Essays on Corporate-Level Strategy Analysis: CVS Pharmacy Case Study

Tags: Pharmacy
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The paper "Corporate-Level Strategy Analysis: CVS Pharmacy" is a wonderful example of a case study on business. The CVS Pharmacy is United States' largest pharmacy chain with approximately 6200 stores in 43 stores. They sell a wide variety of things from pharmacy retail drugs to general merchandise as beauty product cosmetics etc. they span 68% of total revenue in the pharmacy industry after spanning 40 years of dynamic growth. The company other than pharmacy retail business has diversified into pharmacy benefit plan pharmacare, innovative CVS. com, mail order pharma care, Minute clinic, and loyal program as Extra Care card.

These innovations and steady growth achieved with continuous acquisitions make it an important case to be analyzed. The company's main corporate strategy is diversification strategy, which it has accomplished can be seen in detail. The company also adopts a competitive growth strategy to uphold its business. With Porter’ s analysis, it could be seen that it is in an advantageous position in the market, with its main advantages being its geographical position, customer services, prompt stock filling, and the other diversified program. The SWOT analysis also reveals that the company is in the upper phase with strong internal strength and more external opportunities.

The financial analysis also shows that the company is financially in a strong position, its strength growing over years. The company analysis shows its present state and future plans and the balanced scorecard explains its growth perspectives. On sound analysis, it shows a positive result. The suggestions give a path the company can follow post-acquisition. The Scenario analysis helps the company to anticipate competitive stand, helping it to be prepared in an advanced state, thus putting it a step ahead. Company’ s brief: CVS/Pharmacy is one of the United States largest retail pharmacy chain, that approximately has 6,200 stores in the country across 43 states, as well a 3 billion dollars owned PBM pharmacy benefit management and specialty pharmacy subsidiary.

The company sells prescription drugs and wide varieties of general merchandise including over the counter drug, beauty products, cosmetics, photo products, seasonal merchandise, greeting cards, and convenience food. The CVS/Pharmacy is now generating a total of 68% of revenue in the pharmacy business after spanning 40 years of dynamic growth in the retail pharmacy industry.  

References

1. The CVS Caremark homepage, http://www.cvs.com/corpInfo/about/index.html

2. CVS And Caremark to Form Premier Pharmacy Services Company in Merger of Equals Huliq.com, Huliq:Breaking News Huliq BlogsSubmit NewsLogin http://www.huliq.com/33/cvs-and-caremark-to-form-premier-pharmacy-services-company-in-merger-of-equals

3. CVS Corporation http://en.wikipedia.org/wiki/CVS_Corporation

4. http://moneycentral.msn.com/companyreport?symbol=CVS

5. Harrison & St. John, Foundations in Strategic Management, 2nd Edition, 2002.

6. www.balancedscorecard.org

7. G. S. Day, "Tough questions for developing strategies,” The Journal of Business Strategy, 6 (Winter 1986): 60-68.)

8. Porter. M.E. Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, (1980); and, Pitts, R.A and D. Lei, Strategic Management, Thompson/Southwestern Publishing, (2003)

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