Organizational Internal Strengths and Weaknesses
The CVS Caremark Corporation has internal strengths which it should capitalize on while organizing ways to be more proactive in improving on its weaknesses for increases in pharmaceutical market share in the American markets and future markets abroad. In order to be a successful organization CVS should direct its efforts to position itself for a larger customer base and improve the value for all of its stakeholders. Below is a list of CVS’s organizational internal strengths and weaknesses:
• Market share leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics
• Second largest drug store chain in America ...view middle of the document...
These recommendations will require unanimity among all associates within the CVS Caremark Corporation.
• Enlarge Retail Clinic’s availability by 15% to those locations which are absent of hospital care services
• Pharmaceutical delivery right where the customers live including the home bound
• Enlarge store branding products and pharmaceuticals by 20 % as future industry patents expire
• Provide organic foods and produce to customers with a focus in urban locations
• Look to expand to international markets in Canada and Mexico
• Offer to meet competitors coupons for exact item and offer 10 percent discount on same item sold by competitors
CVS Caremark Corporation’s Cost for Long-Term objectives and Strategy Implementation
( in thousands except for promotion discounts per month)
Costs projected for each year after implementation
Retail Clinic Expansion 15% $20,000
Pharmaceutical Delivery 100 per store
Increase Store Product Branding/Pharmaceutical 5,000
Organic Food Introduction Urban Locations 10,000
International Expansion Canada/Mexico 25,000
Competitor Coupon Match Program 3,000
Strategy Implementation Approach and Expected Results
1.) Capital expenditures will have to be allocated to provide Retail Clinic expansion in the first stage of recommendation implementation to capture the rise in consumer interest. By providing the initial capital CVS will notice revenue increases by another 3.5 percent similar to that in the Retail Pharmacy business segment unit as the previous year.
2.) Project consumer home-bound base within Retail Pharmacies who need delivery options to be provided by CVS locations in the Southeastern region in the first stage of implementation, Northeastern region in the second stage, Northwestern region in the third stage, and finally in the fourth stage provide delivery for home-bound customers in the Southwestern region. With this addition of delivery for home-bound customer service a projected increase of 10 percent in prescription filled orders above previous year ending results.
3.) Continue plan of enlarging product and pharmaceutical branding by 900 products annually for the next five years. There will be a drop in name brand products by 10 percent in sales, but there will be a projected increase in company branding by 15 percent in sales annually for the next 10 years
4.) Increase organic food options for consumers in all urban Retail Pharmacy locations. This will give CVS a competitive edge over Walgreens organic food options by 3.6 percent annually
5.) In the second phase of implementation CVS Caremark Corporation needs to perform market evaluations in Canada and Mexico to expand 5 store locations in each region setting up Retail Pharmacy segments, Retail Clinic segments, and online services at the onset for each location in 2014. The second year after initial investment after implementation CVS will meet breakeven point. The year thereafter will realize growth in those emerging...