Strategy essay

Fromthe analysis of the CVS organization, it is evident that althoughthe company is profitable, its profitability is not adequate tosupport a continuous growth of the organization. Therefore, in itsstrategy, the organization needs to focus on activities that willimprove its profitability. The following paragraphs discuss thestrategy that CVS should adopt so as to increase its profitability.

Fromthe financial analysis of the company, it is evident that healthy andbeauty products are selling better in the company. The company needsto do an analysis of how its products sell in the market and cut outthose products and services that are unprofitable. Through cuttingout the unprofitable products and services, the organization would bein a position to focus more on the products, which would realize moreprofits to the organization.

Sincethe company does not deal with tobacco products anymore, the companyhas an opportunity of increasing its profitability from targeting newcustomers. From the health and beauty products that the companyoffers, it can target on new customers emanating from the groups thatit already has this would provide an avenue for making more profits(Remsen 2). For instance, the company can consider targeting on newcustomers such as the high-income earners, who may need morespecialized services and products.

Furthermore,the manner in which the organization uses its resources in creatingmore resources is critical in the enhancement of its profits. Theentity needs to develop ways that would focus on efficientutilization of its resources. For instance, the organization shouldenhance its internal control system to ensure that its resources areused effectively. Such a move would enhance the profitability of theorganization (Remsen 3).


Remsen,John. Jr. Practical Advice to Improve Your Firm’s Profitability.ManagingPartner Forum,Vol. 1 (1), 2008. Print.