Industry Analysis & Industry Trends
Demand for pharmaceuticals will continue to increase as they become more affordable to more people, due to healthcare reform and the aging baby-boomer generation. However, cost cutting measures implemented by the government will likely shrink profit margins. Despite potentially small profit margins, competition will remain strong among industry players and alternate retailers... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Pharmacies and Drug Stores industry is in the mature stage of its life cycle. The industry's value added (IVA), which measures the industry's contribution to the overall economy, is anticipated to grow at an annualized rate of 2.8% during the 10 years to 2019. Comparatively, GDP is expected to grow at an annualized rate of 2.7% during the period. However, while the industry is growing at a faster pace than the overall economy, industry sales volumes are slowing. Additionally, high competition, coupled with many industry players consolidating, is indicative of an industry in the mature life cycle stage.
New players are also deterred by the strong rivalry between the top two players (Walgreen Company and CVS Caremark), which make up an estimated 79.0% of industry revenue... purchase to read more