Business Case Study: Cvs

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  • Topic: Rite Aid, CVS Caremark, CVS/pharmacy
  • Pages : 6 (1710 words )
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  • Published : May 7, 2013
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CVS Caremark Corporation

BUSI 4349

Table of Contents

Executive Summary……………………………………………………………………………………….. 1 SWOT Analysis………………………………………………………………………………………………. 2 Problem Statement: Main Issue……………………………………………………………………. 3 Three Proposed Strategies………………………………………………………………………….… 4

Strategy 1………………………………………………………………………………………..…. 5
Strategy 2………………………………………………………………………………………..…. 6
Strategy 3………………………………………………………………………………………..…. 7 Preferred Strategy……………………………………………………………………………………….. 8 Implementation…………………………………………………………………………………………… 9 Control Measures/Feedback Loop…………………………………………………..…………. 10 Appendix………………………………………………………………………………………….………… 12 Works Cited……………………………………………………………………………………….………. 13

Executive Summary
According to Standard & Poor's Ratings Services CVS Caremark Corp. went to stable from negative. CVS has been able to keep up the competitiveness with the other leading drugstore chains. They have created immaculate brand equity and have high hopes in continuing that reputation. Within the next few years the number of people in the target market is going to increase rapidly and with strategy I am proposing, I believe that I can help with the future success of this Corporation.

It is now 2013 and opening up stores in new locations in states where CVS is nowhere to be found would the most successful strategy to try and fulfill. I believe that CVS is in a comfortable financial position to be able to construct and build new operations in new locations.

Situation & SWOT Analysis
As the company has presence across the value chain of pharmaceutical services, CVS Caremark “is the largest pharmacy health care provider in the US” (datamonitor). This company drives their revenues through inexpensive pharmaceuticals to help improve the health of those in need. “Approximately 75% of the US population lives within three miles of a CVS store.” (Pearson) With these positive strengths in mind I suggest that CVS Caremark work hard to try and keep up this reputation and work on the issues presented in Exhibit 1 of the Appendix. Strengths

One of CVS’ main strengths is that CVS has created strong brand equity. They have provided exactly what all customers’ need like easy access like stated before 75% of Americans live within 3 miles of a CVS. 65% of stores are open 24 hours a day and they even provide ExtraCare health cards which allow you to have extra savings. I believe all of these are strong qualities within the CVS Corporation and that even with tough economic times should not be affected. Weaknesses

Now although CVS has many promising strengths they are not problem free. Some weaknesses that have come to my attention are the fact that they are not as prevalent as Walgreens (a huge competitor) nor is there a CVS is every state in the United States. If CVS wants to stay the number one company you are going to have to start producing this business in every state. A growing Wal-Mart is also not too far behind with increasing prescription sales. Opportunities

CVS is in line for huge opportunities coming their way. Within the next 20 years 70 million Americans will turn 65. “People who are 65 and older fill more than 24% of all prescriptions annually” (Pearson) Another prevalent opportunity is the fact that within the next 10 years healthcare will be available to almost every citizen so I believe that CVS can use this as a huge opportunity to gain new loyal customers. Threats

The presence of industry competition creates a complex pricing model for CVS. Although CVS may seem like they are more expensive they offer many coupon and savings opportunities that people do not take advantage of. The most obvious threat is Walgreens who is the nation’s largest drugstore chain with their growing retail pharmacy market share. Weaknesses to be addressed

The issue that I feel is the most relevant is the fact that CVS’ competitors are too close in the market....
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