Overview
It’s the moment of truth: the first step in introducing the new project to senior management. The senior management team is located in another state and wants to hear your pitch remotely. They have given you five minutes to deliver your pitch during a leadership meeting.
Prompt
Create and record an elevator pitch for your new product or service using your project outline as a guide. In your pitch, be sure to include the following:
- Introduction: Introduce your product or service.
- How it fits: Describe how the product or service fits into the overall strategic plan and mission of the company.
- Speculate about whether the product or service fits within the capabilities of the company based on your research from previous modules (use resources like Marketline.com, Yahoo Finance, and investor relations pages within the company’s website).
- Justification: Justify your suggestion based on the numbers.
- What will be the revenue gain?
- Speculate on an ROI that justifies the project for investors and/or senior management.
- Enhancing the mission: Explain how the new product or service enhances the company’s overall mission.
- Does it project profitability?
- Support your position with information and data from the company's 10K (use resources like Marketline.com, Yahoo Finance, and investor relations pages within the company’s website).
Guidelines for Submission
To complete this project, you must submit the following:
- A 1- to 3-page elevator pitch script in a Word document using double spacing, one-inch margins, and 12-point Times New Roman font. Sources should be cited according to APA style.
PROJECT OUTLINE for CVS Pharmacy Services 2
Project Outline: Pharmacy Services for CVS Health Corporation
Cole Staats
PROJECT OUTLINE for CVS Pharmacy Services 1
Southern New Hampshire University
About Pharmacy Services
CVS Health Corporation should improve its pharmacy services. The company can utilize digital tools, such as automated dispensing cabinets/units and medication therapy management, to enhance its services. CVS Health can also use messaging tools to keep patients engaged and connected.
Goals
1. To provide quality, convenient services,
2. To improve patient outcomes, and
3. To improve patients’ lives.
Target Customer
The target customers are Gen Xers and Baby Boomers with high incomes. Gen Xers are currently between 41 and 56 years. On the other hand, Baby Boomers are between 59 and 77 years old. As we all know, older individuals are more vulnerable to diseases like diabetes, dementia, back pain, arthritis, respiratory diseases, and cancer. This is because our immune system deteriorates as we age. Therefore, older adults require more healthcare services compared to their younger counterparts. Improved pharmacy services will help meet older people's health needs and health-related problems.
Market Opportunity
Reports show that by market share, CVS Health Corporation was the leading United States pharmacy in 2022. That year, the company held approximately 25% of the prescription drug market revenue (Mikulic, 2023). Cigna, one of CVS’s competitors, reported a significant increase in market share through the acquisition of Express Scripts in 2018. Therefore, CVS Health can overcome competition and increase market share by improving its pharmacy services.
Financial Opportunity
CVS Health will also enhance its revenue and cash flow by improving pharmacy services. Service improvement can reduce errors, increase customer satisfaction, and eventually increase sales. A sales increase is associated with a positive cash flow. A Positive cash flow suggests that more cash is coming in than going out of the company, which is necessary for CVS Health to maintain long-term growth (Smith, 2021). In contrast, a negative cash flow threatens the company’s well-being. Further, an increase in sales can increase the company’s profits.
Timeline
Activity Duration
Identify suitable digital tools 4-10 weeks
Test and deploy the tools 1-2 months
Inform customers 1 day to 1 week
References
Mikulic, M. (2023). U.S. pharmacies ranked by prescription drugs market share 2022. Statista.
Smith, S. (2021). A Healthy Cash Flow: The Most Crucial Element For Sustained Growth. Forbes.
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1-2 Blog: Project Analysis
Cole Staats
Southern New Hampshire University
BUS-400 Driving Business Opportunities
Alan Marley
May 7, 2023
1-2 Blog: Project Analysis
CVS Health Corporation is a healthcare company headquartered in Woonsocket, Rhode Island, United States. It is the leading pharmacy service provider in the country, with over 9,900 stores across different states. The company provides various products and services, including healthcare and wellness, personal care products, beauty products, and, most importantly, pharmacy services. But still, CVS faces tough competition from other companies (refer to Figure 1.0). To fight this competition, CVS Health should improve its pharmacy services to create a better customer experience.
Value Proposition
CVS specializes in healthcare services. It operates through retail segments, pharmacy services, and healthcare benefits. The organization delivers innovative solutions that meet customers’ unique needs and preferences and earn their loyalty (CVS Health, n.d.). This has created a strong differentiation between CVS Health and its competitors, including Cigna, MedImpact, UnitedHealth Group, and Rite Aid.
Profitability
CVS is profitable, though the company experienced a drastic decline in annual profit in 2022. According to reports, CVS generated over 322 billion U.S. dollars in revenue for the financial year ending December 31, 2022, a 10 percent increase from 2021 (Minemyer, 2023). Revenue also grew in the pharmacy services segment. CVS Pharmacy generated over 43 billion U.S. dollars in revenue in the fourth quarter of 2022, an 11 percent increase from the fourth quarter of 2021. However, profit declined from 7.9 billion U.S. dollars in 2021 to around 4 billion U.S. dollars in 2022.
SWOT analysis Strengths
The company’s main strengths are reliable suppliers, a reputable brand name, acquisitions, and strong distribution networks (refer to Figure 1.0). CVS Health is well-known for having a reliable and strong supplier network in the country. By having reliable suppliers, the company avoids shortages of raw materials and ensures superior quality. Besides, CVS Health has a strong brand name. Customers can easily memorize the brand while shopping for healthcare and pharmaceutical products. Additionally, CVS has been actively acquiring other companies over the years, strengthening its competitiveness and enriching its portfolio. Lastly, CVS Health has a strong distribution network. This ensures its products and services reach the target customers. CVS can leverage these strengths to improve its pharmacy services.
Product or Service Singularity
The company will use digital tools to improve its pharmacy services. This will help improve customer experience (both online and in-store), giving customers more choices and enhancing convenience while ensuring more time for meaningful pharmacist-patient interactions.
New Product or Service Projections
CVS Health will strengthen its profitability by improving its pharmacy services. According to reports, CVS Health dominates the pharmacies and drug stores market. The company accounts for over 30 percent of market revenue (IBISWorld, 2023). By improving its pharmacy services, CVS Health will increase its market share, as well as profit and revenue.
Figure 1.0: SWOT Analysis
|
Strengths 1. Reliable suppliers 2. Reputable brand name 3. Acquisitions 4. Strong distribution networks |
Weaknesses 1. Inefficiencies in anticipating demand 2. High staff turnover 3. Generic products and services, 4. Limited success outside main business |
|
Opportunities 1. Investment in new technologies 2. Online channels 3. International expansion 4. The new tax policy |
Threats 1. Stiff competition 2. Regulation risks 3. High inflation 4. Local distributers |
References
CVS Health. (n.d.). Our Purpose. CVS Health.
IBISWorld. (2023). CVS Health Corporation – Company Profile. IBISWorld.
Minemyer, P. (2023). CVS reports double-digit revenue growth in 2022, $4.1B in profit. Fierce Healthcare.
