Anthem SWOT and PESTLE Analysis

Strength

1. Huge network in big cities like, New York, California, Indiana, Colorado, Connecticut etc: Headquartered in Indianapolis, Indiana, Anthem, Inc. is an independent licensee of the Blue Cross and Blue Shield Association serving members in California, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia and Wisconsin; and specialty plan members in other states.

2. Major focus on customer engagement: The organisation has long recognized that one size does not fit all. The company's affiliated health and specialty plans are organized around various customer segments namely, National accounts, multi- state employer groups, Local groups, including customers with less than 5% of eligible employees located outside of the headquarter state, Individuals, customers under the age of 65 and their covered dependents, Specialty products, etc.

3. Broad portfolio of healthcare integrated plans and other services: Anthem, Inc. affiliated health plans have created a variety of PPOs, HMOs, various hybrid and specialty products, network-based dental products and health plan services that combine the attributes consumers find attractive with effective cost control techniques. Also available are a wide range of related specialty products and other services including flexible spending accounts and COBRA administration.

4. High profitability rates: The net income is above $2400 million and earnings per share in terms of basic net income are constantly above $9 million from 2014-2016 and a 10- year average of EPS% is 6.69. The EBT margin % of sales in 2016 is 5.37.

Weakness

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Opportunity

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Threat

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Political

1. Global governments looking for shared healthcare savings: Due to the passage of the Affordable Care Act (ACA) in 2010, healthcare providers could now share in the savings, take risk, and form relationships that were previously barred or were nebulously forbidden. Shared-savings arrangements represent a potentially higher level of reward for providers. Although per-member per-month payments and FFS rate increases generally cover only the added infrastructure and staff resources, shared savings can be an enticing incentive because providers who offer patient-centered medical homes are often challenged to maintain their previous productivity levels.

Economical

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Social

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Technological

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Legal

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Environmental

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