Next, CVS has developed a reputation for quality. They sell the most respected products and produce many CVS brand generic cheaper alternative products. CVS operates, to some capacity in every U.S. state except Wyoming. They also operate in two U.S. territories and the District of Columbia. In four states CVS only functions within Target stores, and does not have full independent locations. However, the Northwest portion of the country has a smaller CVS presence, especially in less populated states. The market of CVS is quite stable. People of all races, sexes, ages, and education levels regularly shop at CVS. Therefore, any market shifts or changes would not impact CVS significantly. There are only three target markets CVS could attempt to …show more content…
So a new location would not succeed. They do, however, attempt to buy these stores when available. Lastly, CVS could expand into markets abroad. They may do this one day. However, this would be a massive undertaking because of all the requirements and cost associated with becoming international. Next, CVS uses an array of marketing tools. CVS advertises occasionally on TV and online often. Almost all Americans are aware of CVS, so their advertisements focus on presenting sales and unique or new CVS services. In the same way they present their sales. CVS sales are published and advertised online every week. They also use personal selling by sending ExtraCare members personalized sale catalogs of products they often buy. Their public relations deals with CVS controversies and public opinion. Next, CVS uses pricing strategies like most retail companies. CVS does price skimming and penetration consistently by raising and lowering prices every week. They use discounts very often by taking a percent off certain products weekly or giving general percent off coupons. CVS always uses psychological pricing by almost all prices end with …show more content…
The most worrying aspect perhaps is that CVS is growing to rapidly. It may be unable to keep up with this growth. Investing experts predict continuing growth of CVS, however. It is also worth noting that over the last five years, CVS, stocks have doubled. At some points they even more than doubled. CVS stocks have been going down moderately in this year, but not substantially and remains much higher than 2 years ago. Dividends have also been increasing consistently over the last five years. The income statements from the last three years, show that CVS has been growing. They have experienced an increase in net revenues and gross profit. However, CVS has also had an increase in operating expenses. On the upside however, CVS has experienced an increase in net income in recent years. They have experienced an average growth in profit of about 8 % in last few years. However, it is worth noting that the largest amount of growth has only happened in the last year. Net income before that was only around 4%. Therefore, it seems that CVS has been moving in the proper direction. Therefore, CVS appears to be a good investment. Practically all aspects of CVS health are stable or growing. There are effectively few weak aspects of CVS which appear notably scary to investors. While, the company is not perfect, it represents a safer investment than many companies. It is nearly impossible for CVS Health to collapse or