CVS Caremark Company along with its many subsidiaries is the largest health care pharmacy provider in the USA. CVS faces close competition with one of its competitors Walgreen, other competitors seem not to be of very significant size. CVS aims to deliver benefits to health plan sponsors in a cost-effective and innovative way. CVS offers services that give the customers wider choices and greater access to personalized services leading to better health care. CVS effectively runs pharmacy benefits management, mail order, and specialty pharmacy division with 7,300 CVS pharmacy retail stores.
(CVS Caremark. Annual Report 2011) CVS Company’ s strategically positioning has been like a fox which is opportunistic and open in making choices. It commercial and financial convictions both seem to be the scale and scope which will be the profitability drivers for the industry. CVS has grown via acquisitions and it seeks its financial conviction through scale and scope via acquisitions only. In the past CVS in between years 1997 to 2009 made six large acquisitions along with many small ones which extended its scope and scale of operations which has influenced it's strategic positing too.
Because of its different and frequent acquisitions, it has inherited many different stores at many places all over the country which makes it difficult for the company to run all these on the same level and smoothly for which it has started assessing on the basis of stores profitability and have closed down many stores too. (CVS Caremark. Annual Report 2011) The industry in which CVS operates the potential of growth of sales is increasing that is the pharmacy sales, further, these sales are greatly influenced by the benefits managers and other intermediaries.
The government also exercises great influences by setting prices or setting limits for the prices of drugs. There is an increasing trend seen in the industry and due to advancement in technology that the customer can now order and receive their prescriptions over the internet or emails which has reduced the need to physical retail stores.
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