CVS: The Web Strategy - The Case Centre

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Case

Reference no. 9-507-S17

Spanish language

Subject category: Marketing

Authors: John Deighton

Published by: Harvard Business Publishing

Originally published in: 2000

Version: 2 February 2001

Length: 19 pages

Data source: Field research

Topics: Corporate strategy; Distribution; Distribution channels; Internet; Leveraged buyouts; Marketing channels; Marketing management; New product marketing; Product development

Share a link: https://casecent.re/p/104148

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Abstract

This is a Spanish version. How should America's second-largest pharmacy chain respond to the challenge from online drugstores? What threat does the web pose to bricks and mortar distribution of prescription drugs and the other items that make up 50% of a drugstore's sales? This case describes the purchase of Soma.com by CVS, and its integration into the corporation. A number of tactical questions remain to be answered, and then there is the larger strategic question--why do this at all? Teaching purpose: Issues in the integration of traditional retailing with online channels.

Location:

United States

Industries:

Drug stores; e-Commerce; Health care services; Information services; Pharmaceuticals

Size:

USD15 billion revenues