Objectives
· Achieve 2010 profitability increases by 10%.
· Improve credit policy from liberal to tight.
· Acquire competitors in order to grow market share and sales volume.
· Global expansion.
· Continue to develop innovative services, which compete on pricing, technology, performance, consumer convenience and quality against competitors.
· Increase employee motivation and reward system.
· To be the easiest pharmacy retailer for customer to use. (CVS 10k, 2010)
· Enhance personalize customer services.
· To provide innovative pharmaceutical solutions and quality client service (CVS 10k, 2010).
Strategies
The overall implementation of Company’s strategies within in close future will certainly be enhanced by the economic recovery, and may require intensified effort in some areas of the operation throughout the process.
Licensing strategy for global expansion
CVS has grand Expansion and grand success with in US market. In order to place itself in the top global retail pharmacy company, CVS can expand its share in to foreign market place. Since CVS is related to somehow risky business environment. For CVS licensing would be the best strategy to expand their market into global market. In that way CVS does have to take full risk of the business into the foreign market.
Acquisition strategy for the market Expansion
In spite of macroeconomic turmoil on the current global scene, the company will continue to strengthen its market position through searching new acquisition opportunities. Even though CVS already sustained certain derogation in affect in the2008 and is still expecting to face some headwinds in 2009, the company’s main performance characteristics and conditions remain quite strong. The company manages well its strong brands, maintains good trade relationships, and holds major market share throughout the world. Due to this objective reality and solid financial grounds, the company can display confidence in the ability to spend on long-term growth initiatives. In addition to several previous acquisitions, the company will continue to seek appropriate acquisition opportunities and diversification not only within, but also outside of golf (Business Week, 2009).
Related and Unrelated Diversification Strategy
One of the possible ways to overcome the seasonality sale fluctuation and improve gross profit margin, would be implementation of a related or unrelated diversification strategy. Appropriate acquisition of different companies not directly related to the retail industry would stabilize the company’s sales throughout the year. The company should also search the opportunities for related diversification. One of the alternatives could be a development of their own brand products and services that would enable to practice with their own set of off-season and under unfavorable weather conditions.
Innovative technology
The retail industry became very technology driven that most new service technology do not stay on the shelves longer than a couple of years. Therefore, competing companies are forced to match their opposition with offering fast and prompt service offering advance technology. Price wars are unlikely in such a high-end segment because only matters are the quality and performance of the products and its innovation (Navy, 2010). Not only high investments in R&D, organization commitment, and human expertise contribute to the company’s innovations, but mainly attention given to “understanding customer experience” (CVS, 2010).
Other Strategies
· Internet strategy for sales improvement.
· Implementing discount programs for early payment of account receivable.
· Simplify store layouts and customer accessibility
· Greater benefits and incentives for employees
· Continuously updating Competitive pricing strategies
· Apply ongoing challenge sessions for employees to express concerns and their commitment to the company.
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