Exploring the External Environment

CVS has always been in the business of growing its brand and keeping loyal customers. Almost every CVS is located in very close proximity of a Walgreens or a Rite Aid drug store. This strategy is used to drive competition and gain customers that may grow unhappy with Walgreens. I have heard numerous times while shopping in Walgreens or CVS, "maybe I'll go across the street and see if I can get better service". This is what CVS hopes for when customers fail to get the service they want from competitors such as Walgreens. In the past, Rite Aid was a major competitor but has fallen behind Walgreens and CVS in the competition the be the number 1 pharmacy retail chain.