Assessing Company's Entrepreneurial Strengths And Strategies

Assessing Company’s Entrepreneurial Strengths and Strategies for Value Creation

Complete the table below, assessing the company’s strengths and weaknesses and describing the company’s approach to innovation. Company name: CVS Health Company website URL: 3 to 5 entrepreneurial strengths of the company (90 – 175 words) A significant entrepreneurial characteristic of CVS Health is its ability to link divisions to increase efficiency. A well-connected network of efficient divisions makes it much easier for the company to manage its operations and activities. A second strength of ours is our ability to penetrate new markets effectively. As a retailer of pharmaceuticals, the company has developed a strategic business strategy that allows it to easily enter new markets and create substantial market shares. A competitive advantage is gained by the company as a result of this. Brand equity, or the ability to sell goods and services that meet market expectations, is the third advantage (Koh et al, 2019). Firm expansion into new regional markets is expected due to a strong penetration rate.

Major elements of the company’s approach to entrepreneurship and value creation (175 words) Two categories of methods can be used by a firm to engage in entrepreneurial activities and create value. At CVS Health, business models such as pharmacy benefit management (PBM) and brick-and-mortar retail stores are central to its strategy. CVS Caremark, a subsidiary of CVS Health, exemplifies the PBM model, overseeing the distribution of pharmaceuticals to optimize supply chain efficiency and reduce costs (Kassler, 2020). This business model, developed collaboratively by the American Society of Health System Pharmacists (ASHP), enhances efficiency in medication distribution. CVS also operates retail stores with both physical locations and an online platform, leveraging cost-based generic strategies to maximize market reach and competitiveness. These models enable CVS to pursue aggressive expansion and maintain market dominance through cost leadership (Kassler, 2020). Consistently focusing on operational efficiency and broadening service offerings maximizes value creation opportunities, reinforcing CVS’s leadership in healthcare retailing. This strategic approach ensures the company remains adaptable and innovative to sustain its competitive advantage.

Paper For Above instruction

CVS Health exemplifies a dynamic combination of entrepreneurial strengths and strategic initiatives that collectively contribute to its market dominance and value creation. The company's inherent ability to streamline operations across its divisions stands out as a key strength. By integrating various segments—retail pharmacy, pharmacy benefit management, and healthcare services—CVS enhances operational efficiency and offers a seamless experience for customers and partners alike (Guo et al., 2018). This synergy not only optimizes resource utilization but also fortifies CVS's competitive position in both the retail and healthcare sectors.

Another notable strength is CVS’s proficiency in market penetration. The firm’s extensive network of stores and strategic geographic placement facilitate entry into new regional markets with relative ease, fostering rapid expansion (Koh et al., 2019). This strategic positioning, coupled with strong brand equity—built through consistent service delivery and healthcare innovation—allows CVS to meet and exceed consumer expectations, thereby capturing significant market shares and reinforcing its industry leadership.

CVS’s approach to entrepreneurship is anchored in innovative business models that foster value creation. The pharmacy benefit management (PBM) model stands out, allowing CVS to oversee the entire medication distribution process, thereby lowering costs and improving supply chain efficiency (Kassler, 2020). This model enables the company to negotiate better prices, optimize medication management, and deliver cost-effective healthcare solutions. Simultaneously, CVS's retail presence—operating both physical stores and online platforms—employs a cost-based generic strategy to maximize market reach and affordability (Kassler, 2020). Such strategies align with the company’s goal of being the lowest-cost provider within the retail pharmacy industry, reinforcing its competitive edge.

To further increase entrepreneurial value creation, CVS should expand its marketing efforts into emerging markets and developing countries. By leveraging its low-cost structure and operational efficiencies, CVS can penetrate new geographical regions, capturing unmet healthcare needs and building new revenue streams. Strategic investments in digital health services, telemedicine, and personalized healthcare offerings could also position CVS as a leader in the evolving healthcare landscape. Additionally, embracing innovation through partnerships, such as with health tech startups or local healthcare providers, could enhance service delivery and patient engagement (Koh et al., 2019). These initiatives would not only diversify revenue but also reinforce CVS’s commitment to accessible, affordable healthcare, ultimately driving sustainable growth and value creation.

References

• Guo, K. H., & Eschenbrenner, B. L. (2018). CVS Pharmacy: An instructional case of internal controls for regulatory compliance and IT risks. Journal of Accounting Education, 42, 17-26.
• Koh, H. K., Singer, S. J., & Edmondson, A. C. (2019). Health as a way of doing business. JAMA, 321(1), 33-34.
• Kassler, W. J. (2020). Turning barriers into benefits to facilitate public health and business partnership. American Journal of Public Health, 110(4).
• Williams, R. N., Wright, D., Crowther, A., & Denham, T. (2020). Multidisciplinary evidence for early banana (Musa cvs.) cultivation on Mabuyag Island, Torres Strait. Nature Ecology & Evolution, 4(10).
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• Additional references would include scholarly articles on retail pharmacy strategies, competitive advantage theories, and healthcare innovation, ensuring a comprehensive academic support for the analysis.