Paper Topic:

Swot Case Study

III . Opportunities Threats

The changing demographics of the American population will provide Walgreens with several opportunities to increase their sales . By 2010 the American population over 50 years of age is expected to reach 95 million "SIC 5912 " 2006 . This increase in the number of elderly Americans will provide Walgreens with an increased demand for prescriptions and thepotential to increase sales and revenue in that category . The aging American population will greatly impact the pharmaceutical industry . In 2002 , 30 of Walgreens ' prescriptions and 42 of prescription sales were derived from older

Americans . Recent changes in Medicare plans allow Medicare participants to pay the same no matter where they shop , which will benefit not only Walgreens , but other companies that sell prescription medication , as well as the manufacturing companies of prescription drugs . This category is especially important as pharmacy sales rose 12 in the last quarter significantly more than the 5 .2 increase in non-pharmacy sales (Miller 2006

Prescription drugs currently constitute nearly 64 of Walgreens sales (Biesada , 2006 . Despite this , Walgreens should also recognize the opportunities that lie in non-pharmacy related goods . Though Walgreens currently sells several goods other than prescription drugs , the overall company sales do not reflect successful sales in these categories According to the National Association of Chain Drug Stores the greatest growth opportunity for stores like Walgreens is increasing non-pharmacy purchases that existing shoppers make . It is interesting to note that the number of customers shopping at drug stores is generally declining Even so , the frequency...

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