A) Focused Differentiation Strategy

1)Define it.

2)Cite it.

3)Describe its importance.

B) read the following then answer the questions :

1. How does this relate to strategic management?

2. What are some other examples of companies using this strategy?

3. Evaluate the effectiveness of this strategy.

CVS Buys Aetna for $69 Billion

LESTER HOLT, anchor:

Now to a blockbuster deal that could affect how millions of people pay for prescription drug.
CVS, the pharmacy chain, agreeing to buy Aetna, the health insurance giant in a deal worth $69
billion. NBC News business correspondent Jo Ling Kent takes a look at what it could mean for
you and your family at the pharmacy counter.

JO LING KENT, reporting:

It's a landmark merger that could change the way millions of Americans get health care and
prescription drugs. CVS agreeing to buy Aetna for $69 billion--means for the first time ever, one
company will own and control an insurance provider, a retail pharmacy chain, and a pharmacy
benefit manager which negotiates the price and discounts for your prescription drugs.

LARRY MERLO: It's really the perfect time to bring these two companies together, to create a
new health care platform that can be easier to use and less expensive for consumers.

KENT: The combined company will operate nearly 10,000 CVS pharmacies and clinics like this
one. CVS plans to turn them into one-stop shopping for patients. You'll find more primary care
services from Aetna's care network, wellness centers, and your pharmacy all in one place. CVS
will continue to serve customers with other insurance too. It sounds convenient. But will it save
you money?

LAURENCE BAKER: Maybe they get some more negotiating leverage and they can try to drive
some health care costs down.

KENT: Experts also say this mega merger will mean less competition overall which limits choice
for consumers. The deal comes as Amazon prepares to enter the prescription drug market. The e-
commerce giant has already received approval for wholesale pharmacy licenses in 15 states,
potentially disrupting how you get your drugs and driving prices lower. A major shift in how
your health care is delivered that could affect the price you pay. Jo Ling Kent, NBC News, Los
Angeles.