Access over 20 million homework & study documents
search

Cigna Express Scripts CVS Aetna Discussion

Content type

User Generated

Subject

Business

Type

Discussion

Rating

Showing Page:
1/2
Discuss why Cigna is acquiring Express Scripts, and why CVS and Aetna are merging, and
why Walmart is interested in acquiring Humana; how are changes in the healthcare
industry, technology, and cost considerations, motivating these deals?
The Humana deal might be the biggest acquisition in Walmart history. Walmart is making
an aggressive move into the healthcare sector utilizing its existing infrastructure, the
extensive reach into communities and its trusted brand. According to article, Walmart
operates 4,700 stores in the US and employs about 1.5 million, so a good reason to
acquire Humana would be to lower health insurance costs of its employees. Also Walmart
has many pharmacies and it would greatly benefit from this deal by bringing new
customers (policy holders) from the other side. Also Walmart is required to keep up e-
commerce competitors like Amazon and CVS in order sustain the business. CVS is
buying Aetna will enable the company to save on costs and attract more health care
consumers and increase its revenues. Also this move will help CVS converts its operation
into a healthcare company. So it is natural for Walmart to acquire companies in order to
compete. If the Walmart-Humana deal goes forward, it would transform the US biggest
retailer into a healthcare provider and place huge pressure on the healthcare industry to
cut costs and innovate. The same goes for Cigna, it needs this deal to compete with the
rivals in the industry who have already made plans to integrate vertically and become the
new players in the health care industry which is very competitive. So naturally Cigna
wants to lower its costs and this deal will allow to cut costs and offer better integrated
services.
What can we learn from these acquisitions about the strategic reasons for choosing
mergers as a growth strategy, and about the impact of a merger on other competitors
and the industry as a whole

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/2

Sign up to view the full document!

lock_open Sign Up

Unformatted Attachment Preview

• Discuss why Cigna is acquiring Express Scripts, and why CVS and Aetna are merging, and why Walmart is interested in acquiring Humana; how are changes in the healthcare industry, technology, and cost considerations, motivating these deals? The Humana deal might be the biggest acquisition in Walmart history. Walmart is making an aggressive move into the healthcare sector utilizing its existing infrastructure, the extensive reach into communities and its trusted brand. According to article, Walmart operates 4,700 stores in the US and employs about 1.5 million, so a good reason to acquire Hu ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4