Retail pharmacy major Walgreens Boots Alliance, Inc. WBA recently sketched its key long-term growth plan. The growth strategy is expected to drive this first-of-its-kind pharmacy-led, health and wellbeing organization ahead in the diverse markets across the globe. Notably, Walgreens Boots was formed on Dec 31, 2014 as a result of the merger of the U.S.-based pharmacy giant Walgreens Co. and its European counterpart, Alliance Boots.

For the long term, the merged entity has structured its growth and expansion plan on three strategic pillars. First, Walgreens Boots will seek and seize further synergy opportunities, while continuing to optimize its cost base across the enterprise. Second, management seeks to drive the company’s organic growth by making the most of a well integrated wholesale-retail model and its brands. Last, Walgreens Boots will pursue to generate and seize relevant merger and acquisitions and strategic investment opportunities in mature and emerging markets.

Notably, emerging markets represent another longer-term strategic opportunity that the company plans to capitalize on in pursuance of Walgreens Boots’ future growth. Management believes the company is well placed to serve as a catalyst of change in the substantial Chinese market. Moreover, its recent acquisitions in Mexico and Chile position it well to eventually become an influential player in the Latin American market. These markets should create further opportunities for Walgreens Boots to advance the health and well-being of communities around the globe.

Management is pleased with the excellent precedence that Walgreens Boots has exhibited in the healthcare industry in only three months post its emergence, while also delivering systematic and sustainable value for its investors.

Management aims at developing an integrated, back-to-basics approach in Walgreens Boots’ U.S. pharmacy and retail operations with a focus on providing convenient and improved customer care. With this strategy in mind, management is currently making vigorous investments to enhance the company’s primary operational efficiencies like IT systems and pharmacy modernization.

In the specialty pharmacy market, the company is undertaking several strategic collaborations and offering cost efficient, clinically appropriate patient care with an aim to improve outcomes at a reduced cost structure.

Walgreens Boots believes that its Retail Pharmacy International division will continue to gain from the multifaceted benefits it enjoys in its existing markets, apart from leveraging the opportunities in the new ones. Evidently, in the U.K., the company’s new pharmacy and omnichannel models are fast gaining traction. The division continues to unveil new health and beauty products in line with the changes observed in customers’ expectations and lifestyle.

Management also highlights strategic advantages obtained from the company’s Pharmaceutical Wholesale business, which allows Walgreens Boots to make a more rapid entry in new markets compared to its retail business.

We believe the announcement of this long-term growth will bode well with the company’s overall growth initiative.

Currently the stock carries a Zacks Rank #3 (Hold). Top-ranked medical stocks include Almost Family Inc. AFAM, Chemed Corp. CHE and LHC Group, Inc. LHCG. All the three stocks sport a Zacks Rank #1 (Strong Buy).

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