CVS Research

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CVS Research
Contents TOC \o "1-3" \h \z \u Excutive Summary PAGEREF _Toc25274010 \h 3Case Statement: PAGEREF _Toc25274011 \h 3Vision and Mission Evaluatin: PAGEREF _Toc25274012 \h 3Milestones: PAGEREF _Toc25274013 \h 3Organization Background PAGEREF _Toc25274014 \h 4Reccommendations PAGEREF _Toc25274015 \h 7References8
Executive Summary
Case Statement:
CVS Pharmacy is a national company that has been in high competition with companies in the same industry and has a great challenge of keeping up with the consumer expectations that keep changing.
Vision and Mission Evaluation:
The mission and vision of CVS pharmacy can add some parts so as to be stronger. This is including self-concept, customers, philosophy, products and services the public image concern and the issues and concern of its employees. Notably, for the vision and mission of the company to be a bit more effective and get to meet a strong statement of the mission criteria for the company, it should add the number of markets and its concern for growth, survival and profitability.
Milestones:
The first CVS store that was selling beauty and health products was founded in Lowell Massachusetts by two brothers Sidney and Stanley Goldstein and a partner by the name Hoagland in 1963.In the year 1967, CVS begun the operation of its first stores with pharmaceutical departments where it also opened locations in Rhode island, Cumberland and Warwick and in 1991 it launched refills for online prescription.
Generic drugs demand increase and the aging population are the two most important noted factors when it comes to the external factors. Basically, the population of the aging will be needing more prescribed medications. This will make customers in large numbers to come to the CVS locations and use their pharmacies so as to get the prescribed medicines. Additionally, the demand of generic drugs will attract more customers because CVS has its own brand in some of its medicine and also have a lot of medicines from other brands that the customers can buy with no need to go to the doctors for them.
Organization Background
CVS pharmacy first opened their store in 1963 and since then they have had a steady market performance that is strong in the clinic health industry. They have achieved this through focusing more in their commitment in creation of a better future and customer service in health care. The CVS pharmacy offers three services to its customers which include, minute clinics, retail pharmacy and PBM pharmacy Benefit Management. The dominate success of CVS in the industry has changed the company into one of the greatest health care providers in the U.S.A.
In 1969, the company was sold to Melville corporation. Five years down, CVS had achieved greater sales totaling to $1million annually. In 1978, CVS made a choice of having to be differentiated from competition where it opened small beauty and health store in malls that were enclosed. Notably, in 1996, the CVS corporation had become a company that was trading publicly in the NYSE under the ticker of CVS and Stanley Goldstein as its first chairman. The first online pharmacy website of CVS was launched in the United States as CVS.com. In 2001 the pharmacy retailer became the first to launch Extra Care Card a loyalty card program. Withal, the annual sales of CVS went above $22billion.
CVS is the leading in the clinical health management and customer service industry. It currently stands at $99billion in revenues annually and was in 2010 ranked 18th in the fortune 500. The pharmacy operates over 7000 drugstores in the country making it the most in the U.S. The wide objectives of the company are run from Woonsocket which is their headquarters in Rhode Island. Notably, it has over 560 MinuteClinic’s in approximately 25 states. The PBM of the company assists the customers with services through filling prescriptions via mail and also in provision of clinical expertise.
Provision of greater access, encouragement of behaviors that are healthy and lowering of healthcare cost of customers overall is the top most advantage that makes pharmacy the largest provider of health care in the United states. The company provides network access to close than 64,000 pharmacies and that is excluding the 7,000 pharmaceutical stores that they operate too.
Internal Analysis
CVS has developed a strategy that focuses on two important factors that is, customer service that is superior and cost leadership. The business of CVS mainly focuses on the provision of innovative solutions of the pharmacy and client service that is of quality so as to expound the outcome of their clients clinically. Also, a healthy benefit plan for members while aiding the clients and the members of the plan a better manageable healthcare cost overall.
CVS uses a strategy of cost leadership in their products in retail such as greeting cards, candy and beauty supplies. According to them, they offer more pharmaceutical services than other chain of stores. In one of the annual reports, the repeats of CVS on how important use in ease by its customers led to an increase in revenues. Their PBM (Prescription Benefits Management) are important in the provision of superior customer service.
Technology is actually the base of PBM services. The information technology of CVS is the one that allows the company to focus on improving service continually and offering products that are personalized to customers. The company has been the first in marketing with newer services and products that are considered profitable by the analyzation of PBM data. Additionally, there is an adaptation that is constant which is the CVS ultimate strategy that allows them match their customers preferences and needs with the inventory.
As US largest pharmacy healthcare providers, CVS is very large. The merger between CVS and Caremark led to the provision of a network of 64,000 pharmaceutical stores and 7,000 CVS stores. Undoubtedly, CVS have a greater chance of getting discounts from drug manufacturers because of the control they have...