Cvs Competitive Analysis
Company Completive Analysis
Porter’s Five Forces:
In this section I will be using Porter’s Five Forces to analyze market competition and attractiveness. The analysis showed that the drug/retail market is highly competitive and the risk of new entrants to the market is fairly moderate to high. Considering CVS’s position in the market as the largest pharmacy chain in the US and its integrated services, CVS has only a few strong competitors. Currently, CVS has a few competitive advantages that should be used to further increase the market share, increase profitability, and reduce costs.
Threat of new entrants (Moderate):
• The market is filled with generic drugs that can easily substitute brand names.
• The capital requirement could be high depending on the …show more content…
• Low switching costs put pressure on competitors to differentiate their services and availability to maintain and gain market share, since most products are similar.
• The market is rapidly growing and changing, forcing competitors to always find new ways to get competitive advantages over the others. SWOT Analysis:
In this section, I will be analyzing CVS’s internal strengths and weaknesses, and external opportunities and threats. The analysis aims to form a good understanding of the company performance, strategies and market position. In addition, it helps in realizing possible external factors that might affect the company positively or negatively.
Strengths:
• In addition to its mail services, CVS has over 9,650 retail locations.
• CVS is the largest Drug/retail company, and economies of scale is helping in reducing costs and increasing profits.
• Brand recognition and image is positive and strong, especially after stopping selling tobacco products.
• CVS has a strong distribution network serving its stores and clients over all the 50 states.
• The company offers many integrated services to individuals and
Porter’s Five Forces:
In this section I will be using Porter’s Five Forces to analyze market competition and attractiveness. The analysis showed that the drug/retail market is highly competitive and the risk of new entrants to the market is fairly moderate to high. Considering CVS’s position in the market as the largest pharmacy chain in the US and its integrated services, CVS has only a few strong competitors. Currently, CVS has a few competitive advantages that should be used to further increase the market share, increase profitability, and reduce costs.
Threat of new entrants (Moderate):
• The market is filled with generic drugs that can easily substitute brand names.
• The capital requirement could be high depending on the …show more content…
• Low switching costs put pressure on competitors to differentiate their services and availability to maintain and gain market share, since most products are similar.
• The market is rapidly growing and changing, forcing competitors to always find new ways to get competitive advantages over the others. SWOT Analysis:
In this section, I will be analyzing CVS’s internal strengths and weaknesses, and external opportunities and threats. The analysis aims to form a good understanding of the company performance, strategies and market position. In addition, it helps in realizing possible external factors that might affect the company positively or negatively.
Strengths:
• In addition to its mail services, CVS has over 9,650 retail locations.
• CVS is the largest Drug/retail company, and economies of scale is helping in reducing costs and increasing profits.
• Brand recognition and image is positive and strong, especially after stopping selling tobacco products.
• CVS has a strong distribution network serving its stores and clients over all the 50 states.
• The company offers many integrated services to individuals and