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CVS Pharmacys Strategic Plan of Expansion
CVS Pharmacy is a company selling medications and providing the population of the USA with health services, having more than 1000 retail clinics and nearly 10000 drug stores in America. It has online branches and a crucial digital presence in the USA. The strategic plan of this firm includes opening its stores worldwide, meaning going out of the USA borders. Recently the company has acquired a relatively big company, Aetna International, a strength of CVS Pharmacy because it shows its purchasing capability and plans to enter the international market (Frakt & Garthwaite, 2018). This merging also demonstrates the marriage of the insurance company and frug provider, which allows benefiting financially and decreasing the prices for the customers (Frakt & Garthwaite, 2018). The benefits of this cooperation are visible in the long-term development plan of CVS Pharmacy, mentioned in the part of broadened opportunities.
At the same time, the plan of entering the international market of CVS Pharmacy also has its weaknesses. For instance, this market has a very high level of competition: there is a Walgreens Boots Alliance, a crucial competitor of CVS Pharmacy that has a significant presence worldwide. This weakness is visible in the world market: international pharmaceutical companies are well-recognized and have a higher reputation than local ones. Despite this high level of competition, the plan to enter the international market seems primed to succeed. By merging with Aetna company, CVS Pharmacy has shown its purchasing capability, meaning that it can buy other start-ups and small firms. Thus, it will help the company develop more quickly and find solutions to enter other markets more efficiently. Moreover, the online branches of the company and its digital development will help CVS Pharmacy become a recognizable frug provider in new markets.
Reference
Frakt, A. B., & Garthwaite, C. (2018). The CVSAetna merger: Another large bet on the changing US health care landscape. Ann Intern Med.
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