Business & Finance 8-1 Assignment: Next Steps Assignment

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7-2 Project Submission

Cole Staats

Southern New Hampshire University

BUS-400 Driving Business Opportunities

Alan Marley

June 18, 2023

7-2 Project Submission

Value Proposition

CVS Health Corporation, one of the largest pharmacy retailers in the United States, currently offers a value proposition that revolves around providing convenient and affordable healthcare services to its customers. With over 9,900 retail locations across the country, CVS Health Corporation is committed to delivering high-quality products and exceptional customer service through its extensive health product offerings (Pammal, Kreinces, & Pohlman, 2022). Their main product or service is centered on enhancing overall health outcomes for patients by offering prescription medications, wellness products such as vitamins and supplements, flu shots, and vaccines among others. As part of its strategic plan, CVS aims at transforming itself from just another drugstore into an all-encompassing healthcare company capable of satisfying all medical needs under one roof. They have strategically expanded their range of services beyond basic prescription filling to include Minute Clinics with nurse practitioners who can provide low-cost treatment for minor illnesses; home infusion services; chronic disease management programs. Through these actions, they strive to transform the traditional role of pharmacies within healthcare systems while also reducing costs for consumers thereby increasing accessibility to key healthcare solutions in today's changing landscape driven by technology advancements in digital innovation and patient engagement strategies.

Competitive Advantage

CVS Health Corporation stands to gain a significant competitive advantage by investing in new digital tools as part of its services. Over the years, CVS Health has built a solid reputation for providing top-notch health services and products to consumers across the United States. As a result, it constantly endeavors to improve and innovate its offerings to remain ahead of competitors. To this end, the company has identified an opportunity to leverage technology by implementing automated dispensing cabinets/units and medication therapy management into its services portfolio (Yuan, Ding, Zhou, Huang & Xi, 2019). By doing so, CVS Health will enable patients self-administer medication safely and efficiently without necessarily having an appointment with their physician or nurse practitioner; thereby promoting overall customer satisfaction at reduced wait times when filling prescriptions.

The company discovered that automation is not yet widely embraced by pharmacies as many still rely on traditional manual processes for dispensation which can cause delays or errors resulting from human error/Clerical mistakes. Hence through integrating these digital tools including smart packaging medicine strips that prompt you when it's time to take your medicine- It became clear how much more efficient service delivery could be if they adopted the use of advanced technologies. Embracing innovation aligns perfectly with CVS Health's core mission which puts people at the center of everything they do, making healthier living easier than ever before while also lowering medical costs associated with preventing costly chronic diseases through better lifestyle choices.

Risks and Opportunities

The growth opportunities of this company through digital pharmacy dispensing machines are immense. By leveraging cutting-edge technology, CVS Health Corporation can revolutionize the way medicines are dispensed to customers, making it more efficient and convenient than ever before. Digital pharmacy dispensing machines will enable patients to access their medication orders 24/7 using smart devices such as smartphones or tablets. They will be able to interact with pharmacists virtually via video conferencing and get advice on the dosage or side effects of drugs anytime they need it. Another key advantage for CVS Health Corporation is cost savings - these innovative machines not only minimize labor costs but also reduce waste by accurately measuring and monitoring inventory levels. Overall, CVS Health Corporation's focus on innovation through digital pharmacy dispensing machines presents significant growth opportunities for the company as it strives towards offering better accessibility, affordability, and personalized care options to its customers amidst an evolving landscape in healthcare services.

Before implementing these new services on a larger scale, it is crucial to establish the potential risks and growth opportunities they may present. It is also important to determine whether these tools could disrupt the current industry landscape and affect existing players in any way. This requires thorough market research, analysis of industry trends, and consumer behavior patterns. Additionally, identifying potential risks associated with the development of these new products or services can help mitigate adverse impacts on business operations or reputation in case anything goes wrong. Therefore, CVS Health must exercise caution when introducing these novel technologies so as not to compromise its long-standing legacy of excellence in healthcare delivery.

Growth Opportunities

CVS Health Corporation is a prominent healthcare company that has established a significant market presence through its innovative and comprehensive services. The corporation has identified several potential areas of growth, which will provide new opportunities to advance and expand the business. One such area is the provision of digital tools, including automated dispensing cabinets/units and medication therapy management, which enhances the quality of service provided by CVS Health Corporation. Additionally, being an established player in the pharmaceutical industry with extensive distribution networks across multiple channels enable them to capitalize on the growing demand for prescription medications both domestically as well as internationally. Furthermore, they have entered into strategic partnerships with leading providers across various industries that leverage their core strengths to create solutions tailored specifically toward end consumers- thus providing ample avenues for further diversification while maintaining steady revenue streams. Ultimately consistent focus on innovation coupled with establishing outposts at remote locations helps them reach untapped customer segments - enabling this giant corporation's competitive advantages allows it not only to retain a loyal customer base but also foster long-term sustainable growth opportunities over time in an increasingly dynamic marketplace driven by technological disruption along with ever-changing regulatory environment affecting health care sector worldwide.

New Innovation

CVS Health Corporation is a distinguished healthcare company that has been at the forefront of providing quality healthcare products and services to its customers. The corporation has consistently strived to innovate and improve on existing products and services, ensuring that they remain relevant in the dynamic market. One such innovation is the introduction of digital tools like automated dispensing cabinets/units which have revolutionized medication management. By introducing this new product, CVS Health Corporation recognizes its customers' evolving needs for more efficient and effective solutions for managing their medication regimen (Seeley & Kesselheim, 2019). Additionally, through Medication Therapy Management (MTM), CVS brings value to patients by taking an active role in identifying gaps in care as well as making recommendations for corrective actions. It is essential to note that this initiative fits seamlessly into CVSHC's capabilities given its already excellent reputation in delivering high-quality pharmaceutical service lines effectively; hence it continues serving consumers better than ever.

