Assignment: Marketing and Supply Chain Management
Article: CVS's $68 Billion Bid to Bring One-Stop Shopping to Health Care by Zachary Tracer.
QUESTIONS
On Wednesday, October 10, the acquisition of health insurer Aetna Inc. was approved by the US government. The Justice Department'sOK to proceed (with certain conditions) allows the largest merger ever in this industry to move forward. Reports suggest that the combined company has the potential to "transform" how consumer health care is delivered in this country.
1) What marketing-environment conditions might enable CVS to benefit from acquiring Aetna? What synergies or economies of scope could justify their diversification into health insurance?
2) Look up what the business press and analysts have said about this merger and what it will mean for the new, combined company.
If you were Chief Marketing Officer (CMO) at Walgreens or Rite Aid - CVS's two largest competitors in the drug store space - how do you propose that your company responds to shifts that are likely to occur? How should your firm's marketing strategy evolve or change?
3) Do you think this new model of healthcare delivery will change how YOU use health care, or will your behavior stay mostly unchanged?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.