The opportunity for retail drug store development in rural British Columbia

The drug store industry provides pharmacy service, cosmetic product and other health, beauty, and convenience goods to the population of British Columbia in urban, suburban and rural markets. Many different store formats compete in the industry using a variety of different strategic approaches. The mix of formats varies between urban and rural markets. A review of the value chain and a competitive force analysis identifies key success factors for the industry. The impact on these factors of differences in the rural markets and in particular the small population base must be considered. This determines the essential factors for successful competition in rural markets across the province. Over 25% of the British Columbian population lives in small rural communities. Development or expansion into these markets by companies who can achieve the key success factors will present the opportunity to increase market share and profitability.