Irresistible SWOT Analysis of CVS – A Major Healthcare Solution Provider Based In The U.S.

Updated on: Dec 18, 2021

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Earlier we did the demanding SWOT analysis of Johnson & Johnson – one of the leading brands globally supplying health & health care services. Today in this blog we will be talking about the irresistible SWOT analysis of CVS. 

CVS Health is a major healthcare solutions provider based in the U.S. that provides care in ways that no one else can. By enhancing access, decreasing costs, and being a trusted partner for every significant moment of health, they help individuals navigate the health care system and their health care. And they do it all from the heart, every day.

Another reason for the success of CVS which is big now is its digital marketing strategies.  Currently, there is great progress and demand for digital marketing and if you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO of IIDE, Karan Shah.

Do you want to learn how CVS succeeded in the market? In this blog, we will be learning about the SWOT analysis of CVS.

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About CVS

SWOT Analysis of CVS - CVS Health Centre

Consumer Value Stores (CVS) was formed in 1963 by three brothers, Stanley and Sidney Goldstein, and Ralph Hoagland, who built the business from a parent firm, Mark Steven, Inc., which assisted merchants in managing their health and beauty aid product lines. 

The company began as a network of health and beauty aid stores, but pharmacies were added after a few years. The company joined the Melville Corporation, which operated several retail enterprises, to help with development and expansion. CVS Corporation broke out from Melville in 1996, becoming an independent business trading on the New York Stock Exchange as CVS, following a period of expansion in the 1980s and 1990s.

CVS Health Corporation (formerly CVS Corporation and CVS Caremark Corporation) is an American healthcare conglomerate that owns CVS Drugstore, a retail pharmacy chain, CVS Caremark, a pharmacy benefits manager, and Aetna, a health insurance business, among other brands. Woonsocket, Rhode Island, is the company’s headquarters. CVS Health is the world’s ninth-largest corporation by revenue and the fourth-largest firm on the Fortune Global 500 list.


Quick Stats on CVS
Founder Stanley and Sidney Goldstein, and Ralph Hoagland
Year Founded 1963
Origin Lowell, Massachusetts, U.S.
No. of Employees 295,000
Company Type Public
Market Cap $ 132.824 Billion (2021)
Annual Revenue $ 268.70 Billion (2020)
Net Income/ Profit $ 7.17 Billion (2020)


SWOT Analysis of CVS - CVS Heath Cosmetics & Convenience Foods
(CVS Health Cosmetics & Convenience Foods, Source: RTTNews)

Products & Services by CVS

  • CVS Pharmacy & Drugs
  • Beauty products and cosmetics
  • Convenience Foods
  • Health Care Provider
  • Pharmacy Benefit Manager
  • Virtual Care Services

Competitors of CVS

  • Express Scripts
  • Avella Specialty Pharmacy
  • Apollo
  • Walgreens
  • Rite Aid

SWOT Analysis of CVS

SWOT stands for strength, weaknesses, opportunities and threats which is an analytical technique used for assessing your business in the four aspects. SWOT analysis is simple to analyse and determine what is best for the company at present as well as to formulate a successful strategy for the future. Accordingly, the SWOT analysis of CVS is carried out.

To better understand the SWOT analysis of CVS, refer to the below infographics:

SWOT Analysis of CVS - SWOT Infographics of CVS

Let’s first start by analyzing the strength of CVS from the SWOT analysis of CVS.

Strengths of CVS

  • Dependable Suppliers: The firm has a good quantity of competent raw material suppliers, which allows it to bypass many supply chain bottlenecks.
  • Well-built Brand Portfolio: Over the years, CVS has funded in forming a strong brand portfolio. This brand portfolio is remarkably useful when the organization wants to expand into new product sections.

SWOT Analysis of CVS - Virtual Care Services
(CVS Health – Virtual Care Services, Source: IIDE Creator’s Room)

  • Digital Transformation: CVS works broadly on digital innovation which makes CVS one of the leading digital health solution providers. Their virtual care services include 1-on-1 online consultation with doctors and their CVS Health mobile application lets customers order prescription medicines and a range of CVS Health products and services anytime and anywhere. 

This revolution and change in the world are all possible due to the rising scope of digital marketing. The time is running in which virtual healthcare solutions have been put in our hands and this change is proving advantageous in such current scenarios. If you want to implement such a digital revolution in your business then learning various digital marketing skills will help you to do so. Also, pursuing these courses has been proven to be beneficial to many students in terms of career opportunities and growth.   

