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  • December 1999 (Revised February 2001)
  • Case
  • HBS Case Collection

CVS: The Web Strategy

By: John A. Deighton and Anjali C. Shah
  • Format:Print
  • | Language:English
  • | Pages:16
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Abstract

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; Marketing Channels; Distribution Channels; Service Operations; Corporate Strategy; Pharmaceutical Industry; Web Services Industry

Citation

Deighton, John A., and Anjali C. Shah. "CVS: The Web Strategy." Harvard Business School Case 500-008, December 1999. (Revised February 2001.) (request a courtesy copy.)
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About The Author

John A. Deighton

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More from the Authors
  • The Economic Impact of the Market-Making Internet Advertising, Content, Commerce, and Innovation By: John A. Deighton and Leora Kornfeld
  • The Internet's Effects on Consumption: Useful, Harmful, Playful By: John A. Deighton and Leora Kornfeld
  • Sonder Holdings Inc: Using Technology to Solve Hospitality’s Frictions By: John Deighton and Leora Kornfeld
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