CVS and Target: Competitors turned Collaborators

cornell_merlo

Key Lesson:  Sometimes friendly competition can lead to shared goals and enhanced value for all stakeholders.

Target CEO Brian Cornell and CVS CEO Larry Merlo have known each other for a long time, and they’re in the habit of occasionally having dinner together to compare notes on running their respective businesses. It’s no secret that their retail sectors have been colliding more and more in recent years, so their openness to sharing their challenges with each other is remarkable in itself.

Recently, though, they went a step further and negotiated a $1.9 billion deal allowing CVS to acquire and run all of Target’s pharmacies and clinics — essentially functioning as “stores within a store.” As their teams cobbled together the terms of the deal, both CEOs came to the same surprising conclusion. Beyond the obvious advantages the deal brings to their businesses, Merlo confided to Bloomberg Business that they were “amazed at how close-knit our cultures are.”

That cultural connection may be the most critical part of their collaboration. Yes, Target is getting a nice cash infusion and will now be able to focus on its e-commerce and core retail businesses. And yes, CVS will be able to quickly expand its footprint by adding hundreds of locations nationwide. But the real advantage may be in the mutually rewarding relationship that Cornell and Merlo have built over the years — and the extension of that relationship to their burgeoning organizations. Cultivating mutually rewarding relationships is a key tenet of our Grounded Leader model, and that bodes well for their shared future. Mr. Cornell offers a clue to what that future might look like:  “Over time, I think we’ll continue to evaluate ways to work together. I wouldn’t rule anything out.”

Brian Cornell and Larry Merlo are our Grounded Leaders of the Week for their ability to look beyond their competitive positions and forge mutually rewarding relationships for themselves, their employees and their companies.

 

 

 

Share
0

About the Author

LATEST POSTS & NEWS

Thought Papers & e-Books

The Healthy Leader® Download Archives CALM IN CHAOS: HOW TO THRIVE IN THE NEW WORLD OF WORK DOWNLOAD NOW LEADERSHIP JOURNEYS DOWNLOAD NOW THE ORGANIZATION OF THE FUTURE DOWNLOAD NOW GROUNDED AND CONSCIOUS LEADERS – THREE OPTIONS DOWNLOAD NOW VIRTUAL GROUNDED AND CONSCIOUS LEADERSHIP EXPERIENCE DOWNLOAD NOW THE NEW LEADERSHIP

Share
READ MORE

How to Build a Healthy Corporate Culture

Business success depends on having a healthy culture. A healthy culture depends on leaders who model the values and behaviors needed to build and sustain it. How do you get there? How do you take whatever culture you have today and optimize it to endure and thrive even in this

Share
READ MORE

THE HEALTHY LEADER® Wins Gold, Silver and Bronze

THE HEALTHY LEADER®, a leader in innovative leadership development programs, won coveted Brandon Hall Group Gold, Silver, and Bronze awards for excellence in two Leadership Development categories and one Excellence in Technology category.

Share
READ MORE

ADDRESS

1101 Wilson Blvd. 6th Floor Arlington, VA 22209 USA

PHONES

+ 1 703 351 9901

CONTACTS

Need information here - is this new email addresses?