Cvs Industry Analysis

Industry Analysis

* CVS is in the retail drugstore industry.

* The usual setup of retail drugstores is selling two products. The prescription drugs in the back at the pharmacy and the retail products, like over the counter drugs, beauty products, household items and convince food, in the front. How it usually works is you draw in the customers with prescription drugs and while they are waiting for their prescription to be filled, they browse the retail section

* Competition has been increasing for retail drugstores, many grocery stores have started introducing in store pharmacies that are convenient. And there has been an appearance of internet and mail order pharmacies that are able to provide competitive prices to customers due to low overhead cost. So there has been a real need for CVS to differentiate themselves, which will be addressed later

* Smaller retailers aren’t able to compete with bigger chains in providing convenient hours and in store clinics so many of them fail

* There are about five pharmacies that hold 2/3 of the US shares of prescription revenue.

* The highest bing CVS, followed by walgreens, express scripts, Walmart, and rite aid

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Transition: so let’s talk about some of CVS’s competitors

Walgreens

* lets talk about soem hours and in store clinics so many of them fail

customers due to low overhad costtsms and cois CVS’s closest competitor, while CVS has the highest revenue, Walgreens has the largest retail pharmacy in the industry. They currently have 8,300 store in all 50 states, in comparison with CVS’s 7800 stores in only 45 of the states.

* Walgreens is praised for their convenience with 75% of the us population lives within five miles of a Walgreens store

* Walgreens has a very strong brand recognition.

* Meger with alliance boots, a british pharmacy, expanding and creating a chain spanning

* Their Balance Rewards Loyalty Program has been successful for them, recently they...