| HBS Case Collection
(Revised from original 1999 version)
CVS: The Web Strategy
How should America's second-largest pharmacy chain respond to the challenge from online drugstores? What threat does the web pose to bricks and mortar distribution of prescription drugs and the other items that make up 50% of a drugstore's sales? This case describes the purchase of Soma.com by CVS, and its integration into the corporation. A number of tactical questions remain to be answered, and then there is the larger strategic question--why do this at all? Teaching purpose: Issues in the integration of traditional retailing with online channels.
Keywords: Leveraged Buyouts;
Web Services Industry;
Deighton, John A., and Anjali C. Shah. "CVS: The Web Strategy." Harvard Business School Case 500-008, February 2001. (Revised from original December 1999 version.)