Loblaw Case Study Analysis
Executive summary
The purpose of this article is to figure out the most efficient way for Loblaw to open up new business in pharmaceutical industry. We believe that acquisition is the best.
As the leader in retail industry, Loblaw faced its first lost which lasted for five quarters in 2006, due to extreme competition and poor operational performance. Though returned to form after 2007, Loblaw now is facing a more challenging situation—the merge of second and fourth largest retailers, Sobeys and Safeway—in 2012. In order to stay leading, Loblaw decided to enter pharmaceutical industry. In current pharmaceutical industry, Shoppers has the most market share (33%) and the most widely separated locations in Canada. Based on four criteria—rewards, …show more content…
Table of Content
Contents Page
Executive summary 2
Introduction 4-5
SWOT analysis 5-9
Key decision criteria 9-10
Alternatives analysis 10-13
Recommendation 13
Implementation plans 14-15
Conclusion 15-16
Exhibit 1 17
Exhibit 2 17
Exhibit 3 18
Exhibit 4 18
Reference …show more content…
Here is the information of pharmacy in Canada. In 2013, pharmacy and drug store industry in Canada had a size of $33.4 billion. The top three companies are Shoppers, Katz Group Pharmacies Inc. (KGPI) and Jean Coutu Group. Shoppers has a market share of 33.3%, which followed by that of KGPI, 21.9%, and Coutu Group has a share of 8.7% (see Exhibit 2). As the leading company, Shoppers is the licensor of full-service retail and has 1,240 retail drug stores across the whole nation (see Exhibit 3). Its net earnings were $608 million out of sales of $10.8 billion in 2012. Followed by KGPI, which has 460 convenient locations through Canada (Katz Group web, 2014) and Jean Coutu Group, which has 415 physical stores (Jean Coutu web, 2014). When referred to business environment, pharmaceutical is now facing different changes. Currently, the Canada government is carrying out policies that may have negative influences on the pharmaceutical industry. Meanwhile, higher taxation on pharmacy causes Canadian to buy medicines in America, where taxation is lower. On the other hand, Canadian is getting older, which means more funds would be spent on medical purchase. Being a giant in grocery market, how can Loblaw compete to maintain its market share and leadership, and whether there are other methods for Loblaw to expand into pharmacy. Here is the
The purpose of this article is to figure out the most efficient way for Loblaw to open up new business in pharmaceutical industry. We believe that acquisition is the best.
As the leader in retail industry, Loblaw faced its first lost which lasted for five quarters in 2006, due to extreme competition and poor operational performance. Though returned to form after 2007, Loblaw now is facing a more challenging situation—the merge of second and fourth largest retailers, Sobeys and Safeway—in 2012. In order to stay leading, Loblaw decided to enter pharmaceutical industry. In current pharmaceutical industry, Shoppers has the most market share (33%) and the most widely separated locations in Canada. Based on four criteria—rewards, …show more content…
Table of Content
Contents Page
Executive summary 2
Introduction 4-5
SWOT analysis 5-9
Key decision criteria 9-10
Alternatives analysis 10-13
Recommendation 13
Implementation plans 14-15
Conclusion 15-16
Exhibit 1 17
Exhibit 2 17
Exhibit 3 18
Exhibit 4 18
Reference …show more content…
Here is the information of pharmacy in Canada. In 2013, pharmacy and drug store industry in Canada had a size of $33.4 billion. The top three companies are Shoppers, Katz Group Pharmacies Inc. (KGPI) and Jean Coutu Group. Shoppers has a market share of 33.3%, which followed by that of KGPI, 21.9%, and Coutu Group has a share of 8.7% (see Exhibit 2). As the leading company, Shoppers is the licensor of full-service retail and has 1,240 retail drug stores across the whole nation (see Exhibit 3). Its net earnings were $608 million out of sales of $10.8 billion in 2012. Followed by KGPI, which has 460 convenient locations through Canada (Katz Group web, 2014) and Jean Coutu Group, which has 415 physical stores (Jean Coutu web, 2014). When referred to business environment, pharmaceutical is now facing different changes. Currently, the Canada government is carrying out policies that may have negative influences on the pharmaceutical industry. Meanwhile, higher taxation on pharmacy causes Canadian to buy medicines in America, where taxation is lower. On the other hand, Canadian is getting older, which means more funds would be spent on medical purchase. Being a giant in grocery market, how can Loblaw compete to maintain its market share and leadership, and whether there are other methods for Loblaw to expand into pharmacy. Here is the