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Jaclyn Hurley
7/10/2017
CVS PHARMACY: A SWOT ANALYSIS 2
No organization ever starts without a vision to succeed; the desire to thrive irrespective of
the industry remains a principal objective regardless of a company’s size or market niche. In the
world today, many organizations keep on emerging in different industries as others exit the same.
The strategies they use, the products they offer, market relationships, and the ability to adjust
have been key determinants of their success or failure. Indeed, this is a case that applies to all.
Regardless of the market that an organization explores, it is imperative for it to understand its
strengths, weaknesses, opportunities, and threats. This analysis covers the four different concepts
The importance of carrying out a SWOT analysis emanates from the fact that it is vital
for every organization to understand its position; it gets to know where it is doing well, where it
needs to improve, and what to avoid (Helms & Nixon, 2010). Similarly, it offers a detailed
picture which can be applicable for projection purposes. As such, a company can predict its
prospects based on current performance. A SWOT analysis also serves as a risk analysis element.
If a company is well aware of the present and possible threats, it is possible to devise mitigation
strategies. Indeed, it is the most reliable presentation of an organization’s performance areas and
In reflection, CVS Pharmacy invests in a very critical area of today’s business. Dealing
with people’s health is never easy; there are many risks involved, regulations that lead to
numerous frustrations in the industry, ethical issues, and professional restrictions also make it
hard for many businesses to thrive especially sole proprietorships (Kotler, Shalowitz, & Stevens,
2011). Despite CVS Pharmacy being a top performer compared to its main competitors, the
market situation for any business has never been static. Issues keep on emerging hence the need
to understand its position as in the case of other companies. As a result, CVS Pharmacy can use
CVS PHARMACY: A SWOT ANALYSIS 3
such an analysis to know where its strengths are, current weaknesses, present and possible
opportunities and threats too. Indeed, it is a way to knowing how to remain competitive and
SWOT Analysis
Strengths Weaknesses
Ability to adapt
Opportunities Threats
This presentation is an accurate scenario of CVS Pharmacy’s position about the critical
areas that influence business performance in the pharmacy industry. The most crucial thing to
note is that most of these issues happen simultaneously often leading to difficulties and
numerous complications in the industry. Considering the prevalence of these issues, it is evident
that the current performance in CVS Pharmacy is commendable considering that it has been able
As far as the strengths are concerned, one thing that is apparent in CVS Pharmacy is a
strong market performance. Although it has been in the industry for long, CVS has been able to
CVS PHARMACY: A SWOT ANALYSIS 4
capitalize on this advantage and keeps on growing, adapting to changes, and revolutionizing as
time advances as well as rebranding (Dan, 2014; Nathan, 2016). However, its main strength has
been in the product mix. Different from the case of its many competitors that specialize in drugs
and pharmacy services, CVS offers an assortment that even includes photo finishing services,
beauty products and cosmetics, convenience foods as well as greeting cards. Indeed, it is a
business aspect that goes beyond offering pharmaceutical products and services to providing the
Due to this strong market performance, CVS continues to excel despite many competitors
rising. In fact, its main competitor, Walgreens Boots Alliance ranks 37th and CVS is 7th among
the leading corporations. Another advantage which adds to its strength as well is market’s
consistency. Indeed, it is an attribute that many companies should learn from CVS. Despite the
pressures of time, unexpected changes and unfavorable policies, CVS has been embracing
quality in its products and services. As a result, it has been able to build trust among its clients
However, despite having such a strong market presence and ability to outdo its major
competitors, CVS has weaknesses which can affect its business prospects in the future. The most
obvious case includes controversies. Despite its capacity to overcome them, the company has in
the past been a victim of privacy cases, bribery accusations, prescription errors, and tax lawsuit
(Jesse, 2016). Such occurrences affect the business reputation and hamper customers’
confidence. In a nutshell, it has not been able to keep standards as the market requires. Other
issues include focusing too much on retail which can hinder expansion as well as growth slows.
