SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses

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Strength: A wide range of products and services

The company provides a vast range of services and is not a classic medical company that owns a network of pharmacies. Instead, the company is primarily a healthcare provider, which is why it is expanding its network. Products supplied include patented medicines, beauty products, cosmetics, photo printing services, seasonal products, greeting cards, and convenience foods. CVS has an independent group of physicians and pharmacists who develop products of various classes of drugs.

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The company’s specialists can prescribe medication, get customers vaccinated, and offer recommendations for prescription and over-the-counter medicines and supplements. Management is constantly striving to improve the work of its branches and make the shopping experience for customers even more pleasant (Cao, 2020). Thus, various options for saving and enhancing the product range are offered constantly.

Moreover, one of the most extensive US medical holdings, CVS Health, which owns several clinical networks, announced its telemedicine service launch. Recent research, in particular, proves that using this model of care helps health care providers during a pandemic (Koonin et al., 2020). During the coronavirus period, the introduction of such a method of providing services allows the company to solve the problem of health safety of citizens and medical personnel. In addition to the fact that the organization’s clients are offered a variety of unique services, it is also clear how the state supports CVS (granting the right to administer vaccinations). Moreover, its innovations in providing goods and services are incredibly timely.


Assessment of the strengths and weaknesses of the enterprise in relation to the opportunities and threats of the external environment characterizes the presence of the enterprise’s strategic prospects and the possibility of their implementation. Depending on the combination of strengths, weaknesses, opportunities, and threats, one can assess the state of the business. The main task of the SWOT analysis is to reach the problem points of CVS Health for the subsequent improvement of a marketing strategy for the development of the enterprise. By identifying weaknesses, a company can improve its operations and use its competitive advantages to enhance its performance.

Weakness 1: Problems with entering other markets for goods and services

The company operates in a very dynamic market, competing with a large number of enterprises. Even though CVS Health is one of the leading organizations in its industry, it has problems entering the international market. The company faces competition from numerous local, regional, and large national corporations in each of its business segments. Key competitors in the markets it operates include Walgreens Boots Alliance (WBA), Rite Aid Corporation, PharMerica, Cigna, Express Scripts, OptumRx, Prime Therapeutics, MedImpact, and Humana Inc. The WBA is one of the company’s main competitors with a solid international presence, while CVS is mainly presented within the United States.

This circumstance represents the organization’s weakness, as it is fraught with risks if, for any reason, it becomes difficult to trade in the United States. When deciding how to enter new markets, one should focus on cultural differences, market attractiveness, and legal environment (Schellenberg et al., 2017). In an era of globalization, business concentration only within one country can lead to adverse consequences. That is, the organization will not be able to cope with the pressure of competitors providing services worldwide.

Weakness 2: Exposure to the influence of legal regulation

Companies with a wide variety of work areas must adapt quickly to new conditions and instantly make changes to business processes. Such adaptations are vital to integrate into the new context and prevent future disruptions. It is essential to understand that not every adaptive action necessarily improves the performance of an organization (Sarta et al., 2021). However, how quickly a company can pay attention to changes depends on how much it is protected from potential fines and claims for damages. Returning to the company’s initiative to expand its activities in the international market, it should be noted that CVS Health Corporation may face various liability claims, as the legal acts on healthcare companies differ from country to country. Legislative changes regarding drug delivery standards can also provoke lawsuits against the company. The company needs to monitor existing and implemented service delivery standards regularly to avoid potential risks and maintain a leading position in the market.

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Weakness 3: The likelihood of competitors repeating the company’s business model

A business model is a conceptual framework that supports the viability of a product or company and explains how a company operates, makes money, and how it intends to achieve its goals. In general, CVS’ business model includes retail pharmacies and the provision of healthcare services. The company is committed to minimizing costs within its business model through solid growth strategies (Anderson, 2019). Low cost of medical services for consumers allows maximizing the number of active clients of the company. Other companies can use successful CVS business strategies in their operations, bypassing the shortcomings.

Therefore, healthcare organizations will gain a competitive advantage that allows them to achieve tremendous success. It is impossible to prevent such a situation when one company uses the experience of another, and it is not necessary. Moreover, during the COVID-19 epidemic, in particular, such changes based on the experience of other companies will be beneficial for the well-being of the whole society if such changes are related to ensuring the safety of staff and customers (Ost, 2020). However, it should be borne in mind that such a situation could potentially occur and affect the leadership of CVS.


Anderson, D. (2019). CVS’s business model, generic strategy & intensive growth strategies. Rancord Society. Web.

Cao, I. (2020). CVS’s successful story and their ways to stay on top of American healthcare sector. EnvZone. Web.

Koonin, L.M., Hoots, B., Tsang, C.A., Leroy, Z., Farris, K., Jolly, B., Antall, P., McCabe, B., Zelis, C.B., Tong, I. Harris, A.M. (2020). Trends in the use of telehealth during the emergence of the COVID-19 pandemic – United States. Morbidity and Mortality Weekly Report 2020, 69, 1595–1599. Centers for Disease Control and Prevention. Web.

Ost, I. (2020). COVID-19 legal considerations: Changing your business model. KPMG. Web.

Sarta, A., Durand, R., & Vergne, J.-P. (2021). Organizational adaptation. Journal of Management, 47(1), 1-33. Web.

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Schellenberg, M., Harker, M. & Jafari, A. (2017). International market entry mode – a systematic literature review. Journal of Strategic Marketing, 26, 1-27. Web.

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"SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses." BusinessEssay, 1 Sept. 2022, business-essay.com/swot-analysis-of-cvs-pharmacy-strengths-and-weaknesses/.


BusinessEssay. (2022) 'SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses'. 1 September.


BusinessEssay. 2022. "SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses." September 1, 2022. https://business-essay.com/swot-analysis-of-cvs-pharmacy-strengths-and-weaknesses/.

1. BusinessEssay. "SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses." September 1, 2022. https://business-essay.com/swot-analysis-of-cvs-pharmacy-strengths-and-weaknesses/.


BusinessEssay. "SWOT Analysis of CVS Pharmacy: Strengths and Weaknesses." September 1, 2022. https://business-essay.com/swot-analysis-of-cvs-pharmacy-strengths-and-weaknesses/.