PESTEL Analysis of Walgreens

by Shamsul
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PESTEL Analysis of Walgreens

Analyzing the PESTEL Analysis of Walgreens Boots Alliance will allow the company to make smart choices by looking at outside trends and factors. This analysis will consider the important things from the outside world that affect the business.

The next part talks about examining Walgreens Boots Alliance through PESTEL Analysis. This means we’ll check the factors from the outside world: politics, economics, social, technology, environment, and legal. It’s worth remembering that this analysis will be tailored to the market, and how these factors affect the company can change when the market condition changes.

Political Factors | PESTEL Analysis of Walgreens

Trade Partners

  • By forming and keeping good relationships with other businesses in various countries through trade agreements, companies like Walgreens Boots Alliance can gain valuable knowledge, skills, and technology.
  • Through trade blocks, companies like Walgreens Boots Alliance can ensure that their products and services are available through different outlets and distribution networks, making it easy for consumers to buy and enjoy them.
  • Trade agreements can help companies like Walgreens Boots Alliance by reducing the money they spend on resources, making business cheaper, and bringing in more skilled workers.
  • Companies like Walgreens can benefit from trade agreements and treaties that have been made and approved by the countries they come from.

Tax Policies

  • When the government has favorable tax rules that encourage business growth and progress, companies like Walgreens Boots Alliance can get bigger. This, in turn, helps the country’s economy by creating more value.
  • As a result, businesses won’t make consumers pay higher prices because of their operating costs. This means consumers can enjoy good and competitive prices.
  • When the government provides subsidies and gives good tax rates, it helps Walgreens Boots Alliance keep its business costs low. This way, the company can stay competitive.
  • When the government has tax rules that are good for businesses, it makes it easy for companies like Walgreens Boots Alliance to grow and get bigger.

Stability of Government

  • If the government is very stable and reliable, it can bring in more resources to help the entire industry grow. This, in turn, can make companies perform better and become more competitive.
  • When the government is stable, it attracts investors to businesses like Walgreens Boots Alliance. This, in turn, leads to growth and development in infrastructure and improves the company’s international reputation.
  • When a country is politically stable and strong, it makes it easier for businesses like Walgreens Boots Alliance to have smooth and trouble-free business connections with other countries.
  • When the government is stable, companies like Walgreens Boots Alliance can grow in their local area, other regions, and even across the world.
  • The robust government systems and organizations help Walgreens Boots Alliance grow and progress.

Competition Regulations

  • Rules that oversee competition are crucial to protect everyone involved and to make sure the rights and interests of those connected to it are safe.
  • Competition rules also help the government watch, limit, and manage imported goods to support local businesses in their growth and expansion.
  • This will ensure that companies are playing by the rules regarding their products, as well as their business methods and plans.
  • It’s crucial for the government and political groups to keep an eye on the competition.

Economic Factors | PESTEL Analysis of Walgreens

Lack of Jobs

  • When more people are out of work, it could mean there’s a lack of skilled workers. This can be bad for consumers because it might make products more expensive. This is because bringing in workers from outside sources can cost more for businesses, and they might raise their prices to cover those costs.
  • When more people are without jobs, it means there’s less money going around in the economy. This can directly impact how well companies like Walgreens do.

Interest Rate

  • When interest rates are not too high, personal loans become more affordable, which encourages people to buy and spend more. This can then lead to increased sales, more consumption, and more people shopping at businesses like Walgreens.
  • Reasonable interest rates would also let people borrow money through personal loans.
  • Getting loans for businesses would also support the growth and construction of the industry’s infrastructure on a big scale.
  • An average interest rate will assist businesses, including companies like Walgreens, in borrowing money from banks.

Customer Spending Patterns

  • Furthermore, these patterns are also affected by other economic signs like how fast prices go up, how much it costs to borrow money, and how many people are without jobs.
  • These increased consumer habits can be made better by having good product quality and smart advertising tactics.
  • The fact that people are spending more also shows that they have more money to spend, and this is important for making the economy healthy and encouraging more spending.
  • It’s better when people are buying more because it means they’re getting more of the products sold by the company.
  • The way people spend their money is really important for companies like Walgreens and how well they do.


