Preview

The Cvs Web Strategy: an Evaluation of the Challenges and Advantages of Integrating an Online Pharmacy

Best Essays
Open Document
Open Document
2489 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Cvs Web Strategy: an Evaluation of the Challenges and Advantages of Integrating an Online Pharmacy
THE CVS WEB STRATEGY: INTEGRATION OF AN ONLINE PHARMACY

THE CVS WEB STRATEGY: AN EVALUATION OF THE CHALLENGES AND
ADVANTAGES OF INTEGRATING AN ONLINE PHARMACY

By
Leah Bouk
Wingate University

1

THE CVS WEB STRATEGY

ABSTRACT
This paper discusses the considerations surrounding CVS Pharmacy’s initiative to become a part of the virtual drugstore industry. Specifically, the organizational structure, fundamental design of the autonomous innovation, and strategic positioning of CVS.com were considered in evaluating the drug store’s ability to react to the disruptive technology. This paper serves to evaluate the effective initiatives, problems, and possible solutions to the considerations outlined above. As a result of this analysis, one can deduce that acquiring the web company
Soma.com, instead of creating its own online component, was a successful strategy for the autonomous innovation. Shortfalls include not executing a strategy to circumvent the MerckMedco mail order dilemma. Ultimately, a recommendation is that CVS.com differentiate itself by personalizing customer home pages and by fostering relationships with prescribing healthcare providers. 2

THE CVS WEB STRATEGY

TABLE OF CONTENTS

Abstract…………………………………………………………………………….2
Introduction………………………………………………………………………..4
Landscape…………………………………………………………………………5
Organizational Structure…………………………………………….…………….6
Autonomous Innovation…………………………………………………………...8
Strategic Positioning……………………………………………………………….9
Summary…………………………………………………………………………..10
References…………………………………………………………………………11

3

THE CVS WEB STRATEGY

THE CVS WEB STRATEGY: AN EVALUATION OF THE INTEGRATION OF AN
ONLINE PHARMACY

INTRODUCTION
Strict regulation throughout the healthcare and pharmaceutical industries arguably slows the advancement in technological innovation, especially when compared to the computer and automobile industries. Therefore, innovation in a multiproduct, integrated and hierarchical


References: Web Strategy, 2001, p.11). (CVS: The Web Strategy, 2001, p. 6). After thorough examination of both options, CVS decided to acquire the start-up company, since it would be quick to implement (only 3 to 4 months), it (Teece, 2009, p.59). in rapidly and cost-effectively strengthening a brand” (Gallaugher, 2008, p.6). for new technology to yield value to the consumer, they can play an important role in the competitive advantage equation” (Teece, 2009, p25)
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Gold Coast Training College Executive Summary
    • 3829 Words
    • 16 Pages

    Gold Coast Training College Executive Summary

    this analysis is based on the existing website draft, hence it is addressed as an existing website…

    • 3829 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Cvs Caremark Strategic Analysis
    • 3178 Words
    • 13 Pages

    Cvs Caremark Strategic Analysis

    CVS Pharmacy is the retail division of CVS Caremark. It is also one of the largest Pharmacy Retail Chains in the country and operates more than 7,400 stores domestically. Although the retail pharmaceutical division of this corporation accounts for a significant amount of this company’s success, CVS Caremark focuses more on its corporate strategy to compete with other industry rivals such as Walgreens and Rite Aid. Considering CVS Caremark is the result of the 2007 merger of CVS and Caremark Rx, this analysis will begin with a brief history and the merger of these corporations, its current performance, strategic posture, and the strategic managers of this organization.…

    • 3178 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    case study three
    • 409 Words
    • 2 Pages

    case study three

    2. What methods might Terra Lycos use to measure the effectiveness of the various Web sites of its affiliates and subsidiaries?…

    • 409 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Walgreens Co. Swot Analysis
    • 2437 Words
    • 10 Pages

    Walgreens Co. Swot Analysis

    This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. The company’s decision to severe its relationship with Express Scripts, Inc. has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.…

    • 2437 Words
    • 10 Pages
    Best Essays
    Read More
  • Better Essays

    Str 581 Innovation Strategy Paper
    • 1104 Words
    • 5 Pages

    Str 581 Innovation Strategy Paper

    Another factor that the companies have to analyze is the objective customer. Changes in this item arise when potential clients are identified, which currently is not being prioritized as to marketing, sales and distribution. Of all the elements it is the least used, but however it can present excellent opportunities for growth. Also, the corporation may use the new technologies. These new technologies are the result of research and development scientists and engineers, and represent a fundamental part of innovation (Gitman & McDaniel, 2007). Thus, “Duracell Powermat” will fulfill this concept to Starbucks, because it will service its regular client and will be an attraction to those who do…

    • 1104 Words
    • 5 Pages
    Better Essays
    Read More
  • Best Essays

    Cigna V Aetna
    • 3050 Words
    • 13 Pages

    Cigna V Aetna

    The purpose of this paper is to provide a comparative analysis of two companies within the same industry (Cigna vs. Aetna) and an evaluation of their innovation processes.…

