Walgreens Future Trends
Walgreens Pharmacy operates in an Oligopoly market structure. The retail pharmacy environment also has the Oligopoly characteristic of significant entry barriers. The barriers are restriction of ownership and restriction of where the business can be established (Walgreens). The ownership barriers are established by the government and state only Pharmacists or an incorporated company that has directors and shareholder members that are registered pharmacists are allowed to open and own a pharmacy. Licensed pharmacists are required to be on duty during the hours of operations.
Current Economic Trends
Walgreens faces many challenges. In the face of a slowing economy families are making …show more content…
Depending on the product or service measured by Walgreens the price elasticity will vary as the price will change and demand for the product or services will change over time. As new medications become available the consumers may increase the demand for the products. Price will vary based on many factors. As the economy continues to change the types of products families are buying may be changing based on needs and necessity or want and desires. Individuals and families are trying to trim their budgets and will evaluate the true need to purchase a specific item or extras when times are touch. This will have an effect on the price elasticity of demand, related to Walgreens operations.
In general, the future looks positive for Walgreens. Of the pharmacy chains, Walgreens continues to expand in order to meet the increasing demand. Walgreens is setting themselves apart from the competition through two methods. Consistently offering substitute over the counter drugs at a more lucrative price. Additionally, Walgreens is offering more high quality products that are not available in stores like CVS. These products include beauty supplies and small electronics.
Even though competitors are growing, so is Walgreens because of the baby boomer generation requiring more pharmacy needs. But by offering additional products, and making it more convenient for the consumers, Walgreens is able to grow at a much more rapid pace than their