Thesis (Master in Management) -- University of the Philippines Mindanao, July 2021

Amesco Drug Corporation is a family-owned chain of drugstores with branches mainly in Davao City but has gradually expanded in other vital cities outside Davao. Its long-term objective is to reach a revenue of Php 2.15 billion by 2026 with a strong 50 branches all over in Mindanao, and its vision is to be the preferred pharmacy in Mindanao for medicines, medical supplies, and equipment. The company sells medicines, medical supplies and equipment, and grocery items. Its revenues have been growing by double-digit in the past two years, expanding branches as its ambitious strategy. Despite its growth, the company faces a threat from the giant drugstore and the local drugstore chains, especially retail giants entering the retail pharmacy business. The company has still to launch its e-commerce platform despite the growth momentum of online shopping due to the pandemic, and its competitors are already running their e-commerce sites. It does not have a Loyalty Program which puts it at a disadvantage vis-à-vis the other drugstore chains. Lastly, the company can improve its frequency of training for Pharmacy Assistants (Pas), given that the delivery of its value proposition is dependent on the Pas. The Strategic Management Framework of Fred David, integrated with the Business Model of Mansmith by Josiah Go, was used to craft the strategies for Amesco Drug. Specifically, the Business Model was employed in the internal analysis to help the company review its value creation, delivery of value, and capturing of value. For the methodology, this paper used primary data collected from interviews of the company's stakeholders and internal reports provided by the company under the confidentiality agreement. Secondary data was also used, and they were collected through news and government websites, websites of other drugstore chains, and internal reports of Unilab, Inc. The proposed strategies for Amesco are focused on establishing a broader market reach through Market Development and Market Penetration and developing and capacitating workforce and capital augmentation to finance market and manpower-based strategies. The Market Development will be executed by launching its e-commerce platform and expanding to fifty (50) branches in key geographical locations in Mindanao's major urban and rural areas. The e-commerce platform is proposed for the company to capitalize on the growing momentum of online shopping and be competitive with leading drugstore chains whose operations are now integrating e-commerce in addition to the traditional brick-and-mortar distribution channel. The expansion outside Davao Region is also parallel to its long-term objective of achieving its target revenue and its vision to be the preferred pharmacy for medicines and medical supplies. In Market Penetration, implementing its Loyalty Program is a crucial strategy to provide Amesco a business platform that would encourage loyalty among its customers. Opening new branches in key geographical locations outside of Davao City is also a fundamental component in implementing the market penetration strategy. These strategic implementing actions are expected to further boost the attainment of the targeted revenues in 2026. Moreover, the value proposition of Amesco is a one-stop-shop for medicine, medical supply and medical equipment needs with excellent customer service. Half of its value proposition is dependent on its Pharmacy Assistants. Hence, the proposed strategy of workforce development will help the company consistently deliver its value proposition of excellent customer service. The plan recommends the regular training of Pharmacy Assistants, so they will be able to provide excellent customer service to customers consistently. Lastly, capital augmentation is needed for Amesco to fund its expansion of branches. It needs bank loans to finance the construction of new stores, acquire the required equipment in the store, and purchase inventory requirements for the new branches.