Alternatives for Walgreens Drugstore Strategic Choice Evaluation

Alternatives for Walgreens Drugstore

strategic choice evaluation paper. Please selected organization ( Walgreens) research .

Best value discipline, generic strategy, and grand strategy

The best value discipline for Walgreens is that of consumer intimacy. This means that the company will tailor its products and services to meet the needs of the refined customer. This can be seen in the company's strategy of incorporating various other items into their drug store. For example, the company recently introduced ink-jet cartridge refilling stations in the drug stores so that their stores can feel like office stores inside the drug stores.

The generic strategy of the company should focus on several items. First is the overall cost leadership. This involves the company setting up a system that achieves the highest economies of scale through a low cost distribution system. The company should also introduce policies that institute tight controls on cost and structure the organization in the best way to maximize cost savings M. Porter, 1987.

The processes in the company also need to be reengineered in order to optimize savings and also make sure the appropriate skill level is utilized for each level. The generic strategy of cost leadership has several risks since it will lead to the development of strategies which are quite easy for competitors to imitate M.E. Porter, 1998()

The grand strategies of Walgreens drug store that are chosen are that of horizontal integration and market development. Through horizontal integration, Walgreens will be able to acquire competitors thus reduce the competition and also achieve greater competitive advantage. Through market development, the company will be able to attract other new markets through expansion of their stores. This is the strategy that has always been in use in Walgreens and has led to the currently large number of stores. It helps to increase competitive advantage, attract new customers and to increase revenue and profits.

Strategy recommendations

In order to remain a success as it has always been, Walgreens needs a long-term strategy that incorporate the issues of profitability, productivity, competitive position, employee development, technological advancement and corporate social responsibility. The strategy needs to balance the four items in the balanced scorecard. These are the financial goals of the company, the company's customers, learning and growth and finally the internal business process. The company must strive to deliver superior value to their customers.

The company also needs to combine this long-term strategy with the grand strategies of horizontal integration and market development. The strategy of market development is usually the least risky of all grand strategies and at the same time provides huge benefits for the organization. It also involves integration of other aspects such as channels of distribution, promotion and advertising which are important in ensuring the new market is well aware of the products and services on offer in Walgreens as well as of the brand itself. The strategy of horizontal integration, on the other hand, eliminates competitors and provides Walgreens with access to new markets and market segments.

This also needs to be combined with the generic strategy of cost leadership. This helps to improve the efficiency of the products and services on sale at Walgreens through capitalizing on economies of scale, implementation of cost-cutting measures such as technological advancement, reduction of workplace stress and other overheads and expenses. Through low cost leadership, Walgreens will be able to provide its products and services to consumers at prices that are much cheaper than most other competitors while at the same time not compromising its profit margins.

This strategy needs to be coupled with other strategic management techniques such as the development of a company vision and mission statement which portrays the future of the organization and where it needs to be. The vision will help to give a clear picture of the future of the organization and the course of its business activity. It acts as a powerful motivator and helps to keep the organization moving forward in its intended direction. The Walgreens mission will help to identify the scope of the company, its operations as well as to describe its products, market and technological areas of thrust which reflect the priorities and values of the decision makers.