    • 3050 Words
    • 13 Pages
    Best Essays
    Read More
  • Good Essays

    Cvs Pharmacy Merger Case Study
    • 448 Words
    • 2 Pages

    Cvs Pharmacy Merger Case Study

    CVS is a corporation. A corporation is one of the most known business structures. Corporations can merge or acquire other businesses as an attempt to raise capital by reaching different markets and expanding the company. On Dec. 16, 2015 CVS declared its acquisition of targets pharmacy for around one point nine billion dollars. This deal was made so a CVS pharmacy would take place of every target pharmacy. This is an excellent example of how the corporations use acquiring other companies to broaden the corporation. This deal had a vast impact on CVS. Conforming to Mr. Trevors article, “CVS Earnings: Strong Performance Driven by Acquisitions and Growth In Specialty Business”, Mr.Trevor states “The acquisition of Target’s more than 1,600 pharmacy departments and 80 medical clinics makes CVS’ network of pharmacies the largest among its competitors. (Trevor, 2016, para. 5)” CVS taking targets 1,600 pharmacy departments and 80 medical clinics differentiates this company from its competitors because it is the largest pharmacy company. In addition with merging and acquisitions corporations is known for its effective advantages which including the selling of shares, its limit in liability and marketing power.…

    • 448 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    walgreens
    • 733 Words
    • 3 Pages

    walgreens

    This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the company as the industry leader with its wide portfolio of products and services, as well as establishing the benchmark for growth through acquisitions. The company’s weaknesses include prescription errors resulting in death and being unable to keep pace with a price competitive structure against large discounters. Walgreens is positioned to capitalize on the growing e-prescription demand and benefit from the recent health care reform policies. Has negatively impacted customer count resulting in a top line revenue decrease. Finally, this paper will conclude with my decision as a mutual fund manager to invest in Walgreens.…

    • 733 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Task 2 New Formart 3 9 2015
    • 1578 Words
    • 2 Pages

    Task 2 New Formart 3 9 2015

    c) Its application to the given scenario: The website provides research finding on how a…

    • 1578 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Cvs Case Study
    • 5056 Words
    • 21 Pages

    Cvs Case Study

    Established in 1963, Consumer Value Store (CVS) was founded by brothers Stanley and Sidney Goldstein and business partner Ralph Hoagland in Lowell, Massachusetts. CVS began the operation of its first stores with pharmacy departments in 1967, opening locations in Warwick and Cumberland, Rhode Island. In 1984, CVS/pharmacy became the 15th largest pharmacy chain in the U.S. with 408 stores and $414 million in sales. With growing success CVS decided to acquire a web based startup company, Soma.com, the first major online pharmacy, for $30 million in stock. The web site, soon rebranded CVS.com, enabled customers to order prescriptions and general merchandise for either in-store pickup or mail delivery.…

    • 5056 Words
    • 21 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    M1 Unit 4 Business Communication
    • 1554 Words
    • 7 Pages

    M1 Unit 4 Business Communication

    The World Wide Web shortened as WWW and commonly known as the Web is a web browser that can view web pages that may contain text, images, videos, and other multimedia. In Tesco PLC web based information is mainly used by the ICT department for example the Tesco’s IT department designed the club card which is a customer loyalty scheme which contain customer databases that help you collect and analyze customer data, Tesco also use Tesco.com as a platform for a way to satisfy each customer’s requirements and promote a two way flow of communication that can only strengthen customer relationships. The Purpose of web based communication is to ensure customers can communicate with the business all the times this is done by designing a websites; this gives businesses an interface to stay in touch with their customers. Tesco.com enables customers to read about the available services or the products on the websites, and they can also check the prices as well. Similarly, they can place their orders online as well as make purchases. This has opened a whole new shopping experience for customers as they can shop in the comfort of the own home.…

    • 1554 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Informative Speech Outline. Three Rules for Web Startups
    • 532 Words
    • 3 Pages

    Informative Speech Outline. Three Rules for Web Startups

    Now, that we have explored the situation on the modern web, let’s examine the main rules of web business.…

    • 532 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Effects of Self Checkout Lines
    • 2568 Words
    • 11 Pages

    The Effects of Self Checkout Lines

    Consumers have a great impact on what is available in a variety of markets. As consumer demand shifts to new products, the market will adjust to provide those new products and services that the consumer has decided to be of some importance. From black and white televisions to LCD televisions, from cameras requiring film and then bringing it to the store to develop prints, to digital cameras that provide us with the ability of uploading images with the simple click of a button. Businesses who participate within the constantly changing market are all striving to meet one goal, increasing profit margins. Meeting this goal can be a challenging process, especially because the demand and needs of consumers are constantly changing. Recently the market has been adjusting rapidly to meet one of the increasing needs of consumers, a need that has become more and more important in the last few decades, convenience.…

    • 2568 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Honeywell Building Controls Division
    • 2167 Words
    • 9 Pages

    Honeywell Building Controls Division

    Cooper. R. G., & Kleinschmidt. E. J. 1987. New products: What separates winners from losers? Journal of Product Innovation Management. 4: 169-184.…

    • 2167 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Globalization of Wyeth
    • 2583 Words
    • 11 Pages

    The Globalization of Wyeth

    From 1997 to 2004, Wyeth went from being a multinational company to becoming a globalized company. The biggest shift? Their Information Technology department. They went from 22 people spread over the world to more than 1,800 people and half a billion dollars of the Wyeth budget. For many years Wyeth was a Laissez-Faire holding company with many locations throughout the world that did not interact or communication with each other. Over the next 8 years, with the help of the Information Technology department, Wyeth became a globalized pharmaceutical company with centralized information that created new efficiency in an increasingly competitive market. The end result was a positive one but it was not an easy road to get there. Wyeth had great pre-planning for the Information Technology shift, but the original strategic design needed to be revamped when the implementation started. Employee resistance was a result of the fear of the unknown as well as confusion with the processes. Also, budgetary concerns played a role in the rate at which the Information Technology division could grow.…

    • 2583 Words
    • 11 Pages
    Good Essays
    Read More

Related Topics