In this chapter we will be focusing on the diversification strategy that Rite Aid have implemented. Diversification is the ability to establish a sustainable competitive advantage that will make Rite Aid more appealing in terms of rarity and imitability. Rite Aid currently do not have any new strategy to be more diverse and be more unique than CVS or Walgreens. However, they do have their famous brand of Thrifty’s ice cream. In the 2nd quarter of 2019, Rite Aid stated that the sales of this ice cream was what kept their earnings above the expected EPS given by Zacks. I know for sure some people might think, how come a pharmacy is selling ice cream, but you have to realize that diversification is where you are doing something different. Something that is not related to the primary business, to create for demand for your company. Even though Rite Aid is not more diverse as other companies, it is stable enough to be a fierce competitor against CVS and Walgreens.
Alan's Perspective 