In fact, having served the market for 54 years, the company should be operating worldwide
Every market presents several opportunities, and it is the same with the pharmaceutical
industry. One of the leading opportunities that CVS can take advantage of is technological
openings. Considering that consumers are increasingly making use of Apps to get information as
well as developing an increased urge for consumer health education, CVS should invest in health
literacy as a new service. In this regard, it should develop and make use of technological
applications which address its clients’ queries when in need. Another opportunity is the case of
emerging markets; they surface from increasing populations and changing market dynamics
(Kotler, Shalowitz, & Stevens, 2011). The case of the scenario above of consumer education is a
perfect example.
One that is apparent is growing competition. As time advances, different companies keep on
investing in this industry while integrating new technologies. A perfect example includes the
Indian businesses that also have vast experience in the health sector. They include Sun Pharma,
Lupin, and Glenmark and no one should overlook their entry. Besides, competition, it is also
imperative to consider policy reforms and slowing growth in the emerging markets. The
economic growth is low in these markets and makes international entry, investment, and growth
a challenge.
Another significant threat to take into account in the pharmaceutical industry includes the
issue of ethics. The main reason for considering it as a threat emanates from the fact that there
are so many and high expectations for a pharmacist. In connection, a small error can lead to a
significant business collapse. Additionally, ethical standards in healthcare help in making right
decisions and informed consent. For instance, during inquiry and treatment procedures, doctors
and pharmacists often come across a lot of patient's information which even a patient may fail to
CVS PHARMACY: A SWOT ANALYSIS 6
understand. In such a case, informed consent ensures that physicians only give the ill the
necessary information and in the way that he or she understands (British Medical Association,
2012).
Regulation by medical ethics also ensures patients receive the best recovery procedures
and assess those who cannot make self-decisions about their care mostly the underage. It also
prevents the sale of drugs to the minors especially the teenagers and students. The complication,
in this case, is that ethical requirements are never static. With many regulations emerging often,
the possibility of being involved in an unethical issue is very high, and the consequences are far-
reaching. In other words, ethical traps prove to be a significant risk any day. Also, considering
the impact of their consequences such as in the case of a scandal, no business would like to
imagine them hence the need to be extremely careful when making health decisions with ethical
connections.
From the SWOT analysis, the different aspects that can influence CVS Pharmacy’s
business situation are evident. However, and as it applies to other scenarios, their impact is never
the same. For instance, the contribution of technology and product mix is very different from the
exploitation of emerging markets or embracing ethics. Regarding that, the essential thing to
factor is to ensure that there is a balance at all times. CVS should make creative use of every
emerging opportunity, capitalize on its strengths, be careful of threats, and devise measures to
mitigate its weaknesses. As a result, it will have a stable market situation where its business can
Prioritized List
CVS PHARMACY: A SWOT ANALYSIS 7
Just like it applies to the other industries, there are some factors that a company
prioritizes when making critical decisions. Apparently, the pharmaceutical industry is a highly
profitable one, but there are dangers ahead; many regulations are emerging, global spending on
medicine highly changing, and methods of doing business changing at a very high rate (DiMasi,
Grabowski, & Hansen, 2016). As a result, it is imperative for any company to be highly dynamic
and responsive to all scenarios. Creativity and accurate decision making must be precedence as
well. Above all, it must choose what to prioritize regarding its strengths and exploit as well as
understand its weakness and come up with creative and practical ways to mitigate them.
In response to that, a major strength for CVS Pharmacy is efficient product mix. In
reflection, an organization that offers varieties of products while embracing quality stands to
compete for long; it builds trust, and its customers can start new links. Apparently, this has been
the major strength for CVS. During its 54 years of service, the company keeps on offering a
variety of services and products as time changes. Its customers do not need to stick on a single
product line or trade with the company for a single product or service. Also, due to its
consistency, it has been able to attract and retain a large customer base which no doubt will play
In a way to exploit that necessary strength, there are several interventions that CVS
Pharmacy should apply. The first is to widen its assortment margin; it should continue giving
more variety to the existing product lines. Secondly, CVS should keep on studying the different
needs of its customers. Instead of imagining what they may require, it is worth to make periodic
assessments and come up with products or services that meet the noted demands. Thirdly and
most importantly, it should keep on studying future business prospects. It is likely that what is
working today will be irrelevant tomorrow. Making advance plans will ensure that it does not
CVS PHARMACY: A SWOT ANALYSIS 8
plan or establish services that will become redundant within a short time. As such, value for
Another significant strength that CVS should exploit is its strong market presence.
