Essay on Cvs - Web Strategy
CVS decided to expand its services by opening a Web -based drugstore. Initially, there were many doubts concerning how to do it “right”; building it from start, or acquisition were the options on hand. After studying the possibilities CVS decided to acquire Soma.com and gradually (less than 3 months) turn it into CVS.com. There were many challenges during the process: coordinating a bicoastal organization (Soma.com headquarters were in Seattle and CVS headquarters were in Rhode Island), determining how the reimbursement were going to be handle for online purchases, building brand awareness and increasing traffi c and sales on the new channel (the Web). This paper …show more content…
enable more products for purchase through the
jobs: “A physician could visit cvs.com site to
website (such as cosmetics, other related
prescribe, confirm a prescription or learn a
healthcare products, greeting cards), but the
patient’s formulary… [CVS] need[s] to make it
website team management constantly wa s in
easier to prescribe through CVS than elsewhere”
strategies for the website: CVS wanted to
disagreement with this idea.
(Shah, 1999, p.7)
Different delivery options: “an order could be mailed to the customer’s home or picked up at the
Undefined long-term pricing strategy for the website.
Inability to successfully draw customers to use
local CVS” (Shah, 1999, p.8)
Cvs.com site was treated as a SBU. It had its own
strategies implemented for it (free shipping,
marketing team and manager, who responded to
the website, despite the different marketing
lower prices, 24-hour service, etc.).
CVS marketing director.
Online pricing strategy: lower than in stores.
CASE ANALYSIS – CVS: THE WEB STRATEGY
Great market possibility: four times as big as
Online drugstores were a novelty. No one
books and CD’s, products that successfully were being sold online.