  • When the cost of things doesn’t go up much, people have more money to spend, which can make businesses more competitive. But this might lead to companies trying to outdo each other in price wars that aren’t fair to the consumers.
  • When things get more expensive faster (high inflation), people have less money to spend, which can make it harder for businesses to grow. This can hurt companies and make consumers less confident.
  • So, this will boost the economy and give people more money to spend.
  • A reasonable price increase can also support business growth and positively impact consumers to feel more confident and willing to spend their money.
  • For companies like Walgreens to do well, the economy needs a reasonable increase in prices.

Social Factors | PESTEL Analysis of Walgreens

Wellness Trends

  • Because people are more concerned about their health, Walgreens Boots Alliance has started working with others and doing things to help, like caring for physical, mental, and emotional health.
  • Walgreens Boots Alliance now talks about health in their advertising and has added health-related features to their products based on what customers want and how they behave.
  • The focus on being healthy and well has affected the choices and habits of what people buy.
  • More and more people are following wellness trends.


  • Walgreens will benefit because they pay attention to making things of good quality.
  • When people know more about a product, they tend to like quality and understand what the product does. This understanding is what makes them buy the product again.
  • So, they will pay attention to good buying habits, which will help Walgreens Boots Alliance because it’s in a special and strong position compared to others.
  • Having more education means that people will be more informed about what they buy and how they use things.
  • More education means more smart, skilled, and knowledgeable people are available to work for Walgreens.
  • Having more people with a good education is good for many reasons, and it will help Walgreens Boots Alliance.


  • This group serves as a sort of spokesperson for Walgreens and encourages younger people to become loyal customers too.
  • It’s important for Walgreens to have a reasonably well-off middle class because they are its current customers and supporters.
  • Furthermore, having a younger population means that Walgreens Boots Alliance can find more educated and skilled workers, making their talent pool bigger and stronger.
  • Having more young people is good for Walgreens because it means they have a bigger group of potential customers.

Family Structure and Size

  • Parents are the ones who make the important decisions, but they also listen to their kids’ ideas and requests.
  • So, Walgreens Boots Alliance uses both methods to attract customers.
  • These parents, who have the final say, are swayed by advertising, store manager opinions, and suggestions from friends and family.
  • In the present market, Walgreens Boots Alliance mainly deals with families who have parents, two older kids, and sometimes a younger one.
  • This is also important to figure out how people buy things.
  • The type of family and how big it is deciding how often and what they buy.

Technological Factors | PESTEL Analysis of Walgreens

Research and Development

  • When companies like Walgreens Boots Alliance make changes, it helps them become much better than their competitors.
  • Companies benefit from new ideas and improvements as the industry grows and gain a better position compared to other industries in the world market.
  • More money being put into research and development has created more new and improved things.
  • The big investment helps industries move forward by giving them new, flexible, and better ways to do business and handle their operations.
  • A lot of money is being put into research and development, both in the country and from international sources.

Internet Penetration

  • Lots of people in the country and all the places where people shop is using the internet a lot.
  • Because more people use the internet, Walgreens Boots Alliance has gotten better at providing good products and services. They can also talk with customers and advertise in smart ways.
  • Walgreens Boots Alliance is using the internet a lot to connect with customers, do marketing, and talk to people directly. They can also get feedback from customers this way.
  • More people using the internet shows that the population is progressing and well-informed, which is good for Walgreens.
  • Almost everyone has a smartphone to use the internet, and they also have access to laptops and computers.
  • People use the internet a lot for both their personal and social lives, as well as for their jobs.

Impact of Social Media

  • Companies like Walgreens Boots Alliance are now using social media to find new employees. This shows that businesses are changing the way they use social media.
  • Walgreens Boots Alliance talks to customers, gets their opinions and tells them about deals and offers on their social media accounts.
  • More and more, businesses like Walgreens Boots Alliance are using social media to collect consumer data and information.
  • Many people in these groups use social media to stay connected with others.
  • There are a lot of young people and middle-aged folks in the population.

