CVS Corporation Analysis
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. 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 key strengths of the company. CVS Health Corporation has a strategy to continuously improve itself and reinvent itself. These two factors differentiate the company from its competitors (CVS Health, n.d.).
CVS is a health care 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. The company through its clinical services allows patients to connect with healthcare providers any time they want. Specialty pharmacy services not only provide medicines and drugs but also helps patients to connect with other people having the same illness. The specialty pharmacy services enable patients to connect with specialized physicians. Digital services make sure that customers can manage their prescriptions on any online app. All they have to do it to 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).
|return on sales||4.59%||5.23%||5.62%||5.88%|
|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 still, the company is 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 the year 2017, the company is generating 6.96% of its revenues from its assets. Return on equity has increased over the past three years. The company is generating the highest amount of revenue from its shareholder’s equity. Free cash flow has also shown an increasing trend (CVS Health, 2016).
|High||Troubled company||Successful company|
According to my view, the company is a successful one. Financial indicators and market share represent an exceptional external performance of the company. The company has a high market share than its competitors. Free cash flows and rising profits are a depiction of high performance. The values of the company ensure good organizational health. The values revolve around innovation, integrity collaboration, diversity, and care.
The company takes complete care of employees’ rights. Diversity, leadership, teamwork, innovation, collaboration, care, integrity, and accountability are among the key values of the culture of the organization. The company believes in diversity, innovation, collaboration, and a family-like environment where productivity is enhanced and organizational objectives are met.
The strategy of the company is focused on reinventing the pharmacy the strategy suggests the innovative trends and culture followed by the company. The purpose of the company is to deliver the best possible healthcare solution to its customers. Values of the company surround accountability, care, innovation, integrity, and collaboration. The company has two main segments. They are mail-ordered and retail pharmacies. Safe way, Walgreen, express script holding company, dollar general, family dollar stores and big lots company are among top competitors. The company has the highest market share in all segments. A unique service that the company delivers to its customers is specialty pharmacy services. These services are unique in the way that it allows patients to connect with people having the same illness ad to build up a 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. Weakness includes 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 a cost leadership strategy. The company believes in reinvention and innovation both factors are a part of the strategy and core values of the corporation. The company delivers a unique variety of services to promote better healthcare to its customers and to stay ahead of competitors.
CSI Market. (2017). CVS’s Competition by Segment and its Market Share. Retrieved from https://csimarket.com/stocks/competitionSEG2.php?code=CVS
CVS Health. (2016). Annual report.
CVS Health. (n.d.). About. Retrieved from 2017: https://cvshealth.com/about