The Consumer Value Store, also known as CVS, was established in 1963 in Lowell, Massachusetts. Initially, the company exclusively sold health and beauty items. However, in 1967, they expanded their offerings by opening stores that included pharmacy departments. Throughout the following four decades, CVS acquired numerous smaller pharmacies such as Arbor drugs and Peoples drug, both of which had a significant presence in the Midwest and Southeast regions. CVS also obtained the first-ever mail-order pharmacy, Soma.com, as well as affiliated pharmacies within major supermarkets across the nation, such as Albertson’s stores.
In 2006, CVS had two major achievements. Firstly, the CEO of CVS, Tom Ryan, acquired MinuteClinic, a corporation in Minneapolis. MinuteClinic had a team of board-certified nurse practitioners and physician assistants who were trained to diagnose and treat common family illnesses. They also had the ability to provide prescriptions, if deemed necessary. Secondly, CVS merged with Caremark, a pharmacy benefits management (PBM) company that included specialty pharmacy and disease management programs.
CVS/Caremark, which has become the largest pharmacy chain in the nation as of 2012, currently operates various types of pharmacies. These include 7,352 retail drugstores, 570 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, and four mail order pharmacies as of March 31, 2012.
In addition to its extensive network of pharmacies, CVS/Caremark is also a trusted Pharmacy Benefit Manager (PBM) for major corporations such as AT&T, Seimens, and IBM. It also serves the Federal Employee Program.
The second quarter statistics highlight positive growth for CVS/Caremark. There was an 11.8% increase in net revenues along with a 3% increase in operating profit. Moreover, there was a significant surge in the stock price with a notable increase of 17.3%.
Despite the challenging and unpredictable economy, this company’s growth remains consistent and notable. This SWOT analysis seeks to identify the company’s strengths and opportunities, while acknowledging its weaknesses and potential threats. One significant strength of CVS/Caremark is its marketing position. Currently, 75% of the US population lives within three miles of a CVS/pharmacy. Despite operating in only 26 states, the company ensures convenient accessibility for a significant portion of the population.
