Walgreens Fiancial Analysis

In: Business and Management

Submitted By ladytmac23
Words 2155
Pages 9
Walgreens Corporations Financial Analysis
Introduction
Walgreens operates 7,907 locations in 50 states, the District of Columbia, Guam and Puerto Rico with over 247,000 employees serving customers. The company has seen an increase in revenues, but an end to its contract to participate in the Express Scripts pharmacy provider network on December 31, 2011 poses a threat to revenues and profits for 2012 and future fiscal periods. This analysis will discuss Walgreen’s business strategy, provide a current financial analysis of the company, risks associated with the company, address prospective analysis of Walgreens and provide a decision on future investments in the company stock.
Business Strategy Analysis
A differentiation strategy serves a small market niche with products that are designed to appeal to the unique preferences and needs of the well-defined group of buyers. Companies that use differentiation strategies often enjoy high degrees of customer loyalty which discourages other firms from competing directly. This strategy usually targets customers who are not concerned about the price. Differentiation can reduce rivalry with competitors, and fight off the threat of substitute product because customers are loyal to company’s brand (Anzeletti, 2009). However, successful differentiation strategies require a number of costly activities, such as extensive advertising. Companies that purse a differentiation strategy need strong marketing abilities.
One good illustration of a company that benefits from a differentiation strategy is Walgreens. Walgreens uses a differentiation business strategy. Walgreens together with its subsidiaries operates a chain of drugstores in the United States. The company strives to offer a merchandise mix in line with this focus, providing customers with one-stop shopping for not only prescription drugs, but also…...

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