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Czmyr Justyna
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... based Arbor Drugs. 1999 CVS acquired Soma.com, the first online pharmacy, and renamed it CVS.com ... establish and expand PharmaCare, a PBM subsidiary of CVS ... – PowerPoint PPT presentation
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Title: Czmyr Justyna
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- Czmyr Justyna
- Pujos Sabine
- Vienna Zafeirenia
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Poland
- Area 312683 km2
- Population 38500000
- GDP 422 bn
- GDP per head 11070
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Cracow University of Economics
- Founded in 1925
- One of the biggest economic universities in
Poland - About 20000 students
- Each year more than 100 exchange students study
there
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France
- Area 543,965 km2
- Population 60.9m
- GDP 2,590 bn
- GDP per head 41,970
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ESC Montpellier
- Business school founded in 1897
- about1500 students
- Entered on competition
- Study management, accounting, law, marketing
- Master grade
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Greece
- Area 131,940 km2
- Population 11,262,000
- GDP(2008) 229 bn
- GDP per capita 28,000
- Inflation rate (2008) 4.2
- Unemployment rate (2007) 8.7
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- founded in 1920
- the third oldest University in Greece and the
oldest one in the general fields of Economics and
Business - 8 undergraduate programs, 27 graduate (Master's)
programs - 270 exchange students every year
- Exchange programs are also quite active at the
graduate level
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Healthcare system
- Private insurance
- HMO (Health Maintenance Organization)
- PBM (Pharmacy Benefit Management)
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II. Strategies in the drug industry
- Extensive mergers and acquisitions
- Increasing number of store locations
- Offering many different products and services
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III. A little presentation of CVS
- History
- 1963 CVS was founded in Lowell, Massachusetts
- 1969 Melville Corporation acquired CVS
- 1995 Melville Corporation approved a
restructuring plan, they decided to concentrate
only on drugstore industry - 1998 CVS purchased Michigan-based Arbor Drugs
- 1999 CVS acquired Soma.com, the first online
pharmacy, and renamed it CVS.com - 2006 CVS acquired Minneapolis-based
MinuteClinic
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- Background
- The largest pharmacy chain in the USA
- 7,000 stores across 45 states comparing to 3,888
in 1997, - Revenue 87,472 millions (2008)
- Operating income 6,046 million (2008)
- Net income 3,212 million (2008)
- 215,000 employees
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CVS not only a pharmacy
- Retail pharmacy
- Minuteclinic
- PBM services
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Retail pharmacy
- CVS in its stores offers a very wide range of
products prescription medications,
over-the-counter (OTC) drugs, health and beauty
products, cosmetics, greeting cards.
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MinuteClinic
- 500 of CVS/pharmacy stores in 25 states now
feature a MinuteClinic, the U.S. leader in
retail-based health clinics.
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PBM services
- Payors and patients count on Caremark for a broad
range of services, from managing pharmacy
benefits to filling prescriptions by mail or
offering clinical expertise.
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- Why is CVS able to succeed?
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CVS strategies major thrusts
- Achieve a superior position
- convenient and numerous store locations
- superior customer service
- attractive merchandise selection
- excellent price-to-value
- Integrated strategy
- establish and expand PharmaCare, a PBM subsidiary
of CVS - search out strategic alliences with other
elements of the industry value chain
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Retail Strategies
- aggressive and rapid program of expansion
- store development
- improve the area of human resources
- use of technology to improve its product selection
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Integrated strategy
- developing Pharmacare ( its PBM)
- pursuing strategic alliances with other
healthcare partners (Pfizer Health Solutions,
Harvard Pilgrim Healthcare)
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Core Business Processes
- store locations
- core product categories
- marketing
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1. Store locations
- What the ideal location should be?
- Do CVS need more new stores?
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2. Core product categories
- improvement
- servicing the needs of each customer
- effective category management
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3. MarketingCustomer service
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CVSs suppliers
- generating supply chain
- vendor income compensation provided by vendors
to retailers who promote their products
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Walgreens
- How does competitor of CVS perform?
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Background
- It was founded in 1901
- The Americas largest drugstore retailer in sales
- 7,000 drugstores in all 50 states
- Revenue 59.90 billion (2008)
- 237,000 employees (2008)
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Differences between CVS and Walgreens
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Growth strategy
- CVS primarily has grown through acquisitions of
existing pharmacy chains
- Walgreens has focused on internal growth by
opening (or relocating) new stores.
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Location
- CVS dominates an area by placing a large number
of stores within it.
- Walgreens locates a single store or a few stores
in isolated and less populated rural areas.
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Products
- Both companies offer a broad selection of
over-the-counter (OTC) drugs, prescription drugs,
health and beauty aids, greeting cards,
cosmetics, convenience foods, seasonal items and
some srvices like photo-processing services.
- -
- Walgreens relies more on front-end sales
(non-pharmaceutical merchandise in the front of
the store) and offers a broader product line.
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Comparable sales growth (2008)
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Stock price CVS
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Stock price Walgreens
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- Thank you for your attention!
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