Optum SWOT Analysis, Competitors & USP

Optum SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Optum, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Optum to benchmark its business & performance as compared to the competitors, and make strategic improvements. Optum is one of the leading brands in the pharma and healthcare sector.

The article below lists the Optum SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Optum SWOT Analysis:

SWOT Analysis of Optum

For Optum, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Optum Strengths

The strengths of Optum looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Optum :

1. Its size and network is its biggest strength, it employed 94,000 across the globe
2. Together with its parent company UnitedHealth Group Inc. (UHG) it offers a spectrum of health products and services 
3. It takes advantage of the economies of scale and scope 
4. High barriers to entry in the health care industry is advantageous

5. Inorganic growth through strategic acquisitions e.g. XLHealth added 117,000 Medicare advantage members

6. Operations across North & South America, Europe, Asia Pacific and Middle East

Optum Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Optum SWOT Analysis:

1. Even though Optum is a market leader, the competitiveness of the industry is increasing every year
2. Significant level of indebtedness along with its parent UHG can hamper its operations as well as expansion plans
3. Due to the nature of the industry, litigations against the company will hamper the image of the company and the group

Optum Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Optum SWOT Analysis:

1. With its major operations in US, there is still a huge scope of expansion with an estimated 42 million people uninsured
2. With a trend towards generic medicines, the overall cost can come down and increase profitability 
3. It can introduce newer products which target specific segment of people

4. Global expansion will help benefit the group in increasing its base of customers

Optum Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Optum are as mentioned:

1. Regulatory environment is the biggest threat to its operations
2. With increasing technology, keeping pace with the advancements can be difficult and expensive
3. The negative publicity due to litigations is likely to affect private health insurance business

Optum Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Optum:

1. CVS Health Corporation
2. Health Net, Inc.
3. Express Scripts Holding Company

Hence this concludes the Optum SWOT analysis.

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About Optum

Optum Overview
Parent Company	UnitedHealth Group Inc.
Category	Health services and innovation company
Sector	Pharma and Healthcare
Tagline/ Slogan	Good for the system
USP	The family of companies touches nearly every aspect of health care in the US
Optum STP
Segmentation	Health insurance and benefit plans , health care focused financial services
Target Market	Mainly large employer groups
Positioning	Modern health care by combining data and analytics with technology and expertise

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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