Posts Tagged ‘CVS’



A Strategic Lesson in a Tale of Two Drugstores

November 29th, 2011
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Have you noticed the very different strategic paths taken here of late by Walgreens and CVS, the national drugstore chains? What’s happened so far is a lesson in strategy and the importance of considering unintended consequences and long-term implications. For me, this drugstore case study evokes the old adage, “Be careful what you wish for.”
 
A recent article in Forbes magazine compares the stock performance of CVS and Walgreens, in an attempt to measure how each chain’s strategic decision around its pharmacy benefit managers (PBMs) program affected both how well each could negotiate terms and prices with insurers as well as its overall pharmacy sales. PBMs are designed to help a drugstore chain win a price advantage over competing chains.
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