CVS Caremark Global Expansion to United Kingdom Global Business Management Abstract CVS Corporations was founded by Sid Goldstein, Stanley Goldstein and Ralph Hoagland, May 8, 1963 in Lowell, Massachusetts. In 2007 CVS pharmacy merged with Caremark Rx which created CVS Caremark. CVS Caremark is currently the number two pharmacy store in the United States with revenues exceeded $100 billion dollars and has over 7,400 hundred stores in 42 states. The corporation has been successful for over 40 years in the United States. CVS Caremark is designing a global expansion strategy to target areas that are profitable and promising demographically.
The worst year appeared to be 2009 with the luxury segment rebounding in 2010 and 2011. The following is a comparison of 2011 sales growth of Nordstrom as compared to several of its competitors: Nordstrom 7.2% Neiman Marcus 7.5% Saks 5th Avenue 6.4% Bloomingdales 5.4% Nordstrom, in its most recent Annual Report, anticipates its same-store sales to be 4 to 6 percent but sets a corporate goal of high single digit Total Sales Growth. Total sales growth is achieved through the expansion of retail space and increased online sales. Same-store sales are sales growth
Opportunities: -Expand into different regions blue collard segment- Expand into new market segments in East Region- New products- Female- “First Time Drinkers” Threats: -Aging core- customer segment- Major Domestic producers- light beer- Second tier domestic producers- Wine and spirited drinks companies- federal excise tax rate, increase in national health concern MMBC’s competitive advantage is the companies unique brand equity. Mountain Man Lager is distinctive because of its’ bitter flavor and slightly higher-than-average alcohol content. The company has made a profit since 1925 until 2005 about 80 years by having a loyal core customer base and building on its brand equity. It is sustainable as long as they keep or increase their core customer market without jeopardizing the brand image. The company’s competitive advantage is a combination of the Brand loyalty, core customer market, Brand Image, “Grass Roots” Marketing which is more effective in there region than competitors.
The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150). During the 2009 to 2010 recession, Frog’s Leap faired out well in accordance to historical financial ratios (See Exhibit 3) and similar sized wineries during the FY 2009 to 2010 as illustrated in Exhibit 6 (Gilinsky, 163). Since 1999, premium wineries in the North Coast have increased from 329 to 1250 (Gilinsky 145 – 146). In the past decade, 25 to 44 year olds have emerged as the largest segment of wine consumers, replacing Baby-Boomers who led most of the industry’s growth in the past 30 years (Gilinsky 147). The industry is in a stage of market saturation, causing financial difficulties as wineries are facing downward pressure on prices and margins.
On the surface at least, the marketing strategies used by Colgate have been more effective than Crest. According TREFIT, 2010 the expect Colgate’s oral care business to generate at the final of 2016 is 25.5 billion in annual revenue; by contrast, the expectation of P&G’s Oral Care division is to generate $16.5 billion in annual revenue. One of the reasons that left behind Crest was in 2005 while Colgate increased its oral care market share from 26% in 2006 to 33% in 2009, Crest has been flat. In 2006 Crest acquired Oral-B some that could be help to share market in the following years. Crest is a brand of toothpaste made in Germany and in the United States of America and sold worldwide.
One of Sam Walton's techniques for change is technological changes. By the 1990's the organization had been so successful and had more increasing growth than any other department store in the United States. Wal-Mart's product categories include: soft goods (apparel, linen and fabrics) accounts for 29% of sales, hard goods (hardware, house-wares automobile supplies, and small appliances) constitutes 28% of sales, candy (11% of sales) sporting goods and toys (10%), health and beauty aids (9%), gifts, records, and electronics (5%), shoes (3%), pharmaceuticals (3%), and jewelry (2%)." Wal-Mart provides consumers with "Everyday Low Prices" (Walmart.com). The price sensitive merchandise allows customers to get more for their dollar.
CVS brought in $123 billion in revenue in 2012 and ranks 13th on the 2013 Fortune 500 list of biggest U.S. companies. The company reported that the shares were down $1.11 to $65 Wednesday after making the announcement to discontinue the sales of tobacco products. Caremark has been increasing the companies positioning the healthcare market and has increased its pharmacy revenue from 7.25 to 8.5 percent doubling its rate of retail growth. “for some time to balance the choices our customers expect from us, with their ongoing health needs.” He said the company will continue to do this while also providing smoking cessation products. (Steenhuysen, 2014) References ascrouch.
Walmart Stores Walmart operates various formats of discount department stores under 53 different banners in 15 countries, including Walmart, Sam’s Club, & Asda, and is the largest retailer in the world. As of Jul 31, 2011 the company operated 9,667 total stores including 3,822 Walmart U.S., 609 Sam’s Club, and 5.236 International locations. Demand Since the Price elasticity of demand for the type of walmart’s products is very high, Walmart always succeed to be an attractive substitute store by having the lower price. This allows it to have a shift of the demand to right. Annual Sales Data | | 2011 | 2010 | 2009 | 2008 | 2007 | Net Sales (1,000′s) | $ 418,952,000 | $ 405,132,000 | $ 401,087,000 | $ 373,321,000 | $ 344,759,000 | YoY % Chg | 3.4% | 1.0% | 7.4% | 8.3% | 11.6% | Same-Store Sales Chg | -0.6% | -0.8% | 3.5% | 1.6% | 2.0% | | Walmart reported net income of $3.80 billion ($1.09 Diluted EPS) for the second quarter ended Jul 31, a 6% increase from a year ago.
The growth in margins was driven primarily by an increase in generic prescription drugs dispensed. Front-end margins remained firm even as the company made gross profit margin investments through reward points for its Balance Rewards program throughout the quarter. In addition, Walgreens private brand products increased in share 2.0 percentage points over the year-ago quarter to 22.0 percent. The LIFO provision was $55 million in this year's first quarter versus $45 million last
Case 4: Krispy Kreme Doughnuts, Inc. “Success is not forever and failure isn't fatal.” (Don Shula) The new millennium was a new era for Krispy Kreme Doughnuts. When it became public the shares were selling for 62 times earnings, and in 2003 fortune magazine call it “the hottest brand in America”. But in 2004 the company entered to a difficult phase when the share price decrease accompanied by several accounting reveals. The case six prepared by Sean Carr preset us with financial information about the company, and the point of this paper is to analyze it. Krispy Kreme Doughnuts, Inc., began as a family business in 1937 when Vernon Rudolph acquired a doughnut secret recipe from a French chef in New Orleans.