Target Segment

CVS Health Corporation has identified a targeted segment consisting of Gen Xers and Baby Boomers with high incomes. These individuals are known to prioritize their healthcare and have the financial means to do so. CVS Health Corporation's blue ocean strategy is focused on offering new services that cater specifically to this demographic, such as digital tools like automated dispensing cabinets/units and medication therapy management. With these cutting-edge technologies, CVS can provide its customers with a more streamlined and efficient experience while also enhancing the quality of care they receive. By investing in these innovative services, CVS Health Corporation aims to differentiate itself from competitors and create a new market space where it can dominate. The company recognizes the importance of staying ahead of industry trends by continually adapting its offerings to meet evolving customer needs, especially those of this lucrative demographic who seek convenience, accessibility, effectiveness, and personalization when it comes to their healthcare requirements.

Speculate Sales

As the leading healthcare provider in North America, CVS Health Corporation has always been at the forefront of innovation and modernization. With its latest venture into digital tools and advanced medication therapy management services, it is no surprise that they are projecting a staggering $348 billion in sales over the next 24 months. These new services will not only enhance their existing offerings but also tap into a never-ending demand for more efficient and effective healthcare solutions. The projected revenue gain for this project is monumental, with high returns on investment that will surely attract investors and senior management alike. However, like all projections associated with large numbers comes potential risks that should be considered before investing heavily in such an ambitious undertaking. Nevertheless, with CVS's proven track record of success within the healthcare industry and its focus on evolving alongside consumer needs, these risks can certainly be mitigated to make way for immense growth potential while providing top-notch care to millions across North America.

Speculate Profitability

Based on market research and projections, the proposed product or service by CVS Health Corporation is speculated to be highly profitable with an estimated revenue of $133 billion. Using the company's current income statement as a reference point, it can be observed that this revenue would significantly impact the functional areas of accounting, marketing, sales, and more. With competition in the marketplace from other companies offering similar products or services taken into account for these projections, it is expected that CVS Health Corporation will have a notable impact on industry standards and consumer preference. These numbers are purely speculative at this time but senior management should note that all indications point towards profitability for this proposed venture which could lead to significant growth opportunities for CVS Health Corporation in the future.

CSR Plan

CVS Health Corporation is committed to fulfilling its corporate social responsibility (CSR) by delivering exceptional service to the community and its customers. The company's CSR plan outlines various initiatives it has launched to support this commitment. For instance, CVS Health Corporation has invested heavily in digital tools such as automated dispensing cabinets/units and medication therapy management to enhance the services it provides. These tools have improved the accuracy and efficiency of its prescription fulfillment process and made healthcare more accessible for individuals living in underserved areas. Additionally, CVS Health Corporation has established several programs that aim at promoting health awareness among the communities it serves. Through these programs, the company provides free health screenings and information on preventative care measures aimed at helping individuals lead healthier lives. Apart from improving the well-being of those within their localities, CVS Heath’s CSR efforts have helped establish a competitive advantage for the company itself. Their dedicated focus on providing high-quality services whilst demonstrating their ethics through socially responsible actions gives their brand an edge over others who do not hold comparable values. In conclusion, strategic investments focused on better access to healthcare and innovative solutions like the aforementioned digital tools combined with their emphasis on giving back through community-driven initiatives prove just how committed CVS Health Corporation is toward making change.

DEI Plan

CVS Health Corporation is committed to cultivating a diverse and inclusive workplace that values all perspectives. As such, the company's DEI plan seeks to incorporate input from employees at every level, as well as community stakeholders and customers. By soliciting feedback from individuals with varied backgrounds, experiences, and cultures, CVS can better understand the needs of its diverse customer base and tailor its services to meet those unique requirements. The company recognizes that a corporate culture built on Diversity, Equity, and Inclusion is essential for attracting top talent and fostering innovation. With this in mind, CVS has integrated its DEI plan into the larger corporate strategic plan of incorporating digital tools like automated dispensing cabinets/units and medication therapy management, which will enhance the overall quality of healthcare delivery by improving patient outcomes while reducing costs. Through a comprehensive approach to diversity integration across multiple areas of focus within the organization – including hiring practices, training programs for staff members at all levels - and ongoing investment in technology solutions aimed at optimizing workflow efficiencies within our clinics or pharmacies. Thus, CVS aims to create value propositions that reflect what matters most to patients: personalized care delivered efficiently by trusted experts who are sensitive to their unique needs.

References

Pammal, R. S., Kreinces, J. B., & Pohlman, K. L. (2022). Importance of pharmacy partnerships in effective COVID-19 Vaccine distribution.  Disaster Medicine and Public Health Preparedness,  16(6), 2293-2295.

Seeley, E., & Kesselheim, A. S. (2019). Pharmacy benefit managers: practices, controversies, and what lies ahead. Issue Brief (Commonw Fund), 2019, 1-11.

Yuan, C., Ding, Y., Zhou, K., Huang, Y., & Xi, X. (2019). Clinical outcomes of community pharmacy services: A systematic review and meta‐analysis.  Health & Social Care in the Community,  27(5), e567-e587.