Cvs Caremark Strategic Analysis

3167 words 13 pages
CVS Caremark: A Case Analysis
Current Situation
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.
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In spite of the increase in generic equivalents, CVS is showing no signs of financial distress as the revenue from drugstores opened for at least a year grew four percent while the number of prescriptions filled for the year rose nine percent. Not only is the retail pharmacy experiencing growth, but the company’s prescription benefit management services also gained large clients like Lowe’s over the last year. CVS Caremark also continues to perform well in the stock market, beating out Wall Street’s estimate of its earnings for its 2012 fiscal year. This type of success has only fueled CVS Caremark’s expansion. This corporation continues to open more stores domestically, despite the 7,458 drugstores it currently operates, and has recently begun to establish its international business with the recent purchase of a 44-store Brazilian pharmacy chain (Murphy, 2013). CVS Caremark ranks among the top corporations in the nation, ranking 18th on the Fortune 500 for 2012. To truly grasp the domination of this organization, its ranking can be compared to its major competitors Walgreens and Rite Aid, which both appeared on the list ranking at 32nd and 113th respectively. The current performance and success of this company is the direct result of effective formulation and implementation of its strategy. This corporation


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