Week One Business Checkpoint Essay
Week One Business Checkpoint
Consider a local business whose services you frequently use. What are the main components of this company’s business model? Write a 200- to 300-word response describing the three components of the business system that comprise the local business you selected. Use Figure 1.2 on p. 11 of Introduction to Business as a reference. The local business I choose is CVS Pharmacy. CVS Pharmacy is a big competitor to Walgreens here in Illinois. The main components CVS Pharmacy uses as a business model are competition, advertising, and the laws of supply and demand. Since this store’s biggest profit area is the pharmacy department they are always in competition with Walgreens. These two are across town from each other but are the only two pharmacies to supply the three towns that are in this area. The next closest pharmacy is Wal-Mart twenty miles away. CVS competes to have the lowest prices to get all the business instead of Walgreens. CVS advertises that they bet Walgreens prices by carrying generic medication to help lower prices. CVS puts out weekly advertisements so people know what they have at all times. This is also used to put special sale prices out there to draw more people in. This week in their advertisement says if you buy four twelve packs of soda you can get them for $2.50 each. When soda usually goes for $5 a twelve pack this is already a great deal, then they add in if you use your CVS card you get $2 bonus buck back which can be used for anything in the store. This is a great way to let people know they can keep up with the laws of supply and demand. The managers of CVS know that they are not the only pharmacy around so they keep medicines in stock to keep the supplies up when the demands are needed. I was talking to the Pharmacist the other day and she told me the computer tracks what medicines are bought and how often then they use that to keep supplies on hand to meet the demands. Putting medicine a side they also supply milk, cereal, soda, make-up, and liquor. These are all things that people often want to grab all in one stop so it is a little more expensive but the supply is there and the demands are met.