CVS Health's business is divided into two main parts: a retail empire and a pharmacy benefit management, business. Both of these business segments enjoy strong competitive positions: CVS Health's PBM business generates revenue by helping other large institutions (employers, unions, and governments) control their spending on pharmaceuticals. This business segment is high-volume and low-margin, where scale is critical. The bigger the business becomes, the more bargaining power it holds with drug makers. With more than 80 million members, CVS Health runs the second-largest PBM network in the country. When adding in the purchasing power of its retail division, the company's negotiation power is huge, which it uses to negotiate favorable terms for