  • Powerful Distribution Network: CVS has built a solid distribution network that reaches its products to its potential market.
  • Mergers & Acquisition: Prospering track record of blending corresponding firms through mergers & acquisitions. The firm has successfully integrated various technology companies into streamlining its operations and developing a strong supply chain.
  • Adequate Profits on Capital Expenditure: CVS is reasonably successful at the execution of new projects and making good returns on capital expenditure by forming additional revenue streams.
  • Strong Dealer Association: It has established a culture amongst distributors & dealers where the dealers not only promote the company’s products but also spend in training the sales team to show the customer how they can get the maximum benefits out of the product.  

Weaknesses of CVS

  • Limited Success Beyond Core Business: Despite being one of the industry’s leading companies, CVS Health has struggled to expand into other product sectors due to its current culture.
  • High Staff Turnover Rate: Compared to other companies in the sector, CVS Health has a higher attrition rate and must spend significantly more on employee training and development than its competitors.
  • Weak in Anticipating Demand: In comparison to its competitors, it is not particularly effective at anticipating product demand, resulting in a greater percentage of missed chances. One of the reasons CVS Health day’s inventory is so high in comparison to its competitors is that the company isn’t particularly effective at anticipating demand, so it ends up holding more inventory in-house and in the channel.
  • Lost Modest Market Share: Because the firm was unable to meet the difficulties posed by new entrants into the industry, it lost modest market share in narrow sectors. To address these issues, CVS Health must develop an internal feedback process that includes direct input from the sales staff on the ground.

Opportunities for CVS

  • New Technologies: CVS Health may use the new technologies to implement a differentiated pricing approach in the new market. It will allow the company to keep its current consumers by providing excellent service while also attracting new customers through various value-oriented offers.
  • Benefits of New Taxation Policy: The new tax policy will have a big influence on how businesses operate, and it will provide new opportunities for existing companies like CVS Health to enhance their profits.
  • Reduced Transportation Costs: As a result, decreased shipping costs can cut the cost of CVS Health’s products, giving the firm the option to either increase profits or pass savings on to customers to acquire market share, focusing on the advantages to customers.
  • Consumer Behaviour Patterns: New consumer behaviour patterns may offer up new market opportunities for CVS Health. It gives the company a wonderful chance to expand into new product categories while also generating new income sources.
  • New Markets as a Result of Government Agreement: CVS Health has been given the chance to join a new emerging market as a result of the adoption of a new technological standard and a government free trade agreement.

Threats to CVS

  • Local Distributors: Local distributors’ growing power poses a danger in some areas, as the competition pays local distributors larger margins.
  • Rising Raw Material Costs: CVS Health’s profitability may be jeopardised by rising raw material costs.
  • Wage Levels: Rising wage levels, particularly movements such as $15 an hour, and rising costs in China may put a severe strain on CVS Health’s profitability.
  • No Consistent Supply of Creative Items: The firm has produced several products over the years, but they are frequently in response to the development of other companies. Second, the supply of new items is irregular, resulting in high and low swings in sales numbers over time.
  • Counterfeit Drugs: CVS Health’s product is also vulnerable to counterfeit and low-quality product imitation, particularly in emerging and low-income regions.

This ends our irresistible SWOT analysis of CVS. Let us conclude our learning below.

Digital Marketing Academic Challenge 2024 - DMAC

To Conclude

Overall, CVS Health has worked hard to adhere to the principles outlined in both its vision and mission statements. Every move taken by the firm has furthered the company’s objective of making customers more health-conscious and healthier in general. CVS is an excellent example of how a strong vision and mission statement can guide and concentrate a firm as it makes decisions and plans for the future.

With the development in digital marketing, the company’s biggest hurdle is to manage its revenue and consumer products. CVS maintains a gender equivalent environment however has fallen for some allegations. 

CVS has some stringent competition with other companies but has managed to maintain its position. This is because of the excellent digital marketing strategies. Its exploration in the healthcare sector is remarkable. 

With growing times the strategies are evolving. Digital marketing is progressing day by day and learning about it is extremely crucial. So, if you are interested in discovering more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of CVS has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also check out an in-depth study on the marketing strategy of Johnson & Johnson.

If you enjoy in-depth company research just like the SWOT analysis of CVS, check out our IIDE Knowledge portal for more fascinating case studies.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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