Cvs Swot Analysis

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CVS Health Corporation is the second leading pharmacy benefits manager. They provide clinical and pharmacy services in drug stores and retail stores worldwide. It offers a variety of operations from prescription management to walk-in-health services, and in store or mobile assistance to the consumer. The corporate sector provides management and organizational services to support the general operations of CVS. I. Determine the Firm’s Health CVS performs through two outlets: Pharmacy services and retail/long-term care. The pharmacy services accredit 60% of sales with dispersing over 1.2 billion prescriptions per year. CVS accounts for 28.9% market share of the pharmacies and drug stores industry in the US, falling second to Walgreens. [1]…show more content…
Everyday they want to get close to home with each person and their unique adventure to achieve the goal of being more innovated pharmacy worldwide. CVS has five core values that they strive from: Innovation, Collaboration, Caring, Integrity and Accountability. [5] They use innovation to show a new method of how people view pharmacies and the idea behind them. Collaboration is used in their retail segment, where they are partners with Target. Caring is how they care for every person that encounters CVS. The integrity is how CVS holds themselves to high standards and what they expect from not only themselves but the consumer. Finally, accountability they uphold their company to the faults that may be encountered. They have a motto of “Health is everything”. [5] When looking at CVS’s top competitor, Walgreens in the comparison of the customer segment in which the company focus on is that although they are similar in the sense of being innovative. Walgreens focus is to expand the company as where CVS is more sensible values in the industry. This could have the effect of why CVS has a lower growth rate than Walgreens which is 12.16. [11] This is one of the broader focus the main focus of both are to expand and create a better way to experience…show more content…
Through these advantages, CVS does not compete on a cost advantage level but rather on differentiation advantage. With CVS’s revenue on a rise these last few years and Walgreens growth rate increasing at what it is CVS had to find a way to separate themselves from the other groups in the industry. They offer both dynamic and operating capabilities. Dynamic capabilities through their MinuteClinics and acquiring Target’s pharmacy as well as creating brand recognition increasing every time they are on a new shelf somewhere. They offer operating capabilities to their customers by adding value, convenience, and increased accessibility by allowing their brands to be found in more locations and supplying convenient and quick health clinics. Also, to their investors with growing revenue and increased growth rate, as well as, value to their employees through employee discount and by providing a healthy and promising work environment. CVS’s competitive advantage adds great value and some rarity in their industry. As far as imitating goes, Walgreens and Rite Aid have already made great strides in this direction. Rite Aid being the only other company to have PBM since Walgreens’s was recently acquired back in 2011. [11] Walgreens slowly but surely acquiring all of Rite Aid stores, while Rite Aid diminishes to mail-in orders, specialty pharmacy, and
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