1. Group Members: Matt McIntyre Wanga Omoto Shaun Lovell Josh Critch Keith Matheson

2. ●Canada's largest pharmacy chain (more than 1,181 stores) ●They also own 58 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy and eight luxury beauty destinations operating as Mural. ● owns and operates 63 Shoppers Home Health Care stores ●Founded by Murray Koffler ●Koffler family still retains ownership ●They also own Super pharmacy which is in Israel, Poland, and China, and uses the same logo as Shoppers Drug Mart.

3. ● Fiscal 2009 sales of approximately $10 billion ● Leader in Canada’s retail drug store marketplace and number one provider of pharmacy products and services. ● Core pharmacy services such as prescription dispensing and patient counseling ●Jürgen Schreiber has been the CEO sense 2007 ●Before joining Shoppers Drug Mart, he had a five-year career as the CEO of Health and Beauty Europe at A.S. Watson & was responsible for more than 4,000 stores in 23 countries.

4. ● Total Net Earnings have increased from $364 498 in 2005 to $584 908 in 2009 (in thousands) ● Since 2005 annual revenue has increased by almost half a billion each year. ● Profit has increased from over 3 hundred million in 2005 to over 5 hundred million in 2009. ● According to Statistics Canada, the amount of Health and Personal care stores has increased from under 800 stores in 2005 to 1,234 in 2010, which means the demand for our products has increased.

6. ● Katz Group of Companies is one of the biggest competitors of Shopper Drug Mart. ● It has operations and franchises of over 1500 pharmacies in Canada ● Katz Group Canada comprises more pharmacies than any other retail pharmacy network in Canada and poses a serious threat.

7. Lawtons ●Operates only in Atlantic Canada ●Offer full line of healthcare, beauty and giftware products ●PROfile ●Air miles Reward miles ●MHCSI, leading benefit provider to businesses Jean Coutu ●Operates 378 stores in NB, Ontario and Quebec ●Pro Doc, Quebec based drug manufacturer ●Rite Aid ●Operates 4,700 stores across the U.S ●252 million shares in Rite Aid common stock ●Popular in Quebec

8. Assessing Competition: ● Number one provider in pharmacy products and services ● Jean Coutu has a bigger US/Quebec presence ● Lawtons and air miles ● Lawtons is currently limited to Atlantic Canada

9. Economic forces : ● Canada's economy is set to advance by 2.1 % in 2010 ● Stable unemployment rate of 8% inflation 3.4% ● Domestic demand advanced by 0.9% Demographic forces : ● Total health expenditures are approximately $97.6 Billion, an increase of $6.5 billion over 1999-2010

10. Technological forces: ● August 28, 2010 opened its new energy-efficient store in Woodbridge. reducing their environmental footprint by building in energy-efficiency measures early in the store design. Social Responsibility: ● Donated $10000 to the relief fund in Haiti, creating a good public image Government and political forces: ● Under the Ontario Drug Benefit Program the government is set to reduce prescription drug prices by 50% poses a great challenge

11. Strengths : ●Profitable company ● Wide variety of products and services (food, over the counter pharmacy, cosmetics, fragrances, cards, Canada post office) ● Revamped its stores, creating a concept store with more space and a modern look ● Big box locations over strip mall/smaller locations ● Loyal customer benefits such as Shoppers Optimum ● Canada’s largest pharmacy chain ● Drug sales grew at an annual average rate of 7.9% between 1998 and 2005(statcan) Weaknesses: ● Unlike some competitors Shoppers does not carry the air miles promotion ● 7% drop in third quarter profit in 2010 ● New pressure on pricing and government reimbursement

12. Opportunities: ● The merchandising agreement with Sony, a market leader in consumer electronics is a great avenue to increasing our market share and profitability ● The Shoppers Drug Mart Optimum card can be used as an incentive to increase sales. ● Rogers Communications inc. is partnering with Shoppers Drug Mart to sell cell phones and smart phones at more than 30 stores, increasing the diversity on the product offered. Threats: ● The competition is the biggest threat. (Lawton’s Drugs and Jean Coutu in particular) Need to find ways to increase our presence in the market ● The Ontario Liberal Government legislation that is set to reduce the price of prescription drugs could reduce our profit margins substantially. ● The stringent laws on the sale of generic drugs can increase the number of lawsuits brought against Shoppers Drug Mart