Innovation Zen

Wal-Mart recently started selling generic prescription drugs over its stores for $4. It is already covering 38 states throughout the United States and its portfolio includes more than 300 prescription drugs. The question that arises is: does this move from the giant retailer represent a disruptive innovation to traditional pharmacies?

The InnoBlog has an interesting post covering the matter: “historically, Wal-Mart has built its business by disrupting its industry leaving mom and pop retailers in its wake as it introduces low prices to communities across America. This recent price-cut not only benefits non-insured Americans, ever desperate to keep their rising medical costs low, but also insurers who have to shoulder less of their subscribers’ prescription drug costs. This low-end disruption is built on Wal-Mart’s strong suit: its ability to lower prices and make more products available to Americans who would otherwise be unable to afford them.”

Do you think Wal-Mart will be able to disrupt pharmacies or both models will keep working, serving customers with different requirements?