CVS Caremark Corporation is known for being a healthcare provider in the U.S. CVS Caremark Corporation provides pharmacy services to customers all over the USA. The corporation values it customers by managing the pharmaceutical costs that which are set at reasonable prices for the consumer while improving healthcare through its pharmacy benefit management. The Company operates in two business segments:
Pharmacy Services and Retail Pharmacy. CVS Caremark Corporation delivers pharmaceuticals in a wide spectrum along with other products and services. This is done through a large network of drugstores and healthcare delivery outlets in the US. This includes: CVS/pharmacy retail stores, CVS.com. Pharma Care Management Services and PharmaCare Pharmacy.
CVS’s focal point is providing the pharmacy support to individuals requiring drug therapies to treat conditions: e.g., organ transplants; HIV/AIDS; and genetic conditions, such as; infertility, MS, and certain cancers. At close of business March 31, 2007, the company operated 6,208 retail and specialty pharmacy stores and 22 specialty pharmacies. Strengths:
• Ranked as 18 in the Fortune 500 list (2010).• Renowned for having a broad variety of products in pharmacy and one of the leading drugstore chains. • It employs about 200,000 people in about 41 states.• It has about 7152 stores that operate on its retail side (2010). • It has 569 Minute Clinic locations.• 44 retail specialty stores.• It has 18 specialty mail order pharmacies and 5 mail services pharmacies. • Revenue amounts more than ninety-nine billion.• It is known to be the number one provider for prescriptions. • Stores are at the level where a customer will find the environment that is customer friendly. • Ranked as number one in Specialty Pharmacy.
• Known to be the largest employer of Pharmacists and Nurse Practitioners. • It is known as the number one retail clinic operator.• It has become a more of a pharmacy benefits manager.• Stores are at the level where a customer will find the environment that is customer friendly. • Loyalty-card program (Extra Care Card) that encourages and maintains a record of the customer and also gives discounts and savings packages. There are more than 65 million active customers. • Customer base is very loyal, due to the industry heavily relying on references. • Convenient stores make it easier to approach and shop.
• Retail stores are more diversified according to the need of the customer and offering the Caremark Minute Clinic. • The firm has strong brand equity based on their geographic area. • Stores also have photo shop.
• CVS has an online website that holds a large variety of medical products and also provides tips for using a product. • Customer service is strongbased on the policies of the firm. • The corporate social responsibility is strong in the firm. • Invests significantly in technology.
• Specialty pharmacies that are made to cure illnesses like organ transplants; HIV/AIDS; and genetic conditions like infertility, MS, and certain cancers. • CVS Caremark Charity Classic has contributed more than $13 million to hundreds of different philanthropic organization that are dedicated to helping children and families. • CVS Caremark All Kids Can helps children learn and play while providing opportunities for children to get involved in a learning environment. • Recognized by the U.S. Chamber as a Partnership Award finalist for a 4 year relationship Boundless Playgrounds to build playgrounds for children • Beauty 360 holds a strong hold on customers that regard beauty tips as well as beauty products. .
Weaknesses:* Inconsistency in store experiences and instability in the growth of the stores. * Has enough real estate to compete with Walgreens but not smart about where to place stores geographically according to community need. * Sales major focus is on lower margin on products.
* Security Issues* Lawsuits and Government regulation issues.Opportunities:* Invest significantly in acquired stores like (Eckerd, Osco, Savon, Longs). * Invest in new acquisitions, like Universal American Corp.’s Medicare Part D. * Growing photo development market ensures good future prospects. * New customer base regarding Beauty 360.
Threats:* Traditional and non -traditional competitors. (Walgreens, Wal-Mart, Jewel-Osco, Dominick’s, etc.) * Lack of Pharmacist being produced in the labor market* Market share losses and the unstable growth of the firm.
Recommendations:After reviewing the S.W.O.T. information for the CVS Caremark Corporation I found that there are a few discrepancies from a consumer’s point a view. That is being myself, the writer and a few other individuals that I interviewed concerning CVS’s products’ and services.
In order for CVS to maintain or achieve height in the pharmaceutical market it would have to continue to lower prices to the consumer’s needs, open more 24 hour locations in areas that are in walking distance in poor communities. As far a pharmacy technicians being hired: there should be enough hired to fill orders, answer questions face to face and over the phone at all times.
Products should reflect the consumer’s needs are and what they are requesting. CVS should also hire people that live in the community in which they serve. Security patrol should be on the inside of the store as well as outside the store along with cameras stationed throughout the store. Staff trainings should be held frequently for new hires and refresher trainings should be held to avoid Lawsuits and Government issues.