Cardinal Health SWOT Analysis
The clinical excellence of Cardinal Health that it showed by launching Pyxis MedStation. The Pyxis MedStation is a robust product that offers clinical upgrading in concerns of enduring privacy, accurate dosing and work-flow efficiency.
Reduction of medical errors is another advantage of Pyxis MedStation. It is built to the highest standards and proactively which helps to prevent routine medical errors related to drug administration. It also reduces the course of errors related to fail-safe systems, improvement of medicine efficiency and reduction of work stress among pharmacists and nurses. Hence, Pyxis MedStation is a big strength of the company and gives it a competitive edge.
RFID capability of Pyxis MedStation is also strength of the company. As forgery becomes as issue in healthcare industry, the Pyxis MedStation is equipped to recognize products tagged with RFID as authentic drugs.
The company has set new standard of care; whether developing health delivery systems containing binary sites, imaging or actualized enduring healthcare delivery, the electronic image management systems are becoming the new standard of care.
Other strengths of the company are fast and effective communication between medicine and nursing. The cost reduction and effective strategies of the company, better inventory Controls, inventory migration tracking etc.
The Cardinal Health also has some weaknesses and one of them is the Limited client base. Pyxis by the company caters to a part of the market not to the whole. As the expenditure for installation is high, it product and services can only be marketed to high budget hospitals, clinics and pharmacies in developed countries.
Another weakness is the expensive conversion required. The client gets the completer ad real benefits of installment of Pyxis MedStation after a certain range of products are installed and upgraded. This means a high purchase amount commitment for installation and conversion is required. It is a business barrier for the company to reach and capture its potential customers.
The rapidly changing technology can also act as a barrier in some respects. Before the company markets and sells its costly products they might become obsolete even before the recovery of investment costs.
Brand expansion is an opportunity that the company must avail. There is clear rising demand of branding from its competitors except for the McKesson products. This represents a clear opportunity for Cardinal Health Company to increase and make its leading position in the market stronger.
According to the recent trends and Economies of scale it is predicted that the hardware and software costs will decrease and thus, giving Pyxis an opportunity to grow further. The company can to modify the product to reach other global potential markets. It could also modify their target to include individual pharmacies, and clinics.
Current policies, rules and regulations for this industry are very strict and stringent, growing day by day and varying from one place to the other. With each market segment having different and changing legal regulations, Pyxis costs can rise due to spending on resources supporting these regulations.
The competition is getting fierce day b day so it is very important to cut down the cost otherwise it is a serious threat to company’s growth and success in the long run.