Power of Buyers * price sensitivity * No brand identity, customer more care about price rather than which drug store to buy * No bargaining leverage * buyer volume * No buyer switching costs, same drug they can buy at any drug store * product differences * No brand identity, costomer more care about price rather than which drug store to buy * Many key players are acquiring small stores, industry concentration

Advanced 5 forces Analysis * Population aging * As the population ages, demand for pharmaceutical products to address health ailments, such as chronic illnesses, typically rises. * According to data from the Centers for Disease Control and Prevention, an estimated 89.7% of individuals aged 65 and older used a prescription drug during a 30-day period between 2009 and 2012 (latest data available). As a result, the industry benefits from strong need-based demand for prescription drugs from this age demographic. In 2015, the number of adults aged 65 and older is expected to increase. * External competition for the Pharmacies and Drug Stores industry * Pharmacies and drug stores face mounting competition from mass merchandisers (e.g. discount stores, supercenters and warehouse clubs), mail-order prescription providers, online pharmacies, convenience stores, wholesalers (e.g. Costco) and health clinics. Due to intensifying competition, the industry will contend with many external competitors cutting into consumer demand for industry products. External competition is expected to increase in 2015, representing a potential threat to the industry. * Per capita disposable income * The level of household income determines consumers' ability to purchase industry products. Although need-based demand for prescription drugs is typically less susceptible to changes in consumers' discretionary income, sales of