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Rite Aid Econ Problem
Transcript of Rite Aid Econ Problem
In 1968 the company established a new name , which now is, Rite Aid.
Since the opening of their first store , Rite Aid has advanced rapidly.
But Rite Aid has major competitors in the same industry. Once the company, controls the debt situation, the next step would be to lead the competition.
There are an increasing amount of companies that are competition to Rite Aid, like Walmart and Target
How would Rite Aid do this?
Establish more stores across the nation -make it available to people
Implement lower prices for consumers -affordability of products
Advertisements / Social Networking
Revitalization of facilities Being able to lead these huge drugstore chains is essential for the future of the company.
It will give consumers a new perspective on Rite Aid and will give them a reason to buy there.
If Rite Aid does not catch up to the other drug store chains there will be consequences.
As a company, it needs to develop an image for their company and allow that image to make Rite Aid , the consumer's first choice when choosing where to shop. Rite Aid Rite Aid is a well-known drugstore chain in the U.S.
It is the largest on the East Coast and ranked third largest in the nation.
There are approximately 4,700 stores nationwide
Rite Aid sells and distributes goods such as prescription, and over the counter medicine.
Rite Aid also sells beauty products, food, office supplies ,etc. Walgreens Walgreens is one of Rite Aid's major competitors
Walgreens is the largest pharmacy chain in the U.S
It has approximately 8,300 store locations across the country.
Walgreens is very similar to Rite Aid because they also sell medicine, food, cosmetics, etc. CVS Pharmacy CVS Pharmacy is the second largest pharmacy chain in the country.
CVS has an estimate of 7,000 stores across the U.S and Puerto Rico.
CVS also sells prescription drugs, over the counter medicine,beauty supplies, food,etc. Unfortunately,Rite Aid is falling behind Rite Aid Economic Problem One of Rite Aid's Major problems is their competitors.
They need a revitalization in their company that will make them have a competitive advantage.
Another problem they have is the accumulated debt they incurred. From this information, Rite Aid needs a solution, before the company fails. Although, Rite Aid is facing these situations I have a solution that will help this company move forward. Step 1 : Cut The Debt Our first step is to eliminate the debt of the company. This is necessary in order for the company to move forward and improve.
It is better to fix the debt situation now then wait even longer.
The company recently refinanced part of its debt, so it gives the company some extra time.
Rite Aid accumulated this debt with the purchase of Brooks and Eckerd stores in 2007.
They were not able to fund this purchase. Debt First thing we have to do is organize all the expenditures that the company had in the past year.
From that report, evaluate it and see where cuts can be made.
2 ways we can cut on expenditures
Is either eliminating one large expenditure or cut back on it.
Second is we can have an across the board cut on everything. Debt Then we need to analyze where the company has invested money into and see if it is really worth it.
The company can also organize a plan for the debt they have and set goals for when they want to pay it off and how they will pay it off.
Rite aid also needs to :
Bring in more revenue
This means an increase in sales through an aggressive marketing strategy.
With an aggressive strategy the future of Rite Aid Corporation will strive. Rite Aid Vs. Walgreens Map of Stores Across the U.S Rite Aid Walgreens Lower Prices By lowering prices in the store , more consumers will be drawn into spending at Rite Aid
Buyers in this market are looking for affordable and durable products that are worth their money.
They are in search for the best possible prices and they compare stores for the best buy.
Rite Aid can use the market penetration strategy to attract competitors' customers or new customers.
The company can increase the supply of a product this will lower the price. Advertising / Social Networking In order to obtain a successful company in this generation technology is a key component.
Technology is a tool that has a positive impact on the company, because it brings in more consumers , and that results in more revenue being brought in.
Like in any industry advertising is essential for the company.
By incorporating a new design for these advertisements this will give a fresh look for Rite Aid and be more welcoming for the consumers. Improvements in the facilities Many of the successful companies in this generation are warm and inviting to the buyers. The appearance of the store brings in customers because of the modern and fresh look.
i.e Target has a red color that is warm and has great aesthetic value.
Appearance is another key for Rite Aid to improve on
Some of Rite Aid's locations are old , and outdated.
This look is downgrading the company as a whole.
My solution is to invest in the renovations of the stores making it more inviting to consumers. Rite Aid
Tylenol Extra Strength Caplets
Tylenol Extra Strength Caplets
$4.99 Products Rite Aid must analyze the market , in order to make these decisions.
What are the market's needs?
What are the wants of consumers?
Rite Aid can also use diversification.
This is basically widening a company's area of products.
As time passes, many changes are made in the market, so by having new products this will bring more opportunities for revenue to be brought in.
It is a risk , but with the right skills it can lead to a profitable areas.
For Example, incorporating the sale of apple products.
If this is successful this will bring people to shop at Rite Aid, that might have not shopped there before.
Quality is an important factor in regards to the products.
If the product is made of great quality this will ensure that the consumer's marginal gain is greater than the marginal cost.
Brohan, Mark. "Drugstore.com and Rite Aid write a new e-commerce agreement." Internet Retailer. Ed. Vertical Web Media. Vertical Web Media, 10 Sept. 2008. Web. 3 Jan. 2013. <http://www.internetretailer.com/2008/09/10/drugstore-com-and-rite-aid-write-a-new-e-commerce-agreement>.
Brush, Michael. "7 Companies on the Ropes in 2012." Msn. Ed. Micorsoft. Micorsoft, 2012. Web. 28 Dec. 2012. <http://money.msn.com/investment-advice/7-companies-on-the-ropes-in-2012>. A summary of possible companies at risk for economic problems
Gelsi, Steve. "Rite Aid same-store sales down 2.2%." Market Watch : the Wall Street Journal. Ed. Market Watch. Market Watch, 2013. Web. 18 Oct. 2012. <http://www.marketwatch.com/story/rite-aid-same-store-sales-down-22-2013-01-03?siteid=yhoof2>.
Interactive Data. "Rite Aid Corp." The Motley Fool: To Educate, Amuse & Enrich. Ed. Motley Fool. Motley Fool, 2004. Web. 3 Jan. 2013. <http://www.fool.com/quote/nyse/rite-aid-corp/rad/key-statistics>.
Tran, David V. "Transmercial Commercial Real Estate Investment." Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2011? 2010: n. pag. Print. Works Cited Rite Aid has made some improvements to their company
For Example, Rite Aid has signed a new e-commerce agreement with Drugstore.com Inc. that would help Rite Aid establish its own web store for over-the-counter products.
Rite Aid also has implemented programs and benefits for members. Rite Aid Performance