Drug Stores
Competitive Landscape
Demand is driven by the aging of the US population and advances in medical treatment. The profitability of individual companies depends on access to medical insurance groups. Large companies have economies of scale in purchasing and in access to large groups of customers. Small companies can compete effectively through convenient location or special merchandising. The industry is capital-intensive: average annual revenue per employee is $300,000.
Opportunities
Drug Spending Growth - Prescription drug sales are expected to continue to increase due to several factors. Increased prescription drug use has been fueled by managed healthcare companies, which...
Business Challenges
Lower Margins for Prescription Drugs - The share of prescriptions paid for by insurance or other third parties has grown in recent years, but margins have shrunk. To control their costs,...