A Research of Expansion Strategy of Chain Drugstore

• Main Authors: shih-wei kung, 龔士惟
• Other Authors: Kuo-Qin Yan
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/78197832043018839704

碩士 === 朝陽科技大學 === 企業管理系碩士班 === 100 === Drugstores have a long history in Taiwan, and chain stores have become a trend. The quickest way to expand business for chain drugstores is “shop expansion.” According to one common saying, the success of a store is determined by three major factors: location, location, and location. However, stores nationwide have been changing. Shop expansion requires making strategic decisions in terms of investment; therefore, chain drugstores should undertake a careful evaluation when considering shop expansion. Well-known consultants and owners of chain drugstores were interviewed in this study to collect information that should be beneficial in academic circles and practical fields. This research found that the shop expansion of chain drugstores mainly depends on factors such as internal growth, in-house training, and economies of scale, with break-even points and earning power being the main items for consideration. Trade area and site surveys were mostly conducted simultaneously and considered as part of daily procedures. The main reason for this is because trade area and site surveys aim at investigating shop expansion as well as consumers and competitors. Lastly, although the success of shop expansion is related to the given trade area and site, the research results indicated that they are not absolutely determinative factors. Since shop expansion requires considerable investment, many chain drugstores have had to withdraw from the market due to failure. We hope that the insights of this study will help owners of chain drugstores to enhance their chances of success in shop expansion.