Walgreen Co. thrived for decades by opening stores faster than its competitors (a new store every 16 hrs.) and by filling more prescriptions each year than any other chain. But the company is now changing its strategy and is becoming a broad health-care provider. They have acquired two companies that run a total of 350 health centers at corporate offices. They are expecting to open more pharmacies at work sites, and they will operate 136 clinics inside Walgreens stores. It is also opening pharmacies in hospitals and assisted-living centers, and greatly increasing the number of its pharmacists certified to give flu shots and other immunizations. But its stock is dropping, and its competitors are pursuing a strategy of managing employer drug-benefit programs. Both Wal-Mart and CVS are focusing on helping employers lower costs association with prescription drugs for their employees. PBMs, or pharmacy-benefit managers, are not playing a major role in Walgreens new strategy, however. Instead, theyre focusing on connecting the dots between health care delivery and prescriptions. They have expanded into specialty pharmacy, a business that is expanding 15-20% per year and is highly profitable. Walgreen executives envision bringing together its Take Care clinics, specialty operations, and workplace centers, using electronic prescriptions and medical records, to cover a range of needs.

1. Based on Michael Porters discussion of the characteristics of an effective strategy, does Walgreens have a good growth strategy? Explain.