling of prescription drugs.
Based on Porter’s five forces model the