Comments on: Too much of a good thing http://blogs.e-rockford.com/sat/2008/07/02/too-much-of-a-good-thing/ Fri, 21 Nov 2008 12:53:25 +0000 http://wordpress.org/?v=wordpress-mu-1.2.4 By: Jim Phelps http://blogs.e-rockford.com/sat/2008/07/02/too-much-of-a-good-thing/#comment-1724 Jim Phelps Wed, 02 Jul 2008 17:22:16 +0000 http://blogs.e-rockford.com/sat/2008/07/02/too-much-of-a-good-thing/#comment-1724 "It’s amazing that Walgreens has been able to expand as much as it has without the growing pains other companies have faced." Not really all that amazing: Walgreen's has a completely different business model than either KK or Starbucks. More importantly, Walgreen's has a completely different aggregate margin due to the diversity of goods sold. This makes up for a lot of errors in product placement, pricing and marketing. Errors that both KK and Starbucks make time and time again, IMHO Marketing/Retail Marketing opinon. Walgreen's customer base is also extremely diverse. No longer just for the "graying" set. Local convenience shopping in well lit, well maintained and stocked stores and strong retail locations determined by good market research has been driving Walgreen's sucessful business model for years. “It’s amazing that Walgreens has been able to expand as much as it has without the growing pains other companies have faced.”

Not really all that amazing: Walgreen’s has a completely different business model than either KK or Starbucks.

More importantly, Walgreen’s has a completely different aggregate margin due to the diversity of goods sold. This makes up for a lot of errors in product placement, pricing and marketing. Errors that both KK and Starbucks make time and time again, IMHO Marketing/Retail Marketing opinon.

Walgreen’s customer base is also extremely diverse. No longer just for the “graying” set. Local convenience shopping in well lit, well maintained and stocked stores and strong retail locations determined by good market research has been driving Walgreen’s sucessful business model for years.

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