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Concerning the industry that CVS is in

Answer the following questions concerning the industry that CVS is in. CVS is in the Retail health care and NOT the pharmaceutical industry. Answer both questions without mentioning CVS at all.

  1. Are any changes taking place in the macroenvironment that might have a positive or negative impact on the industry in which your company is based? Apply the PESTEL framework to identify which factors may be the most important in your industry. What will be the effect on your industry?

2.Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across the strategic groups you have identified?

Sample Solution

nches extended on the horizontal well are the representatives of hydraulic fracturing. Hydraulic fracturing, commonly known as fracking, further extends the drainage pattern around horizontal wellbores by creating fracture patterns that facilitate flow. Fracking injects a high-pressure ‘fracking fluid’ (primarily water, sand and chemicals) into a wellbore to create cracks in the rock formations which release the oil and gas inside. ( This method is now widely used world-wild, ensuring the US and Canada to have constant gas supply for 100 years and has presented an opportunity to generate electricity at half the CO2 emissions of coal. ( Steam-assisted gravity drainage (SAGD) is another method used to open up large deposits below the surface and produce heavy crude oil and bitumen. It is an advanced form of steam stimulation in which a pair of horizontal wells are drilled into the oil reservoir, one a few meters above the other. High-pressure steam is continuously injected into the upper wellbore to heat the oil and reduce its viscosity, causing the heated oil to drain into the lower wellbore, where it is pumped out. Similar to fracking, SAGD consumes large quantities of water and natural gas – 20 times more than conventional oil drilling, which makes it very expensive to operate. A possible alternative would be cyclic steam stimulation (CSS) and high-pressure cyclic steam stimulation (HPCSS). ( Oil and gas in the Arctic Among the greatest uncertainties concerning future energy supply is the volume of oil and gas remaining to be found in high northern latitudes. According to the United States Geological Survey (USGS), there are about 30% of the world’s undiscovered gas and 13% of the world’s undiscovered oil may be found in the Arctic Circle. The recent retreat of polar ice makes petroleum exploration and development much easier.

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