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The Cvs Web Strategy: an Evaluation of the Challenges and Advantages of Integrating an Online Pharmacy

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The Cvs Web Strategy: an Evaluation of the Challenges and Advantages of Integrating an Online Pharmacy
THE CVS WEB STRATEGY: INTEGRATION OF AN ONLINE PHARMACY

THE CVS WEB STRATEGY: AN EVALUATION OF THE CHALLENGES AND
ADVANTAGES OF INTEGRATING AN ONLINE PHARMACY

By
Leah Bouk
Wingate University

1

THE CVS WEB STRATEGY

ABSTRACT
This paper discusses the considerations surrounding CVS Pharmacy’s initiative to become a part of the virtual drugstore industry. Specifically, the organizational structure, fundamental design of the autonomous innovation, and strategic positioning of CVS.com were considered in evaluating the drug store’s ability to react to the disruptive technology. This paper serves to evaluate the effective initiatives, problems, and possible solutions to the considerations outlined above. As a result of this analysis, one can deduce that acquiring the web company
Soma.com, instead of creating its own online component, was a successful strategy for the autonomous innovation. Shortfalls include not executing a strategy to circumvent the MerckMedco mail order dilemma. Ultimately, a recommendation is that CVS.com differentiate itself by personalizing customer home pages and by fostering relationships with prescribing healthcare providers. 2

THE CVS WEB STRATEGY

TABLE OF CONTENTS

Abstract…………………………………………………………………………….2
Introduction………………………………………………………………………..4
Landscape…………………………………………………………………………5
Organizational Structure…………………………………………….…………….6
Autonomous Innovation…………………………………………………………...8
Strategic Positioning……………………………………………………………….9
Summary…………………………………………………………………………..10
References…………………………………………………………………………11

3

THE CVS WEB STRATEGY

THE CVS WEB STRATEGY: AN EVALUATION OF THE INTEGRATION OF AN
ONLINE PHARMACY

INTRODUCTION
Strict regulation throughout the healthcare and pharmaceutical industries arguably slows the advancement in technological innovation, especially when compared to the computer and automobile industries. Therefore, innovation in a multiproduct, integrated and hierarchical


References: Web Strategy, 2001, p.11). (CVS: The Web Strategy, 2001, p. 6). After thorough examination of both options, CVS decided to acquire the start-up company, since it would be quick to implement (only 3 to 4 months), it (Teece, 2009, p.59). in rapidly and cost-effectively strengthening a brand” (Gallaugher, 2008, p.6). for new technology to yield value to the consumer, they can play an important role in the competitive advantage equation” (Teece, 2009, p25)
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