2. 1901 – Charles R. Walgreen opened first Walgreens store in
Chicago
1913 – 5 Walgreen drugstores. Introduced line of drug
products
1920 - 44 stores with an annual sale of 1.2 million dollars.
1950 – Invested in computer inventory based system and bar
code scanning
2010 – With 7541 store, Walgreens is the largest drugstore
chain in the United States with drugstores across 50
states, the District of Columbia and Puerto Rico
3. • Deepest, broadest multi-
channel platform for
pharmaceutical distribution
Integrated
Channel Diversity
• Products and Services
Innovation
4. Specialty Pharmacy - McKesson’s, Cardinal Health’s,
SpecialtyScripts subsidiary, Medmark, Schraft’s
Home Health Care - OptionCare, CuraScript Infusion from
Express Scripts, IVPCARE, Home Pharmacy of California
Work Site pharmacies - I-trax - Whole Health Management
(BMW, Lowes, Toyota)
Long Term Care – SeniorMed
Retail Clinics - Take Care clinics – 358 locations
6. First drug store chain to use –
◦ Child resistant prescription
◦ Satellite technology to connect pharmacy systems
◦ Non-English prescription drug labels
Innovative contracting and network models –
◦ July 2010 - Challenge established PBM business model
◦ Direct-to-payer Strategy
◦ Prescription solution for Caterpillar, Delta
Organic growth vs. acquisition
◦ Superior standalone locations
◦ Easy to add 24 hr/drive thru, 30% more revenue.
Emphasis on technology to improve efficiencies and customer
service.
7. Disrupt traditional PBM business model
◦ Eliminate Intermediary
◦ Key players - CVS Caremark (CVS), Express Scripts (ESRX),
and Medco Health Solutions (MHS))
Caterpillar deal
◦ Caterpillar expects to see double-digit savings in its
pharmacy costs for year 2010
Walgreens-Delta deal
◦ This deal to add further momentum to more innovative
contracting and network models
Walgreen to sell its PBM business (Oct, 2010)
8. Rival – Strong
◦ CVS Caremark, Rite Aid, Wal-mart and online rival Drugstore.com
pose a strong pressure
Substitute – Medium
◦ Alternate therapy, surgery, online pharmacy
Buyers – Strong
◦ Large-volume government and managed care organization pose
strong pressure
Suppliers – Low
◦ As a dominating player, Walgreens has a strong buying power
New Entrants – Low
◦ Established network of 7000+ stores pose a barrier for new entrants
12. • Aggressive acquisition vs. organic growth
• Focus on online, social media, mobile
revolution
Aggressive market
coverage strategy
• Reevaluate existing cost base
• Consolidate operations, reduce inventory
and items in the store
Cost Structure
Reengineer
• C&D (connect and develop) vs. R&D
• Systematic Innovation, Solution sourcing –
Proprietary, Suppliers, Open networks
Innovate current
Innovation Process
Editor's Notes
Walgreens chain began in 1901, Chicago, by Charles R. Walgreen, Sr
1913, there were five Walgreen drugstores
also began to make his own line of drug products and was then able to control the quality of the items and sell them at lower prices
1923, the company opened stores outside of residential areas and also introduced the malted milk shake in 1922.
1920s, there were about 44 stores with an annual sale of 1.2 million dollars.
1930, there were 397 stores in 87 cities with annual sales of 4 million dollars.
The company did not really suffer from the Stock Market Crash and Great Depression. By 1934, Walgreens was operating in 30 states with over 601 stores.
1939, his son Charles R. Walgreen Jr. took over and ran the chain until his retirement
1950s, and brought the company through many modern initiatives, including the switch to a computer inventory based system (bar code scanning).
1986, it acquired the MediMart chain from Stop & Shop.[8]
2010 - is the largest drugstore chain in the United States.[4] The company operates 7,541 drugstores across all 50 states, the District of Columbia and Puerto Rico
SeniorMed -
first drug store chain to use child resistant prescription
consumer goods and services
Pharmacy
health and wellness services in America through its retail drugstores,
Walgreens Health Services division and Walgreens Health and Wellness division.
Walgreens Health Services - prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager)
Walgreens Mail Service Inc.,
Walgreens Home Care Inc.,
Walgreens Specialty Pharmacy LLC
SeniorMed LLC (a pharmacy provider to long-term care facilities).
Walgreens Health and Wellness division includes Take Care Health Systems.
Walgreens has 7,507 drugstores as of April 30, 2010.[5] Walgreens was founded in Chicago, Illinois in 1901, and has since expanded throughout the United States. Its headquarters is located in the nearby suburb of Deerfield, Illinois.
Substitute – Medium – walgrees also has strong online presence.