Strategies Used by Rite Aid Pharmacy - 1852 Words

Leah Morris MGMT 441 * Rite Aid Pharmacy * Headquarters: Camp Hill, Pennsylvania * CEO: John T. Standley * Mission Statement: To be a successful chain of friendly, neighborhood drugstores. Our knowledgeable, caring associates work together to provide a superior pharmacy experience, and offer everyday products and services that help our valued customers lead healthier, happier lives. * NYSE, RAD, $1.90 (Taken March 28, 2013) Business Strategy Analysis Rite Aid Pharmacy is positioning itself in the national drug retailer industry as a cost leadership company. The cost leadership strategy focuses on â€Å"gaining advantages by reducing costs below those of competitors† (Barney amp; Hesterly, 2012). Firms pursuing a†¦show more content†¦(EDER 1998) By keeping their employees training consistent and investing in the newest technology, Rite Aid is taking steps to maintain a cost leadership strategy. Another strategic step Rite Aid has taken is implementing the wellness + loyalty program in 2010. This is a free program for customers that provide incentives to members who enroll based on how many points they accumulate for prescription purchases. You are able to achieve a Fold, Silver and Bronze level in this program. Rite Aid stated that those involved in the wellness + have higher purchases than their non-member customers and they also achieve larger prescription retentions. Wellness + members can also able to receive more rewards and additional savings for future shopping trips. Rite Aid continues to add more enhancements to this program making it more appealing to their customers. They recently added â€Å"Load2Card† which is a coupon management program and Rite Aid is the first drug retailer to implement this program. This allows customers to â€Å"save, manage and redeem Rite Aid and manufacturer coupons available throughout the internet via their wellness + cardâ⠂¬  (Rite Aid 2012). Rite Aid has also formed a strategic alliance with GNC under which they have opened over 2,100 GNC ‘‘stores- within-Rite Aid-stores’’ GNC is a leading nationwide retailer of vitamin and mineral supplements, personal care, fitness and other health-related products. (Rite Aid 2012)Show MoreRelatedCvs Marketing Development Essay example1543 Words   |  7 PagesIn order to sustain the market share in this highly competitive industry the pharmacies have to establish and maintain strong working relationships with PBMs that have power to divest particular clients from a pharmacy by denying reimbursement privileges to their customers. 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