Cardinal Health Kristina Garabedian Tommy Petramalo Steven Seelye
Began as Cardinal Foods in 1971
1984 focused on Healthcare Distribution Industry
Since 1983 they have acquired over 60 companies
2007 voted as Forbes most admired firm and Fortune 500 ranked 19th
Surgical masks, drapes and gowns
Fluid suction and collection products
OnSiteSM service surgical instrument repair
Interventional radiology products, special procedures
Products are used in 90% of hospitals
50% of surgeries use Cardinal Health’s products
Cardinal Health, Inc. (NYSE: CAH) is a global company serving the health-care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide
Cardinal Health is a global healthcare company, serving:
Future of Industry
Three major competitors
Forecasted market growth
Large scale of operations
Four different operations; products and services, technology and services, pharmaceutical technology and services, and pharmaceutical distribution and services and operates in over 20 different countries.
Record high returns on assets, investment and equity compared to the industry averages in recent years.
Diverse product portfolio
The diverse range of offerings provided by the company meets the different requirements of manufacturers as well as health care providers.
Performance of clinical technologies and services
clinical technologies and services segment represented a strong performance in 2006.
High dependence on few suppliers
High dependence on a few suppliers means Cardinal Health’s business would be severely affected if it loses any supplier.
Weak profitability of pharmaceutical distribution and services and pharmaceutical technologies and services
Decreased selling margins due to competitive pressures.
Higher costs within the nuclear pharmacy services business.
A significant portion of the company’s revenue growth has been derived from a limited number of large customers.
Any losses in sales from one of their few customers would effect their operations and financial condition.
Aging US population
Almost all revenues comes from the healthcare and pharmaceutical industries, the outlook for which is positive owing to the aging of the US population (baby boomers).
Increasing demand for patient monitoring systems
The demand for patient monitoring systems is expected to increase 5.4% annually to $9.1 billion in 2010.
Medicap, Snowden Pencer Holdings, Geodax Technology, ParMed Pharmaceutical, a telemarketing business, Denver Biomedical, and MedMined are just a few examples.
Deficit Reduction Act
The government intends to cut its spending on Medicare and Medicaid as a part of its Deficit Reduction Act of 2005.
Demand for supplies would go down.
The company is subject to various local, state, federal, foreign and transnational laws and regulations, which include the operating and security standards of the DEA, the FDA.
Some of Cardinal Health’s business segments operate in highly competitive areas.
In the pharmaceutical technologies and services segment, the company competes on several fronts both domestically and internationally
Elements of the Marketing Mix Price Promotion Place Product Four Ps
Additional Three Ps Service Ps People Process Physical Evidence
Techniques to Help Strategic Planning Continual Attention Management Commitment Creativity Effective Strategic Planning
Promotion in Marketing Mix Overall Marketing Objectives