Case Study Walgreens
2. On Competition – The Five Forces & The Blue Ocean
a. We have said that competition forces society to be better by providing superior value. Identify and discuss your team company’s competitive advantage and core competency – in essence, the magic sauce that makes the company stay in the game. Generally, competitive advantage is defined as an advantage that a company has over its rivals, allowing it to generate greater sales or margins and sustain more consumers than its competition. It is difficult for competitors to neutralize the strengths once the firm can steadily retain the competitive advantage. The key competitive advantage in Walgreens is that the corporation is dedicated to provide excellent customer experiences …show more content…
First and foremost, the threat of a new entrant is moderate to Walgreens. In the drugstore industry, the barriers to entry within the sector are relatively low because a small pharmacy only requires a small storefront, a pharmacist, and a license. On the other hand, Walgreens is one of largest pharmacy in America and it is possible that the company and CVS have saturated the drugstore industry in specific locations; therefore, the threat of a new pharmacy competitor is minimal. Based on the above-mentioned factors, the influence of new entrant is moderate to the …show more content…
Furthermore, red ocean strategies consider that a market’s structural situations are provided and the companies are forced to compete. In essence, to maintain the organizations in the marketplace, business people have to establish advantage and strengths over the competition and strive to do better than competitors. Therefore, once more new entrants embark in the same industry; the strategy will narrow the market space and reduce overall profits. On the other hand, blue ocean strategy indicates that market boundaries and industry structure are not offered and can be rebuilt by the actions and beliefs of industry participators. The authors call it “reconstructionist view.” In addition, blue ocean strategy represents an uncontested market space where corporations can create new demand and simultaneously pursue high product differentiation and low cost (W. Chan Kim and Renée Mauborgne,
a. We have said that competition forces society to be better by providing superior value. Identify and discuss your team company’s competitive advantage and core competency – in essence, the magic sauce that makes the company stay in the game. Generally, competitive advantage is defined as an advantage that a company has over its rivals, allowing it to generate greater sales or margins and sustain more consumers than its competition. It is difficult for competitors to neutralize the strengths once the firm can steadily retain the competitive advantage. The key competitive advantage in Walgreens is that the corporation is dedicated to provide excellent customer experiences …show more content…
First and foremost, the threat of a new entrant is moderate to Walgreens. In the drugstore industry, the barriers to entry within the sector are relatively low because a small pharmacy only requires a small storefront, a pharmacist, and a license. On the other hand, Walgreens is one of largest pharmacy in America and it is possible that the company and CVS have saturated the drugstore industry in specific locations; therefore, the threat of a new pharmacy competitor is minimal. Based on the above-mentioned factors, the influence of new entrant is moderate to the …show more content…
Furthermore, red ocean strategies consider that a market’s structural situations are provided and the companies are forced to compete. In essence, to maintain the organizations in the marketplace, business people have to establish advantage and strengths over the competition and strive to do better than competitors. Therefore, once more new entrants embark in the same industry; the strategy will narrow the market space and reduce overall profits. On the other hand, blue ocean strategy indicates that market boundaries and industry structure are not offered and can be rebuilt by the actions and beliefs of industry participators. The authors call it “reconstructionist view.” In addition, blue ocean strategy represents an uncontested market space where corporations can create new demand and simultaneously pursue high product differentiation and low cost (W. Chan Kim and Renée Mauborgne,