CVS Pharmacy, a publicly owned company is one of the largest pharmaceutical product providers in the United States has been in the market since 2007.
The store was founded as a merger with Caremark in 2007. It is based in Woonsocket, Rhode Island, U.S and has its headquarters in Nashville Tennessee. The main business area of CVS pharmacy includes retail in a wide range of pharmaceutical products. It also deals with pharmacy benefit management
CVS pharmacy participates in different political processes as a way of shaping its public policy and in addressing the legislation which has a direct impact on the company. In the US, there is an increasingly growing focus on health care authorities. This means that the state looks for savings across the board, putting pressure on drug pricing, pharmaceutical services and selection of drugs.
Therefore, the engagement of the store ensures that the interest of the business, clients, employees and shareholders are fairly represented at all government levels. This gives it an opportunity to operate smoothly and efficiently.
Consumer shopping habits have changed over the past years and more specifically in the new economy. Some of the habits have significantly affected purchases of prescriptions and OTC healthcare products. This PESTEL analysis of CVS pharmacy shows that the sales of the company across all income earners is affected since many people purchase drugs at home.
On a positive note, there are also shoppers who are health cautious and purchase drugs only from reputed stores. Therefore, from this analysis, CVS pharmacy needs to find ways of maintaining its client base by ensuring clients visit the store for the drugs.
There is an increasing population of the elderly people. This offers opportunities and threats to CVS pharmacy. Therefore, the pharmacy needs to capitalize on the opportunities to remain productive in a highly competitive industry.
Additionally, there is the issue of obesity amongst the elderly and the youth. This comes with associated health risks. Patients and carers’ are now seeking more information from the store online. Their expectations have changed and are now demanding thus, offering an opportunity for the store to make more sales.
Technology has offered an incredible opportunity for CVS pharmacy to build its brand visibility produce high quality products and enjoy increased profitability. CVS makes heavy investments from time to time on current technology as well as its implementation. With a well-managed online platform, the company is active round the clock.
The company also uses the website to update its clients on new induction and how to safely use its drugs. This is enhanced by a highly professional, active and highly efficient customer care.
Over the past years, there is a growing environmental debate and the major stakeholders are now becoming more aware of the need for pharmacies to be proactive in this field. CVS needs to link its marketing plans with environmental issues.
This will provide an opportunity to incorporate it within its Corporate Social Responsibility, market and development of new products by identifying ecofriendly opportunities. By doing so, the pharmacy will enhance its growth opportunities and increase its sales volumes
CVS pharmacy faces a wide range of US legislative and regulatory restrictions. Additionally, there is a growing culture of litigation in many states. With the evolution of the internet, legislative boundaries are also stretched and patients are now demanding more rights when it comes to their healthcare programs.
Therefore, the pharmacy needs to focus more on the quality of its products and implement the right formulas when exploring foreign markets.
Recommendations based on PESTEL Analysis of CVS Pharmacy
The PESTEL analysis of CVS pharmacy shows that the drugstore has many opportunities to increase its sales and overall growth in its macro environment. Many of the P.E.S.T factors present incredible opportunities for the organization and it should therefore exploit them for its benefit as well as that of its clients. For instance, increasing its investment in technology, the company will improve the quality of its products and service delivery to its clients.