Week 5 Section of BP - There are several competitors within...

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There are several competitors within a five mile radius of the location of CC Pharmacy. These competitors include Fry’s Food Store, Walgreens, Wal-Mart, Target, and CVS. Chain pharmacies have much strength and opportunity that will make it difficult for CC Pharmacy to take their stance in the market. Competitor Strengths Chain pharmacies offer stability, familiar brand names, purchasing scale, and an established store base. They also have the added advantage of consistent customer behaviors, growth patterns, and new expansion opportunities such as in-store clinics. The competitive advantage of chain pharmacies lies in their ability to gain market share from the less resourceful independent pharmacies. These are all significant challenges CC Pharmacy will face upon entering the market. (Coffina and Conover, 2010). Competitor Weaknesses Chain pharmacies can get so busy that they run out of medications and customers may have to wait for the next shipment to arrive before their prescriptions can be filled. Also, due to high volume and demand often chain pharmacies can become too focused on dispensing and take less care with patient counseling and other interactions with the customers. Chain pharmacies are working to fix this negative stigma, but are not always successful (Bernstein, 2000). Many chain pharmacies may be open 24 hours a day which makes them more accessible to patients who will not be able to visit our store during normal business hours. However, in the 5 mile radius of the location of CC Pharmacy both Walgreens are closed by 6pm and do not open until 9am during the week. Walgreens is the industry leader; however their hours of operation may prove to be an advantage to our independent pharmacy forcing people who cannot work this
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into their schedule to find an alternative such as our independent pharmacy with more convenient hours. Competitor’s Strategy
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This note was uploaded on 03/26/2012 for the course BUS GM560 taught by Professor Fields during the Summer '10 term at Keller Graduate School of Management.

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Week 5 Section of BP - There are several competitors within...

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