CVS Caremark SWOT Analysis

CVS Caremark Corporation, listed in NYSE as CVS, is a healthcare provider in the U.S. that provides pharmacy services and values its customers by managing the pharmaceutical costs and improves healthcare through its pharmacy benefit management, mail order and specialty pharmacy division. The Company operates in two business segments: Pharmacy Services and Retail Pharmacy.


• Ranked as 18 in the Fortune 500 list (2010).

• Renowned for having a broad variety of products in pharmacy and one of the leading drugstore chains.

• It employs about 200,000 people in about 41 states.

• It has about 7152 stores that operate on its retail side (2010).

• It has 569 MinuteClinic locations.

• 44 retail specialty stores.

• It has 18 specialty mail order pharmacies and 5 mail service pharmacies.

• Revenue amounts more than $99 billion.

• It is known to be the #1 provider for prescriptions.

• Ranked as # 1 in Specialty Pharmacy.

• Known to be the largest employer of Pharmacists and Nurse Practitioners.

• It is known as the # 1 retail Clinic Operator.

• It has become a more of a pharmacy benefits manager.

• Stores are innovated to the level where a customer will find the environment that is customer friendly.

• Loyalty-card program (ExtraCare Card) that encourages and maintains a record of the customer and also gives discounts and savings packages. More than 65 million active customers.

• Customer base is very loyal, due to the industry mining heavily on references.

• Convenient stores make it easier to approach and shop.

• Retail stores are more diversified according to the need of the customer i-e; Caremark, MinuteClinic.

• The firm has strong brand equity.

• Stores also have photoshop alongside pharmacy.

• Online website that holds a large variety and also provides tips for using a product.

• Customer service is strong based on the policies of the firm.

• CSR (Corporate Social Responsibility) is strong in the firm, it being a pharmaceutical company.

• Invests significantly in technology.

• Specialty pharmacies that are made to cure illnesses like organ transplants; HIV/AIDS; and genetic conditions like infertility, MS, and certain cancers.

• CVS Caremark Charity Classic has contributed more than $13 million to hundreds of different philanthropic organization that are dedicated to helping children and families.

• Recognized by the U.S. Chamber as a Partnership Award finalist for a 4 year relationship Boundless Playgrounds to build playgrounds for children.

• CVS Caremark All Kids Can, helps children learn and play and it provides a good opportunity for many children to get involved in a learning environment.

• Beauty 360 holds a strong hold on customers that regard beauty tips as well as beauty products.

• CVS ExtraCare Beauty Club launched that provides the ExtraCare cardholders with additional benefits regarding the beauty purchases as well as receive discounts.


• Inconsistency in store experiences and instability in the growth of the stores.

• Real estate compared to Walgreens.

• Sales major focus is on lower margin on products.

• There are many cases that have been recognized as armed robberies and for that the store chain should look upon its security.

• Govt. regulations and lawsuits.


• Invest significantly in acquired stores like (Eckerd, Osco, Savon, Longs).

• Invest in new acquisitions, like Universal American Corp.’s Medicare Part D.

• Growing photo development market ensures good future prospects.

• New customer base regarding Beauty 360.


• Pharmacist shortages are a real threat in the modern era and the firm is producing its own to keep its stronghold.

• Market share loss and the unstable growth of the firm.

• Traditional and non traditional competitors.



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