Strategic Management of Chemist Warehouse Australia

Running Head: Strategic Management
Strategic Management of Chemist Warehouse Australia
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Running Head: Strategic Management
Table of Contents
Introduction...........................................................................................................................................2
Micro and macro-environment analysis.................................................................................................3
Competitive advantage over rivals.........................................................................................................5
Generic Strategy of Chemist Warehouse...............................................................................................5
Growth Strategy of Chemist Warehouse...............................................................................................6
Strategic recommendations at the functional and business level............................................................6
References.............................................................................................................................................7
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Running Head: Strategic Management
Introduction
Australian Pharmaceutical market is anticipated to grow to $25.2 billion by 2020.The
continuously growing competition among various companies has resulted in more discount
stores and supermarkets that have completely changed the traditional landscape of the
industry. The annual growth of the industry has been reported to be 2.4% in the time period
of 2014-19 (IBISWorld, 2019). Chemist Warehouse, founded by Jack Gance Sam and Lydia
GanceVerrocchi families, is an Australian company that runs a number of retail pharmacies.
Also known as “the McDonalds of Pharmacy”, the company is famous for offering heavy
discounts on pharmaceutical goods. With almost 300 stores throughout Australia, the
company has around 8,000 staffs and holds 20% of the market share. Australian Government
has some regulations on the number of pharmacies that can be run by a single company in a
certain area. The franchise structure of the company is complicated and made in such a way
that the law can be avoided tactfully.
Micro and macro-environment analysis
PESTEL Analysis
Political
1. Government rules and regulation are flexible and
there is a growth in the pharmacy industry
2. Regulations on trade and tariff in the Health care
industry comes into picture.
3. Regulations on safety in Health care services needs
to be taken care of.
Economic
1. GDP of Australia is $1.69 trillion. The purchasing
power of people is comparatively high (Australian
Government, 2018)
2. Inflation rate and the various income levels of
people affect the price. Chemist warehouse is
specialized to offer heavy discounts.
Social 1. Everyone in the society requires medicines
especially the older ones and the kids.
2. CWH offers skin care and beauty products as well
that comes as another advantage as females from
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