Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Optum analyses the brand by its strengths, weaknesses, opportunities & threats. In Optum SWOT Analysis, 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. Optum is one of the leading brands in the pharma and healthcare sector.
The table below lists the Optum SWOT (Strengths, Weaknesses, Opportunities, Threats), top Optum competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
The family of companies touches nearly every aspect of health care in the US
Health insurance and benefit plans , health care focused financial services
Mainly large employer groups
Modern health care by combining data and analytics with technology and expertise
SWOT Analysis of Optum
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
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
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
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
Below are the top 3 competitors of Optum:
1. CVS Health Corporation 2. Health Net, Inc. 3. Express Scripts Holding Company
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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