Diagnostic Analysis of Walgreens
Walgreens is one of the largest chain pharmacies in the country as of January 31, 2012 and continues to grow on every corner in the United States. This paper will evaluate this company in a financially based approach and hopefully give some insight on how this powerhouse company continues to be successful in a very competitive market. This paper gives a financial analysis, an accounting issue impacting this company, and a summary of the company.
At the corner of “happy and healthy” or any other corner in a busy town, you’re likely to find your neighborhood Walgreens which is one of over 8,500 stores nationwide. The top selling retail pharmacy in the U.S. was established over 100 years ago in Chicago, IL by Charles R. Walgreen Sr. in 1901 and is now headquartered in Deerfield, IL. Within fifteen years, nine stores were opened and Walgreen Co. had been established. By 1926, the 100th store had been opened and the expansion still continues today. (Walgreens Corporation, 2013) They continue to be one of the leading innovators in the industry and strive to provide faster and safer medication distribution throughout the U.S.
Description and History of Walgreens
Walgreens has grown by purchasing prime property and establishing a prime location in order to seduce customers primarily due to the convenience factor. In the last few years, they have grown by acquiring companies such as locally, USA Drug as well as settling a distribution buyout with AmerisourceBergen which enables them to bargain prices on medications they were getting from another distributor. (Humer & Wohl, 2013) This strategy should enable them to reduce their cost of medications, in turn, enabling them to remain competitive in the market as healthcare changes in the near future. They are hoping for “revenues past the $130 billion range by fiscal 2016”...