Strategies Used by Rite Aid Pharmacy
Leah Morris
MGMT 441
* Rite Aid Pharmacy * Headquarters: Camp Hill, Pennsylvania * CEO: John T. Standley * Mission Statement: To be a successful chain of friendly, neighborhood drugstores. Our knowledgeable, caring associates work together to provide a superior pharmacy experience, and offer everyday products and services that help our valued customers lead healthier, happier lives. * NYSE, RAD, $1.90 (Taken March 28, 2013)
Business Strategy Analysis
Rite Aid Pharmacy is positioning itself in the national drug retailer industry as a cost leadership company. The cost leadership strategy focuses on “gaining advantages by reducing costs below those of competitors” (Barney & Hesterly, 2012). Firms pursuing a cost leadership strategy tend to emphasize their reliability and low costs. Rite Aid has taken several major strategic actions to execute this strategy.
Over the years Rite Aid has worked on staying a cost leadership company. As early as 2004, Rite Aid presented "BOB" (Build Our Business) as their retailer annual Management conference and Trade Fair to more than 5,000 store associates, store, regional and headquarters managers. “BOB” was portrayed by an actress representing a Rite Aid customer. The woman playing “BOBs” goal was to convey the importance of customer service to Rite Aid. The conference was created to train employees about Rite Aid’s customer service and merchandising strategies. The first day of the conference showed clips of “BOB” not receiving the level of customer service from Rite Aid that they were striving for. This was shown as the conference’s theme, "Make a Difference. Make it Personal." This was to reiterate to employees that "people are loyal to people and experiences, not the store itself," The CEO, Mary Sammons, believed that there are three things that can happen to give a customer a bad opinion of Rite Aid: “1) a perceived lack of respect for the customer 's time; 2) missing the opportunity to engage
MGMT 441
* Rite Aid Pharmacy * Headquarters: Camp Hill, Pennsylvania * CEO: John T. Standley * Mission Statement: To be a successful chain of friendly, neighborhood drugstores. Our knowledgeable, caring associates work together to provide a superior pharmacy experience, and offer everyday products and services that help our valued customers lead healthier, happier lives. * NYSE, RAD, $1.90 (Taken March 28, 2013)
Business Strategy Analysis
Rite Aid Pharmacy is positioning itself in the national drug retailer industry as a cost leadership company. The cost leadership strategy focuses on “gaining advantages by reducing costs below those of competitors” (Barney & Hesterly, 2012). Firms pursuing a cost leadership strategy tend to emphasize their reliability and low costs. Rite Aid has taken several major strategic actions to execute this strategy.
Over the years Rite Aid has worked on staying a cost leadership company. As early as 2004, Rite Aid presented "BOB" (Build Our Business) as their retailer annual Management conference and Trade Fair to more than 5,000 store associates, store, regional and headquarters managers. “BOB” was portrayed by an actress representing a Rite Aid customer. The woman playing “BOBs” goal was to convey the importance of customer service to Rite Aid. The conference was created to train employees about Rite Aid’s customer service and merchandising strategies. The first day of the conference showed clips of “BOB” not receiving the level of customer service from Rite Aid that they were striving for. This was shown as the conference’s theme, "Make a Difference. Make it Personal." This was to reiterate to employees that "people are loyal to people and experiences, not the store itself," The CEO, Mary Sammons, believed that there are three things that can happen to give a customer a bad opinion of Rite Aid: “1) a perceived lack of respect for the customer 's time; 2) missing the opportunity to engage