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Walgreens Boots Alliance Sales

To accelerate revenue growth through innovative healthcare offerings and omnichannel retail solutions by becoming the leading partner in local healthcare

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Align the strategy

Walgreens Boots Alliance Sales SWOT Analysis

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To accelerate revenue growth through innovative healthcare offerings and omnichannel retail solutions by becoming the leading partner in local healthcare

Strengths

  • FOOTPRINT: 8,600+ pharmacy locations providing massive market reach
  • HEALTHSERVICES: VillageMD, Summit Health offering care delivery scale
  • PARTNERSHIP: Alliances with UnitedHealth, Humana expand reach
  • DIGITAL: 100M+ MyWalgreens members with omnichannel capabilities
  • BRAND: Trusted pharmacy brand with 120+ years legacy

Weaknesses

  • MARGINS: Pharmacy reimbursement pressure impacting profitability
  • INTEGRATION: Slow consolidation of healthcare acquisitions
  • TECH: Digital infrastructure lags behind retail competitors
  • TALENT: Healthcare expertise gaps in key leadership positions
  • EXECUTION: Inconsistent implementation of healthcare strategy

Opportunities

  • HEALTHCARE: $1T+ healthcare services market remains fragmented
  • SPECIALTY: Specialty pharma growing at 13% CAGR through 2026
  • AGING: Senior population growing 3% annually needing care
  • VALUE-BASED: Shift to risk-based care models with higher margins
  • CHRONIC: 60% of Americans have at least one chronic condition

Threats

  • AMAZON: Expansion into healthcare delivery and pharmacy
  • CVS-AETNA: Integrated healthcare/insurance ecosystem advantage
  • REGULATIONS: Changing PBM regulations may reduce pharmacy margins
  • WORKFORCE: Healthcare talent shortage limiting expansion
  • TELEHEALTH: Virtual care adoption reducing in-person visits

Key Priorities

  • HEALTHCARE: Accelerate VillageMD/Summit Health integration
  • DIGITAL: Enhance omnichannel capabilities connecting retail/health
  • SPECIALTY: Expand specialty pharmacy services and capabilities
  • PARTNERSHIPS: Deepen payer/provider relationships for value-based
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Align the plan

Walgreens Boots Alliance Sales OKR Plan

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To accelerate revenue growth through innovative healthcare offerings and omnichannel retail solutions by becoming the leading partner in local healthcare

HEALTH FUSION

Integrate healthcare services with retail experience

  • INTEGRATION: Connect VillageMD EHR with pharmacy systems for 90% of locations by Q3
  • REFERRALS: Achieve 25,000 monthly pharmacy-to-clinic patient referrals by end of Q2
  • SERVICES: Launch integrated healthcare services in 500 additional stores
  • REVENUE: Generate $120M in cross-business healthcare revenue through integrated offerings
DIGITAL EDGE

Elevate digital capabilities across care continuum

  • PLATFORM: Deploy unified digital health platform connecting 100% of healthcare assets
  • ENGAGEMENT: Increase digital health engagement to 30% of MyWalgreens members
  • AI: Implement AI health recommendations for 15M customers generating 5% conversion
  • EXPERIENCE: Achieve 70 NPS for digital healthcare experiences across all touchpoints
SPECIALTY GROWTH

Expand high-margin specialty pharmacy business

  • EXPANSION: Launch 10 new specialty therapeutic areas with payer coverage
  • PATIENTS: Increase specialty patient count by 15% to 450,000 active patients
  • REVENUE: Grow specialty pharmacy revenue to $15B annually, a 20% YoY increase
  • CLINICAL: Achieve 92% medication adherence rate across specialty pharmacy patients
PARTNER NETWORK

Deepen payer and provider strategic relationships

  • CONTRACTS: Secure 5 new value-based care contracts with national payers
  • LIVES: Increase lives under value-based management to 1.2M across all markets
  • ECONOMICS: Improve per-member-per-month revenue by 12% through enhanced contracts
  • OUTCOMES: Reduce total cost of care by 8% for managed lives through care coordination
METRICS
  • Total Healthcare Services Revenue: $14.5B
  • Integrated Patient Count: 9.5M
  • Healthcare Segment Adjusted EBITDA: $780M
VALUES
  • Customer Obsession
  • Results-Oriented Execution
  • Innovation Excellence
  • Collaborative Partnership
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Align the learnings

Walgreens Boots Alliance Sales Retrospective

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To accelerate revenue growth through innovative healthcare offerings and omnichannel retail solutions by becoming the leading partner in local healthcare

What Went Well

  • HEALTHCARE: VillageMD revenue grew 11% with improving profitability
  • DIGITAL: Digital sales increased 14% with rising repeat purchase rates
  • SPECIALTY: Specialty pharmacy revenue grew 18%, outpacing market growth
  • EFFICIENCY: Cost transformation program delivered $1B+ in savings

Not So Well

  • RETAIL: Comparable store sales declined 3.2% in US retail segment
  • MARGINS: Pharmacy reimbursement pressure reduced gross margin by 110bp
  • INTEGRATION: Healthcare segment operating loss of $511M continued
  • EXECUTION: US healthcare segment growth below initial projections

Learnings

  • FOCUS: Concentration on core healthcare services drives better results
  • SYNERGY: Cross-selling between pharmacy and healthcare remains untapped
  • DATA: Customer data integration across channels increases loyalty
  • LOCALIZATION: Store-specific merchandising outperforms standardization

Action Items

  • INTEGRATION: Accelerate VillageMD and retail pharmacy integration plan
  • DIGITAL: Enhance MyWalgreens app with healthcare services connectivity
  • TALENT: Recruit healthcare executives with payer/provider experience
  • PORTFOLIO: Evaluate non-core asset divestiture to focus on healthcare
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Drive AI transformation

Walgreens Boots Alliance Sales AI Strategy SWOT Analysis

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To accelerate revenue growth through innovative healthcare offerings and omnichannel retail solutions by becoming the leading partner in local healthcare

Strengths

  • DATA: Vast prescription and health data across millions of patients
  • TOUCHPOINTS: Multiple customer interaction points for AI deployment
  • ECOSYSTEM: Healthcare/retail integration creates unique AI use cases
  • SCALE: Large operation scale to justify AI investment ROI
  • PILOTS: Several successful AI initiatives in pharmacy operations

Weaknesses

  • INFRASTRUCTURE: Legacy tech systems limiting AI implementation
  • TALENT: Limited AI/ML expertise across the organization
  • GOVERNANCE: Inconsistent data management across business units
  • INVESTMENT: Competing priorities reducing AI-specific funding
  • INTEGRATION: Siloed data across retail and healthcare units

Opportunities

  • PERSONALIZATION: AI-driven personalized health recommendations
  • OPTIMIZATION: Supply chain and inventory management efficiency
  • PREDICTION: Medication adherence and health outcome forecasting
  • AUTOMATION: Prescription processing and verification acceleration
  • ENGAGEMENT: Intelligent customer engagement across channels

Threats

  • COMPETITION: Tech giants leveraging superior AI capabilities
  • REGULATION: Evolving AI governance in healthcare limiting use
  • PRIVACY: Patient data protection concerns limiting AI applications
  • COMPLEXITY: Healthcare AI implementation requiring specialized skill
  • ADOPTION: Customer resistance to AI healthcare solutions

Key Priorities

  • PLATFORM: Build unified data platform connecting health/retail data
  • PERSONALIZATION: Develop AI health recommendation engine at scale
  • OPERATIONS: Implement AI-driven supply chain optimization
  • TALENT: Establish AI center of excellence with healthcare focus