Demographics
An aging population is likely to seek different kinds of medication and stop using the ones they have been using before. This necessitates the need for different kind of drugs and products that may be used to foster wellness. Another demographic is the women who opt not to have children. Many women are opting not to reproduce and instead spend their money on hair and beauty products which they can access easily from a drug store. Another demographic are the millennials who prefer to shop online for its convenience and positive reviews on pharmacies (Morgan, 2006).
Social Issues
Economic changes would definitely change the market for CVS Pharmacy. When the economy is not doing very well, people would have less money to spend and would opt to prioritize especially when it comes to drugs. Only drugs that are important would be bought and there would be less consumption of non- essential products. The development of technology also changes the market. Online services which allow the population to easily refill prescriptions and buy drugs which would be paid for online and delivered at the doorstep would increase CVS Pharmacy's sales (Brooks et. al., 2008).
Supplier's
CVS Pharmacy is likely to make more profit if its suppliers lower the cost of drugs and products sold to the pharmacy. Relations with the suppliers should also be mutually beneficial due to the fact if the supplier's products have no market base within the area that CVS pharmacies are located, they may opt to pull out or even terminate their contract with the pharmacy. This would lead to a loss in sales and the sourcing of other suppliers who may increase their prices and reduce the pharmacy's profitability. Another aspect of the relationship is the terms with which the contract is negotiated. If the terms of the contract are not favorable to either side, the relationship would be strained and would not be beneficial to either side (Jambulingam et. al., 2009).
References
Brooks, J.M., Doucette, W.R., Wan, S., Klepser, D.G. (2008). Retail pharmacy market structure and performance. The Journal of Healthcare Organization, Provision and Financing, 45(1).
Jambulingam, T., Kathuria, R., Nevin, J.R. (2009). "How fairness garners loyalty in the pharmaceutical supply chain: Role of trust in the wholesaler‐pharmacy relationship". International Journal of Pharmaceutical and Healthcare Marketing, 3(4), pp.305 - 322
Morgan, S.G. (2006). Prescription drug expenditures and population demographics. Health Services Research, 41(2), pp. 411-428.
