Mercury Drug Corporation

Mission Statement:

To serve our customers- to have what they want, when they want it, where they want, it
how they want it.

Vision Statement:

To continuously be the leading trusted and caring drugstore.

External Factor Evaluation Matrix:

Opportunities Weight Rating Weighted Score

1. Customer’s 5% 2 0.10
knowledge about the
drugstore as the best
leading among others

2. Customer’s loyalty 20% 4 0.80

towards the
drugstore

3. The needs and 10% 3 0.30

wants of the
consumer (medicine,
foods, etc.) provided
by the drugstore
unlike those others
who only provide
medicines alone

4. Continuity of the 5% 2 0.10

good background
held by the drugstore
through feedbacks
from consumers

5. Rising expectation 8% 3 0.24

 of the customers

6. Strategic location 3% 2 0.06

7. Number of 5% 2 0.10
branches nationwide

Threats:
1. Rise of new 6% 2 0.12
competitors

2. Competitor’s lower 11% 4 0.44

price of medicines

3. Shop lifting cases 3% 1 0.03

4. Sharing the same 9% 4 0.36

location with a
supermarket/mall

5. The intensity of 4% 2 0.08

competition between
competitors

6. Rising number of 2% 1 0.02

customers

7. Unpleasant 2% 1 0.02
experience of the
customers

8. Number of 7% 3 0.21
inventory not sold
due to sudden low
demand

TOTAL 100% 2.98

* Rating: 4- Superior; 3- Above average; 2-Average; 1- Poor

External Factor Evaluation Matrix Analysis:

 As seen on the EFE Matrix above, Mercury Drug Corporation scored 2.98 on the
evaluation of General Environmental Analysis of the given external factors. With regards
to the opportunities of the company, customer’s loyalty scored the highest simply
because it is a need in every business. Once a business got the loyalty of the market, it
need not worry about its competitors no matter how many of them will rise and try to
compete with them. Customer loyalty is a necessity in order to achieve a long term
competitive advantage. On the other hand, low product prices of the possible
competitors scored the highest with regards to threats of Mercury Drug Corporation. We
all know that every consumer wants to have their demand at a lower price, and the
competitors of Mercury Drug Corporation such as The Generics Pharmacy offers a
lower price of medicine. If the consumers start to patronize the product prices of The
Generics Pharmacy, customer loyalty shifts to them and leaving Mercury Drug
Corporation a hard time in earning those loyalties again.

Competitive Profile Matrix:

Mercury Drug The Generics Watsons Personal care

Corporation Pharmacy Store

Critical Success Weight Rating Score Rating Score Rating Score

Factors
Product Quality 0.11 4 0.44 3 0.33 4 0.44
Customer Service 0.10 3 0.30 3 0.30 3 0.30
Customer 0.10 4 0.40 3 0.30 3 0.30
Satisfaction

Variety of Products 0.17 4 0.68 1 0.17 4 0.68

Low cost 0.20 2 0.40 4 0.80 2 0.40
Consumer Loyalty 0.20 4 0.80 2 0.40 3 0.60
Advertising 0.05 3 0.15 3 0.15 2 0.10
Location of 0.07 3 0.21 1 0.07 2 0.14
Facilities
TOTAL 1.00 3.38 2.52 2.96
*Rating: 4- major strength; 3- minor strength; 2- minor weakness; 1- major weakness

Competitive Profile Matrix Analysis:

As seen on the CPM Matrix above, the low cost of product and customer loyalty scored
the highest in the critical success factors, while the advertising scored the lowest. The
CPM Matrix identified 3 companies: Mercury Drug Corporation, The Generics Pharmacy
and Watsons. The table above gives us the idea that Mercury Drug Corporation’s:
Strengths: Product Quality, Customer Service, Customer Satisfaction, Variety of
Products, Customer Loyalty, Advertising and Location of Facilities; Weakness: High
cost of products. The Generics Pharmacy’s: Strengths: Product Quality, Customer
Service, Customer Satisfaction, Low cost of products and Advertising; Weaknesses:
Variety of Products, Consumer Loyalty and Location of Facilities. On the other hand,
Watson’s: Strengths: Product Quality, Customer Service, Customer Satisfaction, Variety
of Products and Consumer Loyalty; Weaknesses: High cost of products, Advertising
and Location of Facilities. Through this CPM Matrix, it can be concluded that Mercury
Drug Corporation has the most competitive advantage between the three given
companies followed by Watsons.

Michael Porter’s Framework:

*****A possible online

selling of medicines or
other demands of
consumers

***Mercury drugstores **Small stalls selling

* Watsons offering
are probably one of the medicines directly
medicines and a variety of
largest customers of any bought from Mercury
possible demands of
of the supplier of Drugstores at a
consumers
medicines they are discounted price due to
selling order quantity

****Loyal customers are

not very likely to buy
their demands on a new
competitor
Analysis of Michael Porter’s Framework:

*Rivalry among competing firms (High Pressure) - The biggest competitor of

Mercury Drugstores is Watsons simply because they both offer medicines and varieties
of products which the consumers demand. However, Mercury Drugstores offers those
products at a lower price than Watsons.

**Bargaining power of consumers (Low Pressure) - Small stalls selling medicines

are likely to buy from Mercury Drugstores at a discounted price because of a high
volume.

***Bargaining power of suppliers (Low Pressure) – Mercury Drugstores are likely to

be the largest customer of different suppliers of medicines and other products because
of their hundred branches nationwide.

****Potential development of substitute products (Moderate to High Pressure) - A

potential fall down of Mercury Drugstores is the technological advancement wherein
consumers are able to buy their demands online with the use of technology, thus saving
the consumer’s time.

*****Potential entry of new competitors (Moderate Pressure) - Loyal customers are

not likely to try buying their demand at a new competitor as long as Mercury Drugstores
strives hard to maintain their loyalty through good customer service and quality
products.

Internal Factor Evaluation Matrix:

Weight Rating Weighted

Score
Strengths
1. Skilled Labor force 0.10 4 0.40
2. Approachable employees 0.02 3 0.06
3. Advertising through national TV or in any other 0.01 3 0.03
forms
4. High Morale Staffs 0.02 3 0.06
 5. Good Branding 0.04 3 0.12
6. Loyal Employees 0.05 3 0.15
7. Strong bond between each branch’s manager and 0.04 3 0.12
their team
8. Good reputation and image 0.15 4 0.60
9. Online website for important information and 0.07 4 0.28
contact
10. Strong management team 0.12 4 0.48
11. Enjoyable workplace 0.07 4 0.28

Weaknesses
1. Service complaints 0.02 2 0.04
2. Less effective security within the drugstore 0.06 2 0.12
3.Allowing an employee to go home early with a 0.08 2 0.16
work not yet finished
4. Competition based on prices 0.15 1 0.15
TOTAL: 1.00 3.05
* Rating: 4- major strength; 3- minor strength; 2- minor weakness; 1- major weakness

Internal Factor Evaluation Matrix analysis:

As seen in the IFE Matrix above, Mercury Drug Corporation scored 3.05 indicating that
they have a strong internal position. The company’s major strength is their good
reputation and image, their strong labor force and a strong management team. Both
strengths play a big role in achieving their goal to be the best leading drugstore in the
Philippines. However, the company also have a major weakness that scored the highest
which is the competition based on prices since they have competitors offering low prices
than them, thus, giving rise to the possibility of the lower number of customers.