Article Summary

CVS is planning on losing billions of dollars in revenue by no longer selling cigarettes. When you look at the demographics of America, two thirds “view smoking as either an extremely or a very serious problem for society.” The decision to halt sales by the CEO might not have been easy, but with a father who smoked and died young from cancer, his personal feelings on the matter may have helped contribute to his decision.

However, this decision may do little to improve the health outcomes of most Americans and may end up putting CVS out of business if the competition simply picks up many of their customers. It seems like often times, when big organizations try to go against the grain, such as with prohibition or toppling Saddham Hussein, the outcomes are not as favorable as expected. Time will tell whether this decision will help create a positive outcome in CVS or America.

Reference

http://www.nationaljournal.com/health-care/why-cvs-is-ready-to-lose-billions-and-stop-selling-cigarettes-20140205

Comments (2)

  1. Hossein Vashani

    Reply

    I completely agree with Teja. This decision is not just for the health of society. I believe CVS has done many business analysis before making this decision to get dominant information about the market, people’s behavior, and other competitors.
    We should wait to see wether this decision can make benefits for CVS or not.

  2. Teja Reddy

    Reply

    This move by CVS can be debated. This move of banning cigarette sales by CVS can be morally supported by many people but technically speaking its true and evident that CVS can go out of business with this move. In general organizations like CVS should see where they are making good money and try to develop it. Banning sale of cigarettes may open a chance to increase their money by other competitors. So this was a brave move by CVS.

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