Running Head: CVS SWOT Analysis

Category: Marketing
Date added
2021/11/20
Pages:  3
Words:  800
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How it works

Weaknesses:

  •  Weak existence outside of the U.S.
  •  Lawsuits over illegal refill practices

Strengths:

  •  Largest retail pharmaceutical companies
  •  Strong brand presence
  •  Caremark pharmacy services – good
  •  Consistent in building shareholders value
  •  Consistent performance
  •  The broad range of health and wellness
  •  Strong accessibility
  •  Brand building to end tobacco sales

Threats:

  •  Amazon expanding into the pharmacy market
  •  Government regulation and interventions
  •  Mail-order pharmacy
  •  Spread of prescription drug abuse

Opportunities:

  •  Expand in the international market
  •  Growth with collaborations
  •  Growth w anti-aging drugs
  •  The aging population w increased drug needs
  •  Fighting Opiate crisis
  •  Private label market

CVS SWOT Analysis

CVS has recently rebranded from CVS Caremark to CVS Health Corporation, to emphasis their mission statement of helping customers better their health thorough innovative and high-quality safe services (CVS Caremark). CVS has been in the top 500 listings for multiple years and has continued to be one of the leading companies in its industry. CVS’s many strengths are what has made this firm thrive in the market place. They are able to compete and protect market shares all while exploring new markets and innovations. With their strong brand presence of accessibility, convenience, and consistent performance; CVS has numerous strengths that have made them successful. Though they do have factors that they could improve on, like any company in our market place. CVS is not commonly known outside of the United States, which does not grant the company much brand recognition. Their retail proposition has a lack of interest, and only makes sales from convenience, which is not a bad thing, but is hard to generate growth (Fern Fort University).

This brings us to CVS’s opportunity for development. CVS has an opportunity to expand into a more international market and with new technologies that will develop into a new market (Forbes). This allows new and old customers a great service through an online channel. CVS is also opening new lines of health and beauty, including an anti-aging, that is a great opportunity for growth in their brand image, along with their private label brands. CVS is also having threats to its company, that impact its growth sector in competition. Amazon has expanded into the pharmacy market which has been a big threat for pharmacy companies. With our developments in technology the use of mail order pharmacy has been a threat, and that is why it is important for CVS to take the opportunity to advance into new technologies.

Retail Advices

CVS is ideal for health solutions, but it is not a known destination of retail. CVS is an innovative and forward-thinking company but has not developed into a strong retail market. CVS is more of a store of convenience, though it does supply a lot of name brand items there should be no reason it should and could do better in this market (CVS Caremark). There are many CVS stores within reach, which is a loss of opportunity, knowing that they hold many categories like beauty, that is an allied proposition for this company. CVS is need of developing a stronger retail proposition by building on its product displays, customer service, and store layout. The sales of retail are mainly from the acts of convenience, so with more attention to products and better effort this could transform CVS’s retail prospects.

Expanding Health Services

CVS has been a top contender in pharmaceutical practices for many years, with its strong brand presence and broad range of health and beauty products it is no surprise to expand into other healthcare needs. If CVS were to expand into a vision and hearing spot for people’s healthcare needs, it would drive sales and services for this company. This proposal will give its customers a convenient place to address all their healthcare needs in one setting (CSA Staff).

Digital Experience

CVS is late to expand into a more technological and digital experience in the market place. Digital innovation is important in today’s society, with everything we do being enhanced by our devices. Digital shopping is something that has evolved tremendously, and it is important to take that into account with a retail business. CVS could invest in newer technology that will lead to greater services as well as luring new customers that are with these new advances (Fern Fort University). This would also make filling prescriptions and scheduling appointments more accessible and convenient.

References

  1. CVS Caremark. (n.d.). Retrieved from http://www.makingafortune.biz/list-of-companies-c/cvs-caremark.htm
  2. CSA Staff. (2015). 7 Ways CVS Is Driving Growth in Its Stores. Retrieved from https://www.chainstoreage.com/news/ways-cvs-driving-growth-its-stores/
  3. Forbes.com. (2015). CVS Health Strongly Placed to Tap Growth Opportunities. Retrieved from https://www.forbes.com/sites/greatspeculations/2015/02/05/cvs-health-strongly-placed-to-tap-growth-opportunities/#40e9381b5bc4
  4. Fern Fort University. (2015). CVS Health SWOT Analysis Matrix [step by step] Weighted SWOT. Retrieved from http://fernfortuniversity.com/term-papers/swot/1433/7-cvs-health.php
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Running Head: CVS SWOT Analysis. (2021, Nov 20). Retrieved from https://papersowl.com/examples/running-head-cvs-swot-analysis/

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