Considering that its main competitor ranks 30 positions below it is a great advantage, and it
should benefit from it. Strong market presence ensures doing business with ease; customers have
a high trust level with dominant businesses especially the ones with positive reviews (Wild,
Wild, & Han, 2014). However, in a way to preserve and exploit that opportunity, CVS should
consider several things. Firstly, it should keep on embracing quality as it brings new products to
the market. Secondly, it must utilize the various promotional methods for successful business to
maintain its current client base while attracting others. Thirdly, it needs to use its positive
reputation and strong business image to expand markets. In this regard, instead of targeting
nationwide control, CVS should establish a strong global presence particularly by making
On the other hand, the most significant weakness to mitigate is recurrent controversies.
Like earlier mentioned, CVS Pharmacy has been a victim of several major controversies that
include deceptive business practices, tax lawsuits, patient’s information disclosure, and
prescription errors among others. It is vital to note that repeated cases of controversial business
cases affect customers’ trust; it depicts ignorance and can make them avoid the company too
(Jesse, 2016). In a way to avoid the possibilities of such scenarios, CVS should ensure
everything is up to the standard required. Above all, embrace ethical business as well as enhance
Readiness Evaluation
CVS PHARMACY: A SWOT ANALYSIS 9
From the evaluation of the internal factors and analysis of the market domain, it is
justified to deduce that CVS Pharmacy is ready to compete in the ever-changing and critical
business situation in the pharmaceutical industry. As the analysis show, the healthcare industry is
an area that deals with critical issues each day and requires extensive understanding of the
market, dynamism, adaptability, and creativity before venturing into it. Ethical business is also
an elemental consideration and affects business success in great details. Evidently, different
companies seek entry into this market, but it is not all that survive; some exist after a short period
successful business today and in the future. The first factor involves the company’s advantage of
a strong market presence. Although it is not monopolistic, the ability of the company to compete
for long and diversifying its product and service lines is sufficient to affirm that it stands a better
chance to excel. Secondly, its ability to adapt or respond sufficiently to emerging challenges in
the market is another case that justifies readiness to compete. Above all, the company is an
extensive coverage while offering an assortment of products and services is another indication
that it understands what the market needs. In like manner, it shows readiness to compete.
In summation, although current success does not imply being the same in the future, the
SWOT analysis of CVS Pharmacy shows a business ready to compete. Despite the various
weaknesses, which are a typical case of many organizations, the company has a higher chance of
remaining competitive for long. Indeed, it has much strength that many companies lack. The
only thing that is required is to exploit them effectively to become competitive globally as well.
CVS PHARMACY: A SWOT ANALYSIS 10
References
1.) British Medical Association. (2012). Medical Ethics Today: The BMA's Handbook of
2.) Dan, G. (2014). CVS Health and Target Sign Agreement for CVS Health to Acquire,
Rebrand and Operate Target’s Pharmacies and Clinics (Press release). CVS Health.
3.) DiMasi, J. A., Grabowski, H. G., & Hansen, R. W. (2016). Innovation in the
pharmaceutical industry: new estimates of R&D costs. Journal of health economics, 47,
20-33.
4.) Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A
review of academic research from the last decade. Journal of strategy and
Education.
6.) Jesse, V. (2016). Pharmacy Fraud, Waste, and Abuse. U.S. Pharmacist. Jobson
Publication.
7.) Kotler, P., Shalowitz, J., & Stevens, R. J. (2011). Strategic marketing for health care
8.) Nathan, B. (2016). CVS launch the rebranding of Target Pharmacy. N.p.: USA Today.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education
Limited.