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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Pharmacy SWOT Analysis

 

Strengths

 

Much like medical practices, pharmacies tend to remain profitable at all times given the simple fact that people are going to continue to need medications. Additionally, pharmacies receive a substantial amount of their income from publicly and privately funded healthcare systems. These businesses also benefit from the fact that there are very high barriers to entry for establishing, owning, and operating a pharmacy. The educational requirements to become a licensed pharmacist are substantial. As such, these requirements make it extremely difficult for new agents to enter the market.

 

Weaknesses

 

The costs of operating a pharmacy are extremely high. The costs of good sold usually consist of 70% to 80% of the revenues generated. Additionally, there are ongoing political risks with operating a pharmacy. Legislation pertaining to the Affordable Care Act, Medicare, Medicaid, and private insurance are constantly changing. As such, pharmacies need to maintain a very lean operation in order to remaining pricing competitive. There are very high legal costs related to remaining within the letter of the law at all times.

 

Opportunities

 

Generally, the biggest opportunities for pharmacies come when new pharmaceuticals that are prescribed by doctors are released into the market. This substantially boosts the revenues of most pharmacy operations. As similar with most other businesses, pharmacy businesses can easily expand by developing additional retail locations.


One of the other ways that these businesses tend to grow is through increasing the number of non-pharmacy products offered in their locations. This is one the most common ways to boost revenues without having to carry additional drugs. Finally, pharmacies can increase their income by offering compounding services.  

 

Threats

 

As discussed in the weaknesses section, the primary threat faced by pharmacies is that regulatory issues can substantially change the way that these businesses conducts their operations. It should be noted that large scale pharmacy chains have also become a substantial competitive issue for many independently owned individual stores and chains. This will continue to be a substantial issue for pharmacists that are seeking to develop their own businesses.


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