Introduction
and Background
The
case introduces us to the Cardinal Inc which for now is the leading
manufacturer in the products of medical it has its own pharmaceuticals. Company is one of the fortune 500
companies the head office is in Dublin, Ohio. So, talking about pharmaceuticals
and medical products its wide services offers to more than one hundred thousand
locations. it does has its own products of medical and surgical it almost
includes all the types of the surgical apparel and other equipment. so, what we
can conclude is it is the largest medical company it has a wide coverage of
almost 75% of hospitals in U.S.it has not only given services alone it has also
some of the tie ups with other companies, so they are proven to be the best
,biggest and cheapest medical suppliers in U.S. So, beginning of their starting
was a long back nearly 45 years long history is what they carried with them
with the name of their own in the pharmaceuticals company. it actually serves
as the middle person as it connects the providers and manufactures, we can view
them as a broker too. The employees are more than 30000 all around the world
but during their starting they have developed themselves as the cardinal Foods
inc which they later diversified in to the medical products. The long term
vision of Cardinal is to be the top leader in the name of medical and
Pharmaceuticals Company through continuous development, innovation, research
and development, scanning environment whereas the mission of them are to
retain, collect and to identify the biggest opportunities in the market place.
They want to be best by serving through the best to the customers they will to
win the heart of the customers through their excellent service.
Looking close to the history of
cardinal where they have started from the foods and have gone to the medical
products what we can see is the company was a food wholesaler at the initial
stage of the company back in 1971 to 1980.they have gone to the risk
diversification as they acquired Bailey drug company at the end of 70’s and
started their operations by wholesaling the drugs as Cardinal In. company was
the private company until then and after few years of time they have been to
the public acquiring and giving them shares to circulate, with the long acquisitions
and mergers to various big, small companies they gained their competitive
advantage in to the market place and
hence became the leader and a manufacturer to the medical equipments. Now the sales
are 8.9 billion dollars so it is now one of the largest or the 3rd
largest pharmaceutical wholesaler in U.S.
SWOT analysis of the Cardinal Health Inc.
Strength
·
One of the largest
wholesaler in U.S. it is even listed in one of the fortune 500 companies
·
Their mergers and
acquisitions after they have gone public which has led them to 50 acquisitions
in less than period of ten years.
·
The market positions are on their hands
·
Wide range of products
and wide range of services with high customer interaction
·
Continuous research
and development in the market place has made them more stronger and sincere to
the work.
Weakness:
·
Bottle neck
competition to other two big companies in the same field has made them little
weak
·
International
expansion is products but the international expansion is not that high.
Opportunities:
·
The growing market is
the biggest opportunity to the cardinal, the market is not only limited to
local markets even globally market is huge for medical equipments.
·
The growing health
issues, growing population has been the opportunities to the market.
·
The growing need of
the web based application, being adoptive to the market it could be the
opportunities to develop virtual method of doing business to the company.
·
Ne invention and
innovation to the products of the medical industry is the opportunity.
·
Company being public
and using the high capital can be the opportunity it will be helpful to them to
make acquisitions as the trust will be on their side.
Threats:
·
Differing rules and
regulation if the government and the countires are the threats
·
High taxes the
equipment and pharmaceuticals products
·
Neck to neck
competition to other two big giant medical companies are the threats
·
New out of the world
invention in the market place with copyright,patent from another company can be
the threat to the cardinal
·
Customer changing
behavior and not loyal customers that can shift will be the threat.
·
Incorporated CSR that
are high riskier and hard to achieve can also be the threat to the company
Present
and past Strategies
Looking at the past I
have seen the strategy of
diversification back in early days they were food industry as they have shifted
to medical they have diversify the risk for the company this is their past
strategy, as they have introduces themselves as medical to collect capital and
to win the trust they were gone public and they strategically win the heart of
the BOD and customers, due to the capital they made more than 50 acquisitions
internally within the company and the company grew a lot bigger. As they remain
focus and have the strategy of focus they traded to other big countries like
Canada.
But for now they need
to collaborate with other big companies from worldwide in order to give tough competition
to the other two competitors. as the main thing is the prosperity and growth to
any company, to grow, to survive, to retain themselves and to be strategically
fit they have to adopt the best method to stay alive into the heart and mind of
the customers for longer period of time. (Agrawal, 2010)
Conclusions
and recommendations
What can we learn from
the case is that how a company in less than 50 years grew from small to one of
the largest medical companies of the employment with more than 8000 employment
opportunities, how they have made strategy to survive not only survive but also
exceed on their field and be one of the top 3 companies in U.S. the case taught
us about the different strategy they have made to retain and also the long term
vision which is still going on or maybe will be go for 50 years or more. With
the increase in capital of Cardinal after they have gone to the public they
have matured themselves by the different products and they have win the trust
of the customers too, the acquisition was made possible its because of more
capital and collaboration with different venture which has made them more
stronger to deal with the competition.
So, to be extra and a
market leader they must now come up with the new strategy with a big shot
strategy to deal with the vulnerable market and to integrate with regional
corporations, they should be strong on their international business and their
IT services, research and development in any program must be one step forward
than their competitors so they can exceed on new technology and new invention.
giving customers the priority and taking organization to the prosperity and
growth must be their goals and objective, focus strategy on their products,
customer segmentation markets should be now their priority to stay on their
position.
Bibliography
Agrawal, G. R. (2010). Strategic Management.
Kathmandu: M.K. publishers.
Teagarden, M. B.
(2011). Cardinal Health Inc. In J. A. Pierce II, & R. B. Robinson Jr., Strategic
Management (pp. 18-1 to 18-16). Mcgraw Hill Irwin.
http: www.Cardinalhealth.com.html
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