CVS Pharmacy is a healthcare provider in the United States. The corporation values its customers and endeavors to maintain this by managing its pharmaceutical costs and improvement of healthcare services. Its main business segments are Pharmacy Services and Retail Services. CVS is publicly owned and was founded following a merger between CVS Pharmacy and Caremark in 2007. While the company is based in Woonsocket, Rhode Island, the company’s services are headquartered in Nashville, Tennessee. It specializes retailing pharmaceutical products, and management of pharmacy benefits. This SWOT analysis of CVS Pharmacy will give you a deeper understanding of the company’s internal environment together with the opportunities and risks ahead.
CVS Pharmacy is a major pharmaceutical retailer in the United States. What are its areas of strengths? Firstly, the company has a strong presence in America, with over 7,000 drug stores. This presence helps in strengthening the company’s brand image. In 2010, CVS Pharmacy was ranked position 18 on the Fortune list of 500 Companies.
In addition, CVS has a strong network. It employs over 200,000 people in 41 States. By 2010, CVS had 7152 stores offering its specialized products and services. Since its inception, CVS has grown to have 569 MinuteClinic locations to meet the needs of its customers around the country.
The company also has strong annual revenue of over $99 billion and an operating income of $6.438 billion. Coupled with a net income of about $4 billion, CVS Pharmacy has a strong financial base to propel it to greater heights as it maintains its lead in the world of pharmaceuticals.
Besides the above strengths, this SWOT analysis of CVS Pharmacy shows that the company has a number of weaknesses, likely to undermine its business operations. For example, CVS faces stern regulations from the US government. The company has no option but to keep adjusting its policies in order to comply with these ever-changing laws.
Moreover, CVS does not record regular revenues. It has inconsistent turnover results. This makes it hard for the company to do proper planning. Another weakness, which is affecting the firm, is irregular store experiences. This is to say its stores in more than 40 American states do not have uniformity in serving its customers.
Another great concern at CVS Pharmacy is its security lapses. It is evident that the company lacks a solid security system to enhance scanning and prevention of attacks. Over the years, CVS has witnessed a number of armed attacks, putting the lives of employees and customers on the line.
In this SWOT analysis of CVS Pharmacy, it is evident that the company has a wide range of opportunities to explore and stamp its position as a leading pharmaceutical retailer in the US. What are some of these opportunities? Firstly, the company should focus on investing in its newly acquired stores. These stores include Eckerd, Osco, Savon, and Longs. By so doing, CVS will strengthen its network and presence. As a result, it will experience a rise in its market share and good profits.
The second opportunity is the potential to acquire more stores. The company has room to buy firms within its line of operation to maintain its niche in the market. For example, it can acquire Universal American Corp.’s Medicare Part D. This would put it ahead of other players in the industry.
There is a range of challenges, which continue to threaten the success of CVS as a leading pharmaceutical retailer in America. Like in any other industry, stiff competition is a major point of concern. Among these competitors are Walgreen and Pfizer. The amount of pressure they exert on CVS is too strong that the company must remain on toss with its strategy.
Another weakness is the shortage of pharmacist in the industry. To address this predicament, CVS has embarked on producing own to keep pace with the needs of the industry. Lastly, the unstable growth of the firm is a real threat to the future of the company.
This SWOT analysis of CVS Pharmacy has detailed the company’s internal environment and analyzed it potential opportunities and threats.