Rite Aid Corporation - General Environmental Analysis

General Environmental Analysis:

- Technological Trends:

In those days all mobile companies produce Smartphone and most people around the world owns a Smartphone. Rite Aid corporation produced an official mobile application that has many features by just doing some clicks on the Smartphone; for example knowing the medicine description, location of the nearest Rite Aid store and if they put ads of the offers they do. By issuing this application Rite Aid Corporation became more popular around the world in which the app can be uploaded in every single Smartphone user.

- Demographic Trends:

Rite Aid corporation have many stores distributed in 31 states of the US, about 4800 store. The annual revenues of the corporation are 25 billion dollars, traded in New York Stock exchange. Rite Aid corporation also trades some medicines and health care goods over the counter, on the internet.

- Economical Trends:

Rite Aid Corporation had many problems such as struggling with frauds by Medicare, human recourses and quality control. During the Recession also struggled Rite Aid and many other pharmacies in which people started to look or demand low prices of medicine.

- Political/legal Trends:

Rite Aid Was born or established because of federal legislation for fixed minimum retail pricing in 1962, in which the CEO and founder of the corporation Alex Grass took the opportunity to open a discount drugstore which was successful and enabled to open another five stores of rite aid in 1965 which kept growing until this day to more than 4800 store.

- Sociocultural/Global Trends:

Rite Aid major is producing a high quality medicine to the customers for a healthy culture. The corporation has enlarged the chain of stores nationwide, which gives Rite Aid the advantage to be in the top three worldwide pharmacy corporations.

Industry Analysis:

Rite Aid is a corporation in a Pharmaceutical industry, which includes retail. Rite aid retail sector includes Drugs and Food stores. The Pharmaceutical industry is ranked to be the 37th on the profit that it can generate around the world. The industry is with prescription profitability. Today the prescribed items have a very low margin for the pharmacy retailer. The prices are controlled by the US pharmacy distribution and reimbursement system.

The industry cycle starts from the manufacturer to the drug wholesaler then the product is shipped to the pharmacy. The pharmacy distributes the product or medicine on the patients by the price that Pharmacy benefits manager will specify.

Competitor analysis:

The industry of the retail pharmacy is highly and very competitive. Rite Aids have