Generic strategies
CVS pharmacy is one of the leading corporation in terms of market share in the retail drug industry. The company has managed to put together its capabilities and resources and utilize them to create a core competencies that make the CVS pharmacy to maintain its position as competitive in the drug industry. The core competencies of CVS pharmacy is the unique ability of innovation and production of new products and services that makes its competitors very difficult to mimic, thus enjoying its competitive advantage in the market over its rivals(Ryder, 2010). The CVS has been in the forefront introducing innovative services and products into the market. According to Rekers (2010), CVS pharmacy had 4,300 CVS brand products that ranged from beauty products, general merchandise and vitamins. Further analysis indicated that CVS pharmacy’s outstanding customer service propels the company to be the leading drug store in the United States.
The excellent customer service, eager and capable workforce have been identified with CVS pharmacy and many customers who directly or indirectly consumes products and services of the company have recognized the outstanding customer service offered by the company. Another core competency associated with CVS pharmacy is unique marketing capability which is always driven by innovation(Dinesh, 2011). So far, CVS pharmacy is the only corporation in the retail drug industry that is implementing ExtraCare Loyalty program. This program does not only helps the company to attract new customers but also helps to retain the largest base of the existing customers. Analysis indicated that CVS pharmacy has tailored its marketing mix in order to serve and attract customers from different demographics such as all income groups, gender, racial and age. These generic strategies has made CVS pharmacy to be one of the leading drug store in the United States of America.
Diversification strategy
CVS pharmacy’s capabilities are founded on the impressive knowledge resource deeply rooted in the company. The company has branded itself as the leading innovator in the retail drug industry in the United States due to its advance technology and techniques it utilizes to transfer and exchange of knowledge. Some of the current techniques and technology that CVS pharmacy have implemented include the use of RX connect, which facilitates secure and quick pharmacists communication hence enhancing accuracy on the prescriptions fill(Van, 2014). Other knowledge resources that CVS pharmacy uses include CVS Rapid Refill and automatic prescription refill system. These systems facilitate and allows the customers to place an order for prescription refills 24 hours a day through a touch-tone telephone. Another capability that CVS pharmacy have demonstrated in the retail drug industry is the strong market.
The strong market is derived from the innovative marketing techniques which continuously develop unique and new service and products. The capability of the CVS pharmacy to adjust market mix of product and services to match the preference and needs of wide range of customers drawn from all demographic has helped the company to achieve customer satisfaction. This strong innovative thinking capability witnessed in CVS pharmacy is credited to dedicated, motivated and strong human resources(Calia, 2014). The combination of marketing resources and innovative resources makes CVS pharmacy one of the companies with strong capabilities in the retail drug industry. For example, some of the CVS pharmacy’s strong marketing capabilities include: big discount marts, direct access path that leads directly from the front door to the pharmacy, preferred products categories of baby boomers and innovative and creative store design that changes the shopping experiences for the customers.
Strong financial resource is another aspect that make CVS pharmacy to create strong brands and acquisition of companies that helps CVS to expand its product line. Financial resources also enables the company to acquire patents and reorganize its brands to conform to strategic merger with competing companies(Van, 2014). For instance, CVS pharmacy was able to acquire Accendo insurance and SilverScript insurance, hence becoming eligible to be national provider of drug benefit to beneficiaries meeting the criteria of the Federal government’s Medicare Part D program. Following the merger of CVS and Caremark Company, CVS pharmacy is currently the largest retail drug store in the United States.
Lastly, innovative and creative technology, effective marketing strategies, result-oriented, enthusiastic and energetic human resources enables CVS pharmacy to have proficient operation capabilities. For example, CVS pharmacy implemented Visible Improvement in Profit, Execution and Results (VIPER) system and cutting down the expenses of inventory, which is clear indication of efficient operations(Dinesh, 2011). VIPER system improves monitoring of compensation, treasury, bank reconciliation, sales/audit, merchandising, marketing, operations, pharmacy and store operations hence increasing efficiency of the operations. in addition, VIPER system enhance accountability of the transactions carried out through point-of-sale systems hence reducing the cases of losses associated with fraudulent and processes of deficiencies.
Get Your Custom Paper From Professional Writers. 100% Plagiarism Free, No AI Generated Content and Good Grade Guarantee. We Have Experts In All Subjects.
Place Your Order Now