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  1. 1. Cardinal Health Kristina Garabedian Tommy Petramalo Steven Seelye
  2. 2. History <ul><li>Began as Cardinal Foods in 1971 </li></ul><ul><li>1984 focused on Healthcare Distribution Industry </li></ul><ul><li>Since 1983 they have acquired over 60 companies </li></ul><ul><li>2007 voted as Forbes most admired firm and Fortune 500 ranked 19th </li></ul>
  3. 3. Products/Services <ul><li>Pharmaceutical distribution </li></ul><ul><li>Surgical masks, drapes and gowns </li></ul><ul><li>Fluid suction and collection products </li></ul><ul><li>OnSiteSM service surgical instrument repair </li></ul><ul><li>Interventional radiology products, special procedures </li></ul><ul><li>Products are used in 90% of hospitals </li></ul><ul><li>50% of surgeries use Cardinal Health’s products </li></ul>
  4. 4. Stock Chart
  5. 5. Mission Statement <ul><li>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 </li></ul>
  6. 6. Target Market <ul><li>Cardinal Health is a global healthcare company, serving: </li></ul><ul><li>Hospitals/Providers </li></ul><ul><ul><li>Hospitals </li></ul></ul><ul><ul><li>Physician offices </li></ul></ul><ul><ul><li>Surgery centers </li></ul></ul><ul><li>  Retail pharmacies </li></ul><ul><ul><li>Retail chains </li></ul></ul><ul><ul><li>Community/Independent </li></ul></ul><ul><li>  Suppliers </li></ul><ul><ul><li>Medical suppliers </li></ul></ul><ul><ul><li>Laboratory suppliers </li></ul></ul>
  7. 7. Future of Industry <ul><li>Healthcare Distributors </li></ul><ul><li>Three major competitors </li></ul><ul><li>Forecasted market growth </li></ul>
  8. 8. Strengths <ul><li>Large scale of operations </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>High returns </li></ul><ul><ul><li>Record high returns on assets, investment and equity compared to the industry averages in recent years. </li></ul></ul><ul><li>Diverse product portfolio </li></ul><ul><ul><li>The diverse range of offerings provided by the company meets the different requirements of manufacturers as well as health care providers. </li></ul></ul><ul><li>Performance of clinical technologies and services </li></ul><ul><ul><li>clinical technologies and services segment represented a strong performance in 2006. </li></ul></ul>
  9. 9. Weaknesses <ul><li>High dependence on few suppliers </li></ul><ul><ul><li>High dependence on a few suppliers means Cardinal Health’s business would be severely affected if it loses any supplier. </li></ul></ul><ul><li>Weak profitability of pharmaceutical distribution and services and pharmaceutical technologies and services </li></ul><ul><ul><li>Decreased selling margins due to competitive pressures. </li></ul></ul><ul><ul><li>Higher costs within the nuclear pharmacy services business. </li></ul></ul><ul><li>Costumer concentration </li></ul><ul><ul><li>A significant portion of the company’s revenue growth has been derived from a limited number of large customers. </li></ul></ul><ul><ul><li>Any losses in sales from one of their few customers would effect their operations and financial condition. </li></ul></ul>
  10. 10. Opportunities <ul><li>Aging US population </li></ul><ul><ul><li>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). </li></ul></ul><ul><li>Increasing demand for patient monitoring systems </li></ul><ul><ul><li>The demand for patient monitoring systems is expected to increase 5.4% annually to $9.1 billion in 2010. </li></ul></ul><ul><li>Acquisitions </li></ul><ul><ul><li>Medicap, Snowden Pencer Holdings, Geodax Technology, ParMed Pharmaceutical, a telemarketing business, Denver Biomedical, and MedMined are just a few examples. </li></ul></ul>
  11. 11. Threats <ul><li>Deficit Reduction Act </li></ul><ul><ul><li>The government intends to cut its spending on Medicare and Medicaid as a part of its Deficit Reduction Act of 2005. </li></ul></ul><ul><ul><li>Demand for supplies would go down. </li></ul></ul><ul><li>Regulations </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>Strong competition </li></ul><ul><ul><li>Some of Cardinal Health’s business segments operate in highly competitive areas. </li></ul></ul><ul><ul><li>In the pharmaceutical technologies and services segment, the company competes on several fronts both domestically and internationally </li></ul></ul>
  12. 12. Elements of the Marketing Mix Price Promotion Place Product Four Ps
  13. 13. Additional Three Ps Service Ps People Process Physical Evidence
  14. 14. Techniques to Help Strategic Planning Continual Attention Management Commitment Creativity Effective Strategic Planning
  15. 15. Promotion in Marketing Mix Overall Marketing Objectives <ul><li>Marketing Mix </li></ul><ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>Price </li></ul>Target Market <ul><li>Promotional Mix </li></ul><ul><li>Advertising </li></ul><ul><li>Public Relations </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Personal Selling </li></ul><ul><li>Promotional Plan </li></ul>
  16. 16. Suppliers <ul><li>Alaris Products </li></ul><ul><li>Medical Products and Services </li></ul><ul><li>Pyxis Products </li></ul><ul><li>SP Laboratory Products </li></ul>
  17. 17. Any Questions?