The Consumer Value Store more famously known as CVS was founded in 1963 in Lowell, Massachusetts. The company started off only selling health and beauty products until 1967 when they opened their first stores containing pharmacy departments. Over the next 40 years, the company would acquire may other smaller pharmacies such as Arbor drugs and Peoples drug which had major presence in the Midwest and the Southeast, the very first mail order pharmacy, Soma.com, and pharmacies that were affiliated with major supermarkets all over the country including stores like Albertson. It’s two most noteworthy accomplishments took place in 2006.
The first was when Tom Ryan, CEO of CVS at the time, acquired the Minneapolis based corporation MinuteClinic, a company staffed by board-certified nurse practitioners and physician assistants trained to diagnose and treat common family illnesses and provide prescriptions when clinically appropriate. The second was the merger between CVS and Caremark, a pharmacy benefits management (PBM) that included a specialty pharmacy and disease management programs. As of 2012, CVS/Caremark has become the largest pharmacy chain the nation.
As of March 31, 2012, it operates approximately 7,352 retail drugstores, 570 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, and four mail order pharmacies. It is a trusted PBM not only to major corporations such as AT&T, Seimens, and IBM but also the Federal Employee Program.
Second quarter statistics for CVS/Caremark indicate an increase in net revenues of 11.8%, operating profit by 3%, and an increase of stock price by 17.3%. The growth of this company is steadily on the rise and remains prominent in an economy that is treacherous and uncertain. In this SWOT analysis, the strengths and opportunities of the company will be identified and as well as the weaknesses and threats the company could potentially face. Strengths
One of the best weapons CVS/Caremark has against its opposition is its marketing position. Today, 75% of the US population lives three miles of a CVS/pharmacy. Although the companies presence only occupies 26 total states, it is one of the most easily accessible to a great majority of the US population.