CVS versus Walgreens
The following is a case study using a recent event:
CVS versus Walgreens: An interesting recent case involves two
pharmacists CVS and Walgreens. Rather than a situation where the
two indulge in a competitive battle against each other over advertising
or a price war, they battle against each other on the services offered.
In early June 2010, Walgreens announced that it would “no longer participate
in new and renewed benefit plans from its rivals (CVS) drug
benefits unit” (CNN Money, June 7 2010). The main grievance of Walgreens
was CVS Caremark’s Maintenance Choice Plan which started
requiring patients that have chronic medical conditions to fill their prescriptions
at CVS pharmacies only rather than giving them the choice
to fill it at Walgreens (or other pharmacies). As a result of this announcement
both companies shares fell — CVS fell 8% and Walgreens
fell 2.7%. As a response CVS in a couple of days decided to drop Walgreens
from its pharmacy benefits plan, which would force some of its
benefits customers to pay a much larger amount to get their drugs from
Walgreens, leading to a potential loss of customers for Walgreens. As a
result CVS shares fell 1.5% and Walgreens fell 3%. Eventually, about
a week later the two pharmacies decided to end their war, coming to a
compromise agreement the financial terms of which were not disclosed.
As a result both firms saw their stock values increase.
write 2 compeltely different Briefly comments on this example as an application of the Prisoners
each Briefly comments should be at least 135 works that means the 2 Briefly comments should be at least 270 words