Business Wars CVS vs. Walgreens | A New Prescription | 3
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Oct 25, 2023 In 2009, Walgreens faces a crisis after losing its CEO and market leadership to CVS. The company strategizes a comeback, exploring innovative growth tactics and acquisitions. Tensions escalate with CVS, especially over legal issues surrounding pseudoephedrine sales. Walgreens' partnership with Theranos shows ambition but faces skepticism. As contract disputes arise, the competitive dynamics of the healthcare retail arena shift dramatically, with CVS poised to capitalize on Walgreens' struggles.
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Walgreens' 2009 Crisis
- In 2009, Walgreens faced challenges like losing its CEO and its top position to CVS.
- New CEO Greg Wasson aimed to revive the company through strategies like acquisitions and a loyalty program.
Duane Reade Acquisition
- Wasson explored acquiring Duane Reade, known for poor service but prime locations, after observing their "New Look" stores.
- These stores offered improved merchandise and layout, suggesting potential for Walgreens to enhance Duane Reade's service.
Walgreens vs. CVS Caremark
- Walgreens ended its agreement with CVS Caremark, impacting $5 billion in revenue.
- CVS retaliated, and after a standoff, they reached a compromise due to their mutual dependence.
