Step 3: Assess advantage relative to the Competition

According to the Rayport and Jaworski (2003) managers should identify its competitors and their
offerings and relative advantage the company holds. It is stated by Hermann (2008) that firms
need a sustainable competitive advantage if they want to succeed in their business in the long
run. Guardian has the advantage in quality of the brands sold where it is made available through
online, price/promotion, collaborative relationships and consumer forums (Lee, 2009). It is
essential for Guardian as a retailer to identify the selection of merchandise it offers to the public.
The selection of merchandise would improve its brand name, whereby increases the quality of
the products when known brands are sold. For example when
Guardian sells “Amoxicillin” or “Augmentin” as antibiotic brands, it
is more recognizable by the consumer (who has involved in the
consumer decision process) as a quality assured antibiotic, which
would augment Guardian’s quality of brands sold. These quality
products are offered online, where customers can check for the
availability of the products they are searching for and they are able to
purchase it through online banking or by credit cards.

Secondly, the price and promotion of Guardian is another comparative advantage over other
competitors. Guardian provides discounts on its products which generate an increased level of
traffic. These discounts and promotions are posted in the Guardian webpage where it can be
viewed by the customers. It promoted products should be placed in a way that it grabs the
attention of the consumer when he/she visits the webpage. A way of promoting products is by
providing lucky draws such as purchase 3 bottles of “Sunsilk” shampoo and sign up to win a
BMW 3 series, where this would attract and impulse Guardian’s regular customers who are
bored with seasonal discounts. These purchases can be made online as stated above, and the
signing up for the contest can be done by giving the personal information and a contact
method(s) which would be kept in classified. Guardian has developed and maintained a
collaborative relationship with its consumers providing credibility, benevolence and truthfulness.
It uses Direct To Consumer Advertising (DCTA) involving qualified online pharmacists who can
provide information about diseases and products, and help the consumer on purchasing the
products offered. They would also read prescriptions and give the proper medication amount
needed for the customer, and direct them on how to search for the prescribed medicine online.
Guardian offers benevolence towards the consumers where Guardian employees can improve
trust and persuade them to buy the products. Studies have shown that individuals display
behaviors of greater commitment when they share similar values and beliefs (Rod & Saunders,
2009). Lastly, Guardian offers consumers to give feedback on guardian’s services and the
products it sells. Consumers who have used the products and services can provide their reviews
either negative or positive in the consumer forum. By this way, Guardian can improve their
services and products offered to the end consumer.

Competitor mapping to selected segments for Guardian Pharmacy

Target Segment Guardian Watson Caring Independent

Pharmacies
Ages 6-23 (Youth)

Age 24-49 (Middle

aged)
Ages 50-above
(elderly)

Step 4: Asses the resources of the company to deliver the Offering

In order to provide the offerings, the company must allocate and asses the resources that would
be needed in providing them. The company’s resources should be transformed into unique
resources that are specified to the company and to utilize them in a productive manner
(Hermann, 2008). In the case of guardian, it’s well known suppliers, monetary fundings and
employees that can be classified as it main resources. Guardian Pharmacy has its suppliers for
medicinal products and as well as personal care products. One of the main suppliers of medicinal
products is the Glaxo Smith Kline (GSK) who supplies anti-virals, dermatological ointments,
anti hypertensive drugs and Etc. (GlaxoSmithKline, 2007). Unilever, one of the largest personal
care products manufacturer supplies products such as Dove, Pond’s, Sunsilk and etc to guardian.
Secondly, monitory fundings guardian gains from its suppliers. Suppliers would fund Guardian
to carry out a promotional activity, specified to one of the supplier’s brand where it would
increase supplier sales and also bring in more customers and traffic to the pharmacy. By gaining
funds, Guardian offers “Golden Privilege Card” which is offered to senior citizens, where they
can obtain discounts in purchasing goods. Senior customers can sign-up for this option online
and use their Golden Privilege Card code to get reductions from the original price. This in turn
would result in more traffic coming into the stores and to the webpage (Guardian, 2009). Lastly
Guardian holds employees who provide information about the products and try to build a
persuasive atmosphere around the customers. According to Hernandez (2009) employees should
possess critical thinking and problem-solving abilities. As when a problem arises from a
customer, either in bricks and mortar system or online, the employees should be able to critically
use their knowledge and experience to overcome the problem. The parent company of Guardian,
Dairy Farm Holdings Ltd has outsourced its entire financial activities to Cap Gemini who acts as
a capability partner for Dairy Farm Holdings Ltd (n.a., 2005)

