AmerisourceBergen SWOT Analysis

Strengths

AmerisourceBergen is one of the leading pharmaceuticals company and is committed to the pharmaceutical supply channel.

The company has been growing at a remarkable rate since in 1999. In 1999, AmerisourceBergen purchased C.D. Smith Healthcare which was a wholesale regional pharmaceuticals company, and signed an agreement with the Veterans Affairs to provide services to its more than 500 pharmacies.

The single focus of AmerisourceBergen to build its channels and be a market leader, allows it to drive expertise and efficiency along the entire channel and finally have value to its suppliers, aid providers, customers and shareholders.

In 2000, AmerisourceBergen purchased Pharmacy Healthcare Solution which was a pharmacy consulting company and was preferred provider in 1999. Through this step AmerisourceBergen became the largest supplier to hospitals and aid systems in the United States.

To this day, AmerisourceBergen has introduced several value-added programs since late 1990s, including Med Assess and the Diabetes Shoppe. Other programs included American Health Packaging, Family Pharmacy, ECHO, and Health Services Plus, the company’s proprietary code system.

Weaknesses

On the other hand, in 1996, many of its previous customers were less than satisfied with the product and services of the company. In a case, which was later dismissed in District Court, many retail pharmacies asserted that AmerisourceBergen had worked against to deprive them of discounts offered by hospitals, accumulation order pharmacies and HMOs. This affected the reputation of the company badly and is therefore, one of the weaknesses.

One of the weaknesses of AmerisourceBergen related to the management is the fact that the CEO and the COO of the firm also are members of Board of Directors.

Opportunities

The pharmacy industry has continued to expand, fuelled by an aging population (the baby boomers) and there is a rising need for upbeat care. The trend in pharmaceutical distribution was toward few competitors that handled greater market share.

Rising demand, usage of drugs, medicines and increasing prices can drive long-term revenue for the company even in excess of inflation.

AmerisourceBergen has cut down its administrative expenses over the years to a great extent by finance in profession and developing more economical operating methods, which could support the company in the long run.

Threats

The current economic recession has affected everything even prescription drug sales. unlike competitors like McKesson, AmerisourceBergen has divested itself of everything right of its core drug-distribution business so a minor change in anything related to the pharmacy industry results in reduction of revenues of the company. If prescription writing doesn’t picks up AmerisourceBergen’s business might find it hard to survive in the market. Therefore, this is a serious threat for the company.

Competition in the industry is very strong and some of the major players and competitors are constantly looking better strategic solutions in the organisation channels or acquisitions in order to increase market share. The competitors of AmerisourceBergen include Cardinal Health Inc, McKesson Corporation and Omnicare Inc and all pose serious threat to the market share of company.. AmerisourceBergen has significantly lower market estimation than Cardinal Health and McKesson Corporation but also a much lower number of employees.

Leave a Reply

Your email address will not be published. Required fields are marked *

seven + 9 =

Pin It on Pinterest

Shares
Share This
Close
Get our SWOT Analysis Updates

Receive Free SWOT Analysis of Companies and Corporation on your Email.....