In our society, many people suffer from ailments and diseases that require medication to help them manage their illnesses while trying to maintain a normal lifestyle. Approximately 75% of the US population lives within three miles of a CVS (Datamonitor,2011), a retail pharmacy which sells prescription drugs and a range of general merchandise including over the counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards, and convenience foods (Mergent, 2012). Pharmacy services for CVS also include a mail order pharmacy service, specialty pharmacy services, plan design and administration, formulary management and claims processing. CVS also possesses in store health clinics called MinuteClinics. In 2011, CVS employed approximately 211,000 people in 44 states, the District of Columbia and Puerto Rico. They have 7,025 retail stores, 569 MinuteClinic locations, 49 retail pharmacy stores, 18 mail order pharmacies, 6 mail service pharmacies, CVS.com and Caremark.com websites. Their vision is to improve the quality of human life. They strive to provide expert care and innovative solutions in pharmacy and health care that are effective and easy for their customers. Their strength lies in establishing a strong presence in sectors such as specialty pharmacy and retail clinics. CVS was established in 1963 in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein along with their partner Ralph Hoagland. CVS is short for Consumer Value Stores. In 1967, CVS opened its first store with a pharmacy department in Rhode Island. During 1969, CVS is sold to Melville Corporation. CVS achieved $100 million in annual sales in 1974. In 1978 CVS sets itself apart from competitors by opening small healthcare and beauty aid stores in enclosed shopping malls. Becoming the 15th largest pharmacy chain in the United States in 1980, CVS possesses 408 stores. Stanley Goldstein, cofounder, takes over as chairman and CEO of Melville Corporation in 1987. The next year, CVS celebrates its 25th Anniversary, with 750 operating stores. CVS acquired a mass majority of their stores from People Drug (500 stores), Eckerd (1,268 stores), Revco (2,500 stores), Arbor Drugs of Michigan (200 stores), Long Drugs (541 stores) and Sav-On and Osco drugstores from Albertson (700 stores). These acquisitions enabled CVS to end the year of 2005 as the largest pharmacy retailer in America, possessing more than 5400 locations. . Their headquarters is located in Woonsocket, Rhode Island. CVS became a part of the New York Stock Exchange in 1996 after restructuring their brand. Caremark was formed by Baxter Healthcare Corporation, a healthcare company that treated and housed centers for disease management such as the Hemophilia Patient Home Health Care and IGIV Home Care Services. Caremark decided to make pharmaceutical services its core operating unit in 1998. Caremark Customer Care Centers are then opened and recognized extensively, creating their own success before they merged with CVS. In 2006 and 2008, they were recognized for customer satisfaction excellence by J.D. Power and Associates. They were best known for their mail service offerings and online prescription refills. CVS Caremark Rx, Inc and CVS Corporation completed their merge in 2007, which they then became CVS Caremark, the nation’s top pharmacy services provider. The merger of CVS and Caremark has uniquely positioned the company to deliver significant benefits to health plan sponsors through effective cost management solutions and programs that engage plan members and promote healthier and more cost-effective behaviors. In addition, the merger has enhanced the ability to offer plan members and consumers expanded choice, greater access and more personalized services (Datamonitor, 2011). There are many aspects of this company that set them apart from their competitors. The first one being their Extra Care loyalty card program, a card that you...
References: Brigham & Ehrhardt. (2011). Financial Management: Theory & Practice. Mason, Ohio: Cengage
CVS Caremark (2009). Retrieved from http://www.cvs.com
Mergent (2011) CVS Caremark Corporation
Please join StudyMode to read the full document