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CVS Corporation Analysis

Executive Summary:

The CVS Corporation is a leading healthcare provider. The company deals with pharmacy, specialty pharmacy, and clinical and mail-order services. The company has the highest market share of its competitors. Financial figures represent a sound financial performance. The company believes in innovation and reinvention. The values of the company stand for collaboration, integrity, care, and collaboration. The company follows a differentiation strategy to keep itself ahead of competitors. A strong brand name, a variety of services, and a strong customer base are among the company’s key strengths. CVS Health Corporation has a strategy to improve itself and reinvent itself continuously. These two factors differentiate the company from its competitors (CVS Health, n.d.).

CVS is a healthcare provider company. The company delivers the best healthcare to people and patients. The company makes sure that people can get the best healthcare items, including medicines, healthy food, and beauty products, at the stores opened by the company. The company believes in delivering all products that maintain the best health of its customers. The company provides several services to its customers and patients. The company has moved on from being just a pharmacy company. The company now provides pharmacy services, clinical services, specialty pharmacy services, mail order services, and digital services to its patients. Clinical services provide walk-in clinic facilities to patients. Through its clinical services, the company allows patients to connect with healthcare providers any time they want. Specialty pharmacy services provide medicines and drugs and help patients connect with others with the same illness. Specialty pharmacy services enable patients to connect with specialized physicians. Digital services ensure customers can manage their prescriptions on any online app. All they have to do is download it. The app allows patients to manage their prescriptions. The company has a huge market share in the pharmacy business. The market share is about 24.6% in mail choice. It has a market share of 22.57% in retail pharmacies. The total market segment of the CVS Health Corporation is 19.43% (CSI Market, 2017).

CVS corporation 2017 2016 2015 2014
Operating profit 9,517 10,338 9,454 8,799
Interest 1,041 1,058 838 600
EBT 8,476 9,280 8,616 8,199
Net sales 184,765 $177,526 $153,290 $139,367
return on sales 4.59% 5.23% 5.62% 5.88%
total assets 95,131 94,462 92,437 73,202
net income 6,623 5,319 5,237 4,644
return on assets 6.96% 5.63% 5.67% 6.34%
total shareholder equity 37,695 36,834 37,203 37,963
return on equity 17.6% 14.4% 14.1% 12.2%
free cash flows 8,075 6,456


Return on sales slightly declined in the year 2017, but the company is still generating ample revenues from its sales. About 4.59% of the revenue is generated from sales in the year 2017. Return on sales shows a declining percentage. This shows that the company must improve its ability to generate revenues from sales in the coming years. Return on assets has increased since the previous year. In 2017, the company generated 6.96% of its revenues from its assets. Return on equity has increased over the past three years. The company generates the highest revenue from its shareholders’ equity. Free cash flow has also increased (CVS Health, 2016).

External performance
High Troubled company Successful company
Low Crises Complacent company
Organizational health Low High

In my view, the company is successful. Financial indicators and market share represent exceptional external performance. The company has a higher market share than its competitors. Free cash flows and rising profits depict high performance. The company’s values ensure good organizational health. The values revolve around innovation, integrity, collaboration, diversity, and care.

The company completely protects employees’ rights. Diversity, leadership, teamwork, innovation, collaboration, care, integrity, and accountability are among the key values of the organization’s culture. The company believes in diversity, innovation, collaboration, and a family-like environment where productivity is enhanced and organizational objectives are met.

The company’s strategy is focused on reinventing the pharmacy, and the strategy suggests the innovative trends and culture followed by the company. The company’s purpose is to deliver the best possible healthcare solution to its customers. The company’s values surround accountability, care, innovation, integrity, and collaboration. The company has two main segments. They are mail-ordered and retail pharmacies. Safe Way, Walgreens, Express Scripts Holding Company, Dollar General, Family Dollar Stores, and Big Lots Company are among the top competitors. The company has the highest market share in all segments. The company’s unique service to its customers is specialty pharmacy services. These services are unique in the way that they allow patients to connect with people having the same illness and to build up hope that they can get over it by looking at how others cope with it. Patients can also connect themselves to experts in the same area for advice regarding their illnesses.

Strengths of the company include a well-known brand name, high revenues, a strong customer base, high market share, and delivery of a variety of services to the customers. Weaknesses include controversies regarding the violation of a regulation. Grocery and other unrelated segments generate lea profits for the company. The company follows a differentiation strategy that is a cost leadership strategy. The company believes in reinvention and innovation, both factors that are a part of the strategy and core values of the corporation. The company delivers unique services to promote better healthcare to its customers and stay ahead of competitors.


CSI Market. (2017). CVS’s Competition by Segment and its Market Share. Retrieved from

CVS Health. (2016). Annual report.

CVS Health. (n.d.). About. Retrieved from 2017:



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