Tech Upgradations

  • The nation has a good technology infrastructure.
  • Walgreens Boots Alliance is really good at using advanced technology, and they keep finding new ways to make their business work better and smoother through innovation.
  • Having better technology also makes other countries want to invest their money here, which helps our place grow and get better.
  • A stronger technology setup also makes it more appealing for foreign investors to put money into our country, which helps us grow and progress even more.
  • Many different industries are coming up with new and clever ideas a lot, and this helps companies like Walgreens Boots Alliance stay ahead and move forward.
  • More and more, companies like Walgreens Boots Alliance are using new technology and creative ideas to improve their business and get things done more effectively.
  • Technology is getting better and improving quickly.

Environmental Factors | PESTEL Analysis of Walgreens

Investments in Renewable Energy

  • Walgreens Boots Alliance has a little hydro plant that they control themselves and use to help with their manufacturing.
  • Walgreens Boots Alliance and others in the same industry are using more solar power and water energy for their operations and business activities.
  • They are doing this to make the environment cleaner and reduce the harm they cause to the planet.
  • The entire country, along with all its different industries, is slowly shifting to using renewable energy for their work and business tasks.

Waste Control

  • To help the environment, Walgreens Boots Alliance already has a specific way to deal with and get rid of waste in a way that doesn’t harm the environment.
  • Walgreens should join and officially sign up with waste management groups and organizations to make sure they follow the rules, keep things in order, and prevent any problems down the road.
  • The country has strict rules for handling and controlling waste.

Green Approach

  • Walgreens Boots Alliance also partners with suppliers and distributors in its supply chain who follow good practices for protecting the environment.
  • Walgreens has made a new line of eco-friendly products that are like their regular ones. They want to slowly make these green products more important to help the environment.
  • Walgreens Boots Alliance often does things that help the environment as part of its corporate responsibility.
  • Companies are also joining in and creating environmentally friendly products to attract customers.
  • People in the country and everywhere are starting to like eco-friendly products and services. These are made and sold using methods that don’t harm the environment and can keep going for a long time.
  • More and more people are becoming aware of taking care of the environment, and this has led to a rise in the eco-friendly way of living.


  • Like many other companies, Walgreens Boots Alliance is also launching a new line of products made from recycled materials for consumers.
  • Walgreens Boots Alliance has set up special places where you can drop off items to be recycled.
  • People are starting to ask for products that have been made from recycled materials.
  • People are getting smarter about recycling and asking for better ways to get rid of things that can be recycled.
  • People are paying more attention to taking care of the environment and recycling.

Legal Factors | PESTEL Analysis of Walgreens

Laws Regarding Jobs

  • At Walgreens Boots Alliance, the HR department often holds employee workshops and training sessions. This helps get employees involved and teaches them about employment laws and other legal rules.
  • Walgreens Boots Alliance follows the rules for employing people and tells its employees about these rules when they are hired.
  • Employment contracts make sure that everyone involved gets along well and that there are no misunderstandings or secret agreements.
  • The government approves these contracts, and they cover all the details of employment.
  • Laws in the country require businesses to create legal contracts related to employment.

Anti-discrimination Laws

  • Walgreens ensures this by obeying the rules against discrimination and constantly investing in training and development sessions for its employees.
  • Walgreens also makes sure there is no unfair treatment in the company and the workplace culture is free from harmful behavior.
  • Walgreens, like other companies in the industry, treats everyone fairly regarding job opportunities.
  • All employees regularly take part in training and workshops about diversity. This helps them avoid treating people unfairly or with prejudice, which could lead to serious consequences.
  • The company obeys the law against unfair treatment in everything it does, from hiring to giving people promotions.
  • Because of this, Walgreens has always welcomed different kinds of people to work for them and has made rules inside the company to encourage diversity.
  • There are lots of people who come to this country from other places, and businesses from here also have operations in various places outside the country.
  • The country and people here come from many different backgrounds.

Health & Safety Laws

  • Walgreens cares a lot about keeping its employees safe and healthy; they’re always trying to improve it.
  • Looking after the well-being of employees includes not just their physical health but also their feelings and thoughts.
  • Reputable groups and organizations often check with companies to see if they are using safety measures, practicing safety drills, and taking precautions at the workplace.
  • There are strong rules about keeping employees safe and healthy at work.

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