Blue Ocean Strategy - CVS Health Innovative Healthcare propositions to Consumers

CVS Health is an American pharmacy and healthcare company with nearly 10,000 stores in its network. CVS Health constantly innovates  towards the health of the consumers and provide them with all the required products and services to stay healthy that became the corner stone of success for the company. CVS Health redefined its brick and motor pharmacies to transform into health care system where customers can walk in and seek help. CVS uses digitalization and mobile technology to help deliver care and where in  28 million customers receive text message for pharmacy pickup and refill reminders. As part of value innovation the company intends to utilize patient data to create a “health-engagement engine” for better health care to its customers. A major selling point of walk-in clinics such as those operated by CVS and other companies has been that they will help reduce hospital emergency room visits by giving patients a lower-cost and more convenient place to go for minor problems.

Personalization is essential part of  of CVS’ front-store growth strategy through its “MyCVS” store clustering initiatives. CVS/pharmacy has also been busy leveraging its insights from its ExtraCare loyalty program to feed a more personalized, one-to-one relationship with its customers, and drive more efficient — and more lucrative — promotional investment, deemphasizing promotions on low-margin categories and prioritizing slower moving, but higher margin categories. CVS/pharmacy is investing significantly in an enhanced digital shopping experience.v

CVS moved beyond convenience offerings like drive-through and 24-hour service towards better  healthcare system delivery with various allied services that increase its revenues. Apart from finding solutions to address customer concerns like the rising cost of prescriptions, which led to the creation of the Rx Savings Finder, and the desire for simplified medication schedules, which spurred the development of the ScriptPath Prescription System.  Kevon Hourican described how CVS Pharmacy is working to improve the overall retail experience, with new health-focused store designs complete with “Discovery Zones” that highlight emerging products and specific wellness needs, as well as designs tailored to the communities where they are located.

Blue ocean Strategy ERRC grid in terms of CVS Health is that CVS health eliminated the need for patients to closely track the prescription medications usage worry about the availability by digitalization and providing mobile  applications that track the usage and order refills, raised consumer health benefits by offering all the required products and services at single location 24 hours, reduced the costs and increased savings monetarily for the consumers and created a new healthcare system that goes beyond pharmacy and provide various health care services and become a healthcare delivery system.

Blue Ocean Strategy value proposition for CVS Health is the increase in buyer’s utility as consumers have tremendous healthcare and monetary benefits through the stores, reduced prices for the consumers and also manage costs efficiently. Key to success is the adoption of mobile and digitalization technologies to further innovate and develop new services for consumers. CVS Health is one of the most innovative Blue Ocean Strategy adopter.