Creating Business Strategies

CVS has developed a unique strategy to try gain an upper hand on the competition. Most largely successful drug stores sell a number of unhealthy products, including cigarettes. CVS makes around 2 billion dollars a year with the sale of cigarettes, but hopes to make up the difference by attracting customers that are more conscious to the dangers of tobacco products. There are millions of people trying to quit smoking and CVS will be a great place to shop knowing they won't have their favorite pack of cigarettes staring them in the face when they go to the check-out counter.


http://www.businessweek.com/articles/2014-02-05/the-strategy-behind-cvss-no-smoking-campaign

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.

Examining the Internal Environment

CVS prides itself of offering better products at cheaper prices than the competition. Like other companies, CVS has its own brand of products which allows for a larger profit margin. Just the Basics, Essence of Beauty, Earth Essentials, and Total Home are some of the brands produced and sold only by CVS. These products offer a less expensive alternative to national brands and allows CVS to keep 100% of the profit from sales.

The CVS Minute Clinic offers on-the-spot treatment for customers who may not be able to make it to their primary physicians right away. The Minute Clinic is the largest retail medical clinic in the United States and continues to grow. It has more than 800 clinics in 28 states and is open 7 days a week for greater convenience.


http://info.cvscaremark.com/newsroom/featured-topics/cvs-brands

Mission and Vision

The CVS mission is to help people on their path to better health by reinventing pharmacy and providing excellent customer service. Their values are Innovation, Collaboration, Caring, Integrity, and Accountability. Earlier this year CVS took a big step towards helping people live healthier and longer lives by deciding to stop the sale of tobacco products. This change will go into effect October 1, 2014 and will lose the company millions in revenue. This sounds bad for business but it shows how dedicated the company is to sticking to its mission and core values.

Strategic Management

Strategic Management is the collection of activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization.




CVS Pharmacy is the second largest retail pharmacy in the U.S. behind Walgreens. It focuses on providing great customer service and tuning in to what customers actually need from their shopping experience. CVS has a customer loyalty program that tailors the overall experience to what a shopper has purchased in the past by issuing select coupons and offers to each individual. They also have an express coupon center that allows shoppers to get deals on item once a week for being a loyalty card holder. This strategy ensures that customers will feel they have a place to shop where their needs are thought about beforehand and to make for an overall better shopping experience.