Managing in Troubled Times Case Study

Case Title:

Walgreen Co.: The US Drugstore Chain's Survival Strategies against the Drug Wars

Abstract:
Founded by Charles Walgreen in 1901, Walgreen grew to become the largest drugstore chain of the US, by 2005. Ever since its inception, Walgreen had expanded by opening new retail pharmacy stores and by 2005 it operated over 4,800 stores in the US. Though Walgreen had grown to become the largest chain of drug stores, it had to face many challenges from the mail order operators since the mid 1990s. The competition from the mail order operators had almost changed the business model of the retail pharmacy stores. The customers of Walgreen started purchasing their daily medical requirements, on-line from the Internet sites operated by the mail order pharmacies (also known as the Pharmacy Benefit Managers). To retain its customers, Walgreen started its own on-line drugstore called www.walgreen.com in 2000. Further in 2003, Walgreen initiated the Advantage90 program providing its customers the choice of purchasing from the retail stores as well as from the on-line sites.

Pedagogical Objectives:

• To discuss the growth strategies of Walgreen to deal with the challenges faced by it in adopting its business model according to changing industry trends.

Keywords :  Walgreen Co; Charles Walgreen; Organic Growth; Largest drugstore chain; Competition from mail order system; Managing in Troubled Times Case Study; On-line drugstore; Pharmacy benefit managers; Advantage90 program