According to The New York Times article, "CVS Stores Stop Selling All Tobacco Products", written on September 3, 2014, the company is changing their name and rebranding themselves. CVS has decided to change the name on their stores from CVS Pharmacy to CVS Health. The biggest decision in the rebranding process was the choice to remove all tobacco products from the shelves. CVS wants to be the place to go for your retail health and they believe selling tobacco products in the stores is hypocritical to their vision of being a healthcare retailer. The healthcare in America is changing very much with new rules and regulations. CVS is trying to stay ahead of the competition with their recent moves. CVS Health CEO, Larry J. Merlo, said in a recent phone interview, "We're at the forefront of what we all see as a changing health care landscape.".
In relation to what has been discussed during Mr. Denham eight a.m. class, these decisions CVS is making directly correlate to three major things, CVS strategic plan, how they will compete against their rival firms, and how government regulations, outside of business regulations, can effect a company. The rebranding of CVS pharmacy to CVS Health is definitely a major step in CVS' five year plan. New health care regulations helped propel this idea further and bring the company to the forefront of today's news. This decision could completely change the landscape for CVS and its major competitors. The competitors are now forced with a decision to follow suite or sit back and watch CVS' ideas unfold in the marketplace. .
Making the move to stop selling tobacco products is a huge step in the right direction for companies like CVS. Companies that market as a health care company should not be selling products that are proven to be very harmful for a persons health. This decision could help CVS generate more partnerships as well.