y create more public awareness, but will also help increase the sales revenue of the company.Threats Adverse government policies in Arkansas. Walgreen Company is filing a lawsuit against the state to remedy the discriminatory pricing. The competitive pressures from two strong competitors, Rite Aid and CVS. Focusing on growth and customer convenience, Walgreens plans to remain one step ahead of them.Walgreen Company is in a good market position. This company keeps a watchful eye on the opportunities and the threats that the external environment can offer. For this reason and more, Walgreen Company remains ranked the number one in the largest drugstore chain, based on the previous 12-month sales. Internal Strength AnalysisDetermining a firm's internal strengths and weaknesses is key to determining where to focus the company's efforts and in determining strategy for the company. The key is to maximize the effects of the strengths of the company and work to fix the deficiencies or weaknesses in the company. A strength is something a company is very good at doing or a characteristic that gives it enhanced competitiveness. (Thompson 1998)After analyzing Walgreens, following is a list of the key strengths the company has to offer (Charles Schwab, 2000).Financial StrengthWalgreens’ key asset is its financial strength. This is seen by looking at the key ratios that indicate a company's profitability. The managers at Walgreens are successfully converting shareholders' equity, assets, and invested capital into net earnings. This is evident when comparing Walgreens’ financial performance to the industry average. Following is a table outlining Walgreens’ financial performance over the last year compared to the industry.WalgreensIndustry AverageReturn on Equity17.9% (19.7)12% (18.2)Return on Assets10.7% (11.5)4.7% (9.1)Return on Invested Capital17.9% (17.2)7.2% (14.5)The key points to note from this graph...
