ontinues to build new stores, the strategic vision as well as the concentrated growth strategy will be applied. As the future approaches, it is important to focus on core compenticies, and by concentrating on the current retail strategy Walgreens will benefit. Walgreens does however plan to improve upon the services and selection in the current convenient shopping area, but keep their main focus as a retail drugstore chain. Following are the key advantages in continuing this concentration growth strategy and potential disadvantages.Advantages (growth concentration):The main reason to continue with this strategy is momentum. Walgreens has assembled an experienced and educated upper management team to guide the company through a high growth mode. The company currently operates 3000 stores and has set a goal of 6000 stores in operation by 2010. The company's past records of growth and profitability demonstrate that this strategy is effective and deviation from that would be destructive. Additional reasons to continue this strategy include: Growth will lead to increased market share, which leads to stability, and will make Walgreens a more powerful player in the retail drugstore industry. As the volume of products expands, so does the economy of scale, which will contribute to higher profit margins. Growth strategy capitalizes on the shift in the demographics in this country. As the baby boomers near retirement, the requirements for medical and pharmaceutical care increase dramatically.Disadvantages (growth concentration):While the future provides a positive outlook for Walgreens, the growth strategy also provides some disadvantages, these include: Increasing debt to fund store openings. Currently, the company is funding expansion from current revenue and not incurring any additional debt. To reach the store count goal by 2010, however, might involve taking on some debt. A shortage of emplo...
