Growth Strategy
C V S C a r e m a r k I n c .
Retail Pharmacy Growth Strategy
:
CVS has managed to successfully grow its company ov er the past few decades both organically and throug h the acquisitions of beneficial companies. It has a proven track record of successfully integrating these companies into its operations and creating synergies to drive higher margins and greater econo mies of scope. According to CVS’s top management it expects in 2008 to earn around $700 million dollars in cost saving sy offering customers the simplest solutions to health care related problems. It sees growth in a number o f different aspects of business: 1.
Store Development –
CVS’s long term grow market share in the retail pharmacy industry. One w ay to accomplish this is by opening up more stores in top drugstore markets. CV
S plans to continue their strategy of increasing the number of pharmacy store s across th the right shows the current locations of CVS pharmacy stores and provides the reader with a visual representation of CVS’s presen ce in the U.S. Another strategy to increase profitability has been the move to free standing locations for pharmacy stores.
This is designed to improve convenience for custome rs and provides them with more square- footage per store to add new services such as its M inuteClinic and drive thru accommodations. As of October 2008 Management has g otten a sol to continue this strategy throughout 2009 and 2010.
2.
Acquisition Growth –
Since its formation, CVS has grown primarily throug h acquisitions. From its start as a small discount value store to becoming the l attractive businesses and integrate them successful ly into their operations. In the past couple years
CVS has acquired businesses from Albertson’s, Save-
On, JC Penny, Caremark, Long successful in capturing more market share and incre asing customer satisfaction. I expect CVS to contin ue to look for beneficial businesses in which it can improve its
Retail Pharmacy Growth Strategy
:
CVS has managed to successfully grow its company ov er the past few decades both organically and throug h the acquisitions of beneficial companies. It has a proven track record of successfully integrating these companies into its operations and creating synergies to drive higher margins and greater econo mies of scope. According to CVS’s top management it expects in 2008 to earn around $700 million dollars in cost saving sy offering customers the simplest solutions to health care related problems. It sees growth in a number o f different aspects of business: 1.
Store Development –
CVS’s long term grow market share in the retail pharmacy industry. One w ay to accomplish this is by opening up more stores in top drugstore markets. CV
S plans to continue their strategy of increasing the number of pharmacy store s across th the right shows the current locations of CVS pharmacy stores and provides the reader with a visual representation of CVS’s presen ce in the U.S. Another strategy to increase profitability has been the move to free standing locations for pharmacy stores.
This is designed to improve convenience for custome rs and provides them with more square- footage per store to add new services such as its M inuteClinic and drive thru accommodations. As of October 2008 Management has g otten a sol to continue this strategy throughout 2009 and 2010.
2.
Acquisition Growth –
Since its formation, CVS has grown primarily throug h acquisitions. From its start as a small discount value store to becoming the l attractive businesses and integrate them successful ly into their operations. In the past couple years
CVS has acquired businesses from Albertson’s, Save-
On, JC Penny, Caremark, Long successful in capturing more market share and incre asing customer satisfaction. I expect CVS to contin ue to look for beneficial businesses in which it can improve its