Some industries have inherent better profitability, growth, and market value than others. The recent report from the Drug, Chemical, and Associated Technology (DCAT) showed that the pharmaceutical industry growth at an average rate of 9 percent annually from between 2013 to 2015. The industry is also forecasted to increase another 33 percent and reach $1.5 trillion by 2021 (Arnum, 2017). By utilizing Porter’s five forces to evaluate the industry, it showed that the demands for pharmaceutical products are rising as more people are aging. Additionally, people are living longer, middle class is growing, and people are adopting a more sedentary lifestyle (Chronic Disease and Conditions are on the Rise, n.d.). This resulted in more chronic …show more content…
My previous employer was Walgreens Pharmacy. Walgreens pharmacy measures its profitability and growth by utilizing key performance indicators such as prescription volume, dispensing of specialty medications, customer loyalty through net promoter score, and net income. The key performance indicators Walgreens pharmacy is consistence with the pharmaceutical industry. Report by Drug Channels (2014) showed that the five largest dispensing pharmacies between 2013 and 2014 accounted for 65 percent of all U.S. prescription dispensing. The report also showed that Walgreens and CVS tied for number of prescription volume growth of 15.6 percent each. To increase its purchasing power, Walgreens completed the acquisition of Alliance Boots in December 2014 for $11.5 billion in cash and 144.3 million shares. This allows the company to gain entry to the pharmaceutical business in the European, Middle Eastern, and Asian markets. Additionally, the merger is expected to generate higher profit and reach an estimated $1 billion in synergies in the fiscal year of 2016 (Bells, 2016). Furthermore, U.S. Walgreens agreed to purchase 1,932 Rite-Aid stores with a $5.2 billion deal and will become the largest retail pharmacy in the U.S. with more than 10,200 stores. The acquisition also provided Walgreens opportunities for cost cuts, greater negotiation leverage, and more purchasing power (Boomey, 2017). Lastly, the partnership between Walgreens and Prime Therapeutic LLC provided additional 230 specialty pharmacies for its