in the drugstore industry. The continual upgrading of technology that contributes to efficiency will be necessary to remain competitive. Systems are being developed that will enable physicians to send prescriptions on-line to a pharmacy, and software has been developed to manage everything from inventory control to insurance filing. Pharmacies are also impacted by a number of socio-cultural forces, as indicated by the attempted legislation in Maine. Another emerging issue is the use of drugs for practices that have moral implications, such as pregnancy prevention or termination, and assisted suicide. Wal-Mart has refused to carry the new emergency contraceptive called Preven, because it fears boycotts by right-to-life groups. Some pharmacists may refuse to fill certain prescriptions, such as ones for contraceptives, because of moral beliefs. K-Mart’s policy is to fire any pharmacist who refuses to dispense any FDA-approved drug (P. Miller, Betty Dodson.com).The industry analysis will describe the background of the industry, the major business activities, economic forces that impact the drugstore industry and the organization and structure of the industry. There is also a discussion of current conditions that affect the drugstore industry as well as a discussion of factors which will influence future industry performance.Business ActivitiesCompanies in the retail drugstore industry are engaged in the retail sale of prescription drugs, proprietary drugs, and nonprescription medications. Most also sell medical devices, as well as a variety of cosmetics, toiletries, tobacco, novelty items, and snack foods and beverages (Encyclopedia of American Industry). As competition increases, many businesses in this industry are adding more goods and services to the basic activity of filling prescriptions. Some of these services include photo processing, drive-through prescription windows, and 24-hour service. Drugstores are now offer...
