Rite Aid Case Analysis Essay

Case Analysis: Rite Aid Corporation
Katina King
Brenau University

Case Analysis: Rite Aid Corporation
Rite Aid Corporation’s competitive advantage was consolidation or acquisitions. When Rite Aid Corporation opened its discount drug store doors, in the early 1960’s, expansion was hurried. Several acquisitions of smaller chains grew the company’s store number to 267 in 10 U.S states. (Berstein, Orbe, Fessler, Fischer, Kreger, & Whitlow, n.d.). In less than twenty years, Rite Aid became the third largest retail pharmacy chain in America and aggressive growth was their chosen business strategy. Rite Aid, at the time, wanted to gain a strong nationwide presence, so the company expanded from the East Coast to the West Coast with another 1,000 store acquisition of Thrifty Payless Holdings, …show more content…
Rite should immediately discontinue its aggressive growth strategy and instruct it marketing team to come up with innovative ideas to get customers in the stores. Innovation is the basis for sustainable competitive advantage. Therefore, companies should seek to build innovative platforms (Mishra & Slotegraaf, 2013). Rite Aid has started the process of developing its own private brand of products under the brand name “Simplify.” Also, they are currently testing marketing a new grocery store/pharmacy concept in 10 stores in South Carolina (Berstein, Orbe, Fessler, Fischer, Kreger, & Whitlow, n.d.). Although several strategies have been implemented in an effort to repair Rite Aid’s failing business, the many stores continue to underperform (Hitt, R.DuaneIreland, & Hoskisson, 2013). The forward plan should be to boast the employees’ morale by coming to a workable agreement with the union. Once they reach an agreement Rite Aid will be able to salvage their reputation, move forward, and continue to improve their credibility and financial

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