What Business Strategy do you employ?

I want to take a look at three mass market retailers/department stores and see how they sustain their share on the market either by focusing on the costs of running a business, being unique somehow, or concentrating on a particular customer group or a product line, etc.

First, I want to take a look at a mass market retailer, such as Wal-Mart. First, it is a powerful retail brand. It has a good reputation for value for money, convenience and a wide range of products in one store. It offers general merchandise, including apparel, domestics, fabrics and notions, stationery and books, shoes, housewares, hardware, electronics, home furnishings, small appliances, automotive accessories, horticulture and accessories, sporting goods, toys, pet food and pet accessories, cellular phones, and cellular service plan contracts. Its stores also offer grocery merchandise, and financial services and products. Plus, it is constantly growing worldwide. It has its retail location in several countries and is expanding. The example can be a purchase of a UK based retailer ASDA. The company reaches its competitiveness through use of effective IT to support its international logistics systems. One click away is to see how individual products are performing country-wide store by store. IT also supports the company effiecient procurement.

The other mass market retailer that I want to mention is Walgreens. Walgreens find its weekness as intense competition primarily from Wal-Mart. Wal-Mart delivers more drug prescriptions and it makes much more money per a square foot of the store ($ 26/sq.ft for Walgreens vs. $ 46 for Wal-mart). Walgreens believes that on average a customer lives about 2 miles from the store. To overcome the problems, Walgreens will follow this strategy:
- enter more markets: Walgreens currently is increasing its net stores by 1 per day; also investing in prime store locations
-partnered with TakeCare and InterFit to operate small cliniques in Walgreens stores
- "dense up" existing markets: freestanding stores and drive-though pharmacies, touch tone prescription refills.
- organic store growth: relocate or remodel
- invest heavily in high-tech stores and distribution systems which drive service up and costs down
- offer healthcare beyond the traditional pharmacy: online drug store website

The third store that I want to cover is Rite Aid. The company knows that every year, more baby boomers move into their high prescription usage years. Drug companies continue to spend billions on research and development to create new drug therapies for diseases we know and illnesses we haven't heard of yet. New drugs have started to move through the FDA approval process faster. And over the next five years, three times as many branded drugs will come off patent as in the last five years, which will make prescriptions more affordable and be a boon for higher margin generics. Growing prescription count is number one focus for Rite Aid because pharmacy represents 63 percent of its business and has the most potential for natural growth. Initiatives include increasing recruitment of pharmacists in hard to staff areas, a new program for reacquisition of former customers, a focus on seniors and improvements to Rite Aid managed care and clinical services product lines. The company has doubled its capital budget for acquiring prescription sales, since they provide a quick return on investment. Rite Aid believes new and improved technology will also deliver results as it continues to roll out its next generation pharmacy system, expand e-prescribing so more doctors can send prescriptions electronically and market its enhanced automated refill system. These will make it even easier for both patients and doctors to use Rite Aid.