UnitedHealth Group PESTLE Analysis

Published by MBA Skool Team, Last Updated: March 07, 2021

PESTLE Analysis of UnitedHealth Group analyses the brand on its business tactics. UnitedHealth Group PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as UnitedHealth Group, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the UnitedHealth Group PESTLE Analysis:

Political Factors:

The political factors in the UnitedHealth Group PESTLE Analysis can be explained as follows:

UnitedHealth Group operates in United States with a strong presence. The company has good political connections in all over the country. The company has invested a lot for lobbying and making legislations favourable to the company. As it offers health care services, it needs the support of political governments. The US has a very stable governments which is a favourable place to run the business. It also should consider the future policies made on the health care due to the pandemic. The company should also consider the policies made by the new government.

 

Image: company website


Economic Factors:

Below are the economic factors in the PESTLE Analysis of UnitedHealth Group:

The economy of the US is sluggish and the growth rate in highly advanced nation is low.

Due to pandemic, there is high unemployment and the income levels of the people has reduced. The disposable income and the average family expenditure have reduced a lot in this financial year. The economic stimulus given by the government may increase the income of the people and GDP of the economy which eventually helpful for the company. UnitedHealth should observe also observe the inflation and the GDP growth rate and the vaccination process which aids for the economy of the US.


Social Factors:

Following are the social factors impacting UnitedHealth Group PESTLE Analysis:

In the US, the literacy rate is high. The knowledge of taking the health care services also high. People in US are proactive and keenly observe the health care business. Due to covid, people are keener to health care services. They also have changed the mindsets to take the insurance services. Due to change in demographics, the company should innovate the new services for the new age groups. The insurance policies taken by the age group between 25-35 has increased a lot after pandemic. UnitedHealth should keep in mind about the rapid change. the pandemic also taught to not spend unnecessary and be proactive in health systems.


Technology Factors:

The technological factors in the PESTLE Analysis of UnitedHealth Group are mentioned below:

The technology has changed the behaviours of the consumers a lot. Technology makes the process of taking health care services in very less time. UnitedHealth should use analytics to track data and gain useful insights to develop the new products and services. To provide services in efficient way, the company should embrace the new technologies to collect the data and make inferences. For this they can use new age technologies like AI and block chain to safe guard the information.

The company should also have to incorporate the chat box to solve the minor issues of the consumers.


Legal Factors:

Following are the legal factors in the UnitedHealth Group PESTLE Analysis:

UnitedHealth is in health sector which has many legal rules should be followed. There are many rules and regulations to develop new services and products. They should follow the guidelines of the government in providing the insurance services. They once allegedly made discrepancy in mental health care which costs very high to the company. The company also should follow the employee rules according to the US government. The company should also ensure that it follows the rules of the state government.


Environmental Factors:

In the UnitedHealth Group PESTLE Analysis, the environmental elements affecting its business are as below:

The company didn’t generate much carbon foot print to affect the climate change. But the company will be affected by the natural disasters. Due to this natural disaster, there will be loss of economy to the people who availed the health care services and insurance service. They may not able to pay the premium which is a loss to the company.

UnitedHealth has to spend a lot on these cases to improve its contribution towards the environment. The operations of the company also will be disrupted due to the natural disasters. The company should be aware of this risk and have to do risk management steps.

To conclude, the above UnitedHealth Group PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

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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