Rite (NYSE: RAD) Aid SWOT
Rite Aid us a public owned retail industry that is specific for the pharmaceutical products. The company was founded in 1962 with an initial name of Thrif D Discount and eventually it became the Rite Aid corporation in 1968 and its headquarters are located in East Pennsboro Township, Pennsylvania, United States.
• The third largest drug retailer in America being at the top position in retailing medicines on the eastern coast.
• The company has a very strong presence not only in the east but also the west operating in 31 states offering services through 4,780 stores.
• The company is traded publicly under RAD in the New York Stock Exchange.
• The company biggest achievement and strength was its pairing up with Ellicott Development Company, because of which it succeed in spreading around New York.
• The company’s acquisition has always been commendable for its progress. The companies acquired by Rite Aid include A 420-store, Harco, Inc. Hooks Drug stores, Baltimore, Maryland’s Read’s Drug Store, Lane Drug, Perry chain, Thrifty PayLess, and K & B Inc.
• Rite Aid has been the RX of the prescriptions.
• The company aims the special focus on entertaining the ambiguities of the customers so as to the maximum satisfaction level of satisfaction.
• The quality of the products is maintained strategically by coalition with Global Nutrition centre that is GNC.
• Company has a very advanced vision of services provision through internet and its products are easily accessible at drugstore.com being its partner as well along with its own website launched as riteaid.com which complements company’s electronic presence.
• Certain policies related to the outlets hygienic environment also appeals the customers to be a part of purchasing chain.
• The stores presence is not homogenized between east and west and same is the case with execution of the stores, the difference is very evident between the edges.
• The decreasing dollar price is responsible for the dropped out shares of the company.
• The mass production in reaction to high demands could not be attainable.
• The drug stores are not at that ideal locations as that of its competitors like Walgreen and Wal-Mart.
• Pharmacy benefit management is not up to the required level.
• The company has heavy liabilities or long term debts.
• The private label equity of the company is not properly enhanced.
• The loyalty program is initiated by the stores by issuance of cards offering special discounts on prescriptions through a program formally known as ‘Living more’.
• Rite Aid has merged up with Eckerd and Brooks earning more than expected profit levels.
• The high expectations of the aging population especially in America and the increasing demand for generic drugs.
• Sudden shift of drug labels towards the private drugs would enhance the company’s brand name.
• The company offers the insurance policies towards their customers through the passage of Health care reforms bill.
• CVS and Walgreen are the toughest competitors being faced by the company.
• The rising market shares of the competitors.
• The company’s political situation is highly uncertain because of political expansions of other pharmacy chains.
• The company is at the risky position as it lacks human aid especially the qualified pharmacists.
• Breidenbach, Michelle (October 10, 2010). How Carl Paladino built his Rite-Aid empire. The Post-Standard (Syracuse, NY).
• Chain Drug Review. (March 27, 1989). “Peoples divests its Lane units”
• Fried, Lisa I. (1995-02-20). “Perry-Rite Aid consolidation begins”. Drug Store News. http://findarticles.com/p/articles/mi_m3374/is_n3_v17/ai_16541601. Retrieved on 10, April 2011.