Step 5: Assess Market Readiness of Technology

According to Rajamma and Pelton (2009) procurement of pharmaceuticals from electronic

channels is drawing attention across the pharmaceutical industry. In the Guardian webpage, it
offers articles about some of the brands they are selling
such as the MIDI Body Lotion. The consumer who visits
the webpage would be pleased to obtain information
about a product they are willing to purchase. After
reading the articles, they have a better picture of what
they are purchasing and its importance. Secondly
Guardian has a system where the current or target
consumers can place their e-mail address through which
they can updates about products and promotions. By
this consumers would be more aware of the improvement s in Guardian and offers they can enjoy
(Guardian, 2009). Guardian has invested in providing videos and flash files and videos about its
promotions and brand ambassadors which would attract consumers’ attention. This can be
viewed by public easily because most of them have ADSL or broadband connections unlike
Dial-up connections like the past. Guardian could improve its online services by advancing into
Online Transaction Prescription Systems (OLTP) (Navarro, 2009) it involves providing online
prescriptions and administrating claims and financial aspects online. This allows the customer a
private way to obtain the needed medication, convenience and preventions of travel for elderly
customers or people in remote areas (Rajamma and Pelton, 2009). However, Guardian’s
employees should be trained to manage online services and a qualified Pharmacist or a medical
practitioner should be involved in the process, to prevent any deception or overdose of drugs.
Lastly the improvement of employee forums so that it can be easily accessible by the consumers.
Such as consumers can sign-up to make comments or by commenting as an anonymous visitor.
Consumers visiting the profile have the ability to search forum topics by typing key words where
they can easily access the opinions.
References

Rayport, J.F., & Jaworski, B.J. (2003). Introduction to e-commerce (2nd ed.). New York:
McGraw-Hill/Irwin.

Hermann, A.M. (2008). Contrasting the resource-based view and competitiveness theories: how
pharmaceutical firms choose to compete in Germany, Italy and the Uk. Strategic Organisation,
6(3), 343-374.

Lee, K.S. (2009). Competitive advantage in pharmaceutical retail industry: a study of chain
pharmacies in Malaysia. Business e-Bulletin, 1(1), 49-54.

Rod, M., & Saunders, S. (2009). The informative and persuasive components of Pharmaceutical
promotion: An argument for why the can coexist. International Journal of Advertising, 28(2),
313-349.

Hernandez, G.M. (2009, August, 6). Skilled workers needed for the jobs of the future.
Caribbean Business.

Rajamma, R.K., & Pelton, L.E. (2009). An Empirical Investigation of Consumers’ Procurement
of Pharmaceutical Products via Online retail Channels. Psychology & Marketing, 26(10), 865-
887.

GlaxoSmithKline. (1999, October 13). Pharmaceutical Products. retrieved October 1, 2009,

from http://gsk.com.my/pharma-index.html

Guardian. (2009). Retrieved October 1, 2009, from http://www.guardian.com.my/

n.a. (2005, September 1). Outsourcing the Finance Function. Retrieved on 1 October, 2009
from http://www.the-financedirector.com/features/feature355/
Navarro, R.P. (2009). Managed Care Pharmacy Practice (2nd Ed.). Sudbury: Jones and Bartlett
Publishers.