SWOT ANALYSIS ON McKesson Corporation

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McKesson Corporation (NYSE: MCK) is the largest health care company in the world, with sales of $106.6 billion in 2009.

McKesson is based in the United States and distributes health care systems, medical supplies and pharmaceutical products. Additionally, McKesson provides extensive network infrastructure for the health care industry, and was an early adopter of new technologies like bar-code scanning for distribution, pharmacy robotics, and RFID tags.

It is a Fortune Global 500 company, and the 14th largest company in the United States.

Founded in New York City as Olcott & McKesson by Charles Olcott and John McKesson in 1833, the business began as an importer and wholesaler of botanical drugs. A third partner, Daniel Robbins joined the enterprise as it grew, and it was renamed McKesson & Robbins following Olcott's death in 1853.

Strengths

McKesson is a long established company in the healthcare industry. The company has a reputation built over a period of more than 175 years in providing of scrutiny goods and supplies.

McKesson is a leading provider of pharmaceuticals, analysis instrument supplies and aid aggregation technologies. The company’s leading position in the pharmaceutical distribution and aid and dealership with large companies enhances its strength.

McKesson provides services and products to healthcare providers and payers. From pharmaceuticals and supplies to worldly scrutiny workflow solutions, their offerings help customers reduce costs, streamline processes and, most importantly, improve patient treatment and drug safety.

McKesson focuses on delivering the vital medicines, supplies and aggregation technologies that enable the healthcare industry to provide patients better, safer care. The value added services provided by the company at low rates is one of its strengths.

McKesson is the distributor of one-third of the medicines used every day. The company provides its services to more than 40,000 U.S. pharmacy stores and locations, from Wal-Mart to the Department of Veterans Affairs to community pharmacies and hospitals. The large customer base is definitely one of its biggest strengths.

McKesson employs information technology systems that decimate the requirement for paper prescriptions and patient records.
Weaknesses

Being a company in the healthcare and medicine business, the company faces several legal tangles and restrictions related to patents, animal testing etc and have to be very careful in designing its strategies.

Healthcare is a high risk industry as it is related to critical patient conditions and involves life-or-death situations.

One of the weaknesses of McKesson is the lack of proper healthcare information grouping, processing and services that they provide for their clients. The increasing integration of technology in the form of use of computers and internet and information systems is critical to success of healthcare services.

Since there is a growing demand for effective products and services which McKesson is not strong enough to deliver, their aim of leading the pharmaceutical business is at risk.


Opportunities

The acquisitions and partnerships with different healthcare service providers, being considered by the company is a good opportunity that they must avail.

The politics or environmental concerns do not directly affect the growth of company so they can take many new steps and follow new strategies without any high risks factors being involved.




Threats

In the healthcare industry the competition is cutthroat and can result in lesser market share and profits of the company.
It is a very high risk business and the threat of legal restrictions and tangles is always there.

The McKesson being a healthcare company is less adaptable to changes but it is crucial if they want to achieve their objectives.

The presence of HBOC as a separate health related services and good provider threatens the objective of McKesson to become the leader in the industry. This is the case since HBOC is offering a goods and services that are not in the creation line of McKesson. Even if HBOC challenges exclusive digit aspect of McKesson’s Business, the fact that they are able to lead the industry in a specific services offering implies that McKesson will not be able lead the industry.
 
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