Identifying new markets and opportunities with range of products and services that are offered has helped the company grow. Online and 24-hour operations have also encouraged and drawn more customers. The cost and barriers to entry for the company are relatively lower when compared to other smaller chains. Being a large organization, CVS has better bargaining and negotiating power with its suppliers. Buying to satisfy economies to scale can help the company better manage its inventory. Better distribution and warehousing techniques can help increase the inventory turnover in the stores. Having a recognizable brand name can help the company manage the hurdles of entering new markets more effectively. Offering customers CVS cards and special offer discounts on the card has helped bring back many customers. Regular shoppers can also avail special discounts through use of this CVS card. CVS is also introducing electronic transaction terminals that can transmit consumer account information over radio waves. (bizjournals.com, 2005) Threats: Walgreen's is the leading pharmacy chain in the U.S. In addition, other pharmacy chains...
And Rite Aid Corp are also aggressive competitors for the company in almost all the markets that it operates in. With a growing trend of HMO having self-managed pharmacy plans and major hospitals supporting their own in-house pharmacies the scope of the pharmaceutical wing of CVS might be impacted. The increase of stores like Wal-Mart, K-mart and Target that carry similar products has also posed a challenge.
McKesson Corporation (Mckesson) is an American pharmaceutical distributor with operations mainly in the U.S. The firm has been in operation since 1833, and boasts extensive market share, robust financial strength, and strong market power. The firm has built strong relationships with its key stakeholders, which adds to its strengths. Nonetheless, limited diversification and market focus as well as the threats of competition, unfavourable regulatory changes, and counterfeits present significant concerns
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