The Marketing Of Cvs Health Operates

1422 Words Sep 28th, 2015 6 Pages
Industry Overview:
The industry that CVS Health operates in is characterized as, the “Retail Drugstore” industry. Companies that operate in this industry offer a wide variety of goods and services such as prescription medication through their in-store pharmacy, over-the-counter medications, health and beauty items, toiletries, grocery goods, photo processing, and basic health services. This industry includes retail stores with a pharmacy and excludes mail-order retailers, hospitals and clinics.
Some hospitals and clinics offer their own pharmacy to their patients on site to cut out retail stores such as CVS Health. Hospitals and clinics that offer such services to their patients can be considered substitutes to a drugstore’s pharmacy. Also, to fulfill their health and beauty, grocery, and toiletry needs, consumers can choose to go to Wal-Mart or Target.
The retail drugstore industry became common in the United States around the 50 year period of 1870 – 1920. Before drugstores became prevalent, physicians would dispense medication themselves at their office. Once drugstores were invented, physician dispensing declined as drugstores could dispense medication and offered customers a soda fountain. However, owners of drugstores made most of their money from selling tobacco and soda rather than their medication (1).
Drugstores have evolved greatly over the years due to increasing competition. By 1990, the drugstore business was changing in various ways. Demographically, there…
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