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Strategic Analysis: McKesson
Pages 10 (2510 words)
Strategic Analysis: McKesson. The paper focuses on McKesson and the application of a number of strategic analysis models to examine the company’s external and internal environment along with their business-level strategies…
Such industry-level trends can have a considerable impact on McKesson’s strategy and operations. Michael Porter’s Five Forces will be applied as a framework the external analysis of McKesson particularly for reviewing the bargaining power of buyers, bargaining power of suppliers, availability of substitutes, threat of new entrants, and intensity of industry rivalry. Meanwhile, internal analysis will also be performed to examine McKesson’s own capabilities and performance. To have a more comprehensive view, a SWOT analysis will be performed to identify the company’s internal attributes, which are its strengths and weaknesses, along with the external attributes, referring to possible opportunities and threats. Company Background McKesson is known to be the largest pharmaceutical distributor in the United States as well as in the entire North America with which they distribute to over 40,000 pharmacy locations from hospitals and community pharmacies to government agencies and retail distributors (CNN 2009). At present, the company has been ranked as 15th in the FORTUNE 500 as they have obtained over $112.1 billion for their annual revenue. As a medical supply company, McKesson has been aiming to distribute homecare and medical-surgical supplies along with information technologies which allow the health care sector to carry out more effective and safer patient care. ...
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