COMPANY PROFILE -McKesson Corporation
Business Sector :Healthcare
Operating Geography :North America, United States, Global
About McKesson Corporation :
McKesson Corporation is a global pharmaceutical distribution services and information technology company, currently ranked 7th on the Fortune 500. They deliver a comprehensive offering of pharmaceuticals and medical supplies and provide services to help customers improve the efficiency and effectiveness of their healthcare operations. They operate the business through two segments- McKesson Distribution solutions and McKesson Technology solutions. It is headquartered in New York, USA. McKesson was founded by Charles Olcott and John McKesson. The company originated as an importer and dealer of botanical pharmaceuticals in New York City in 1828 as Charles M. Olcott and subsequently as Olcott, McKesson & Co. in 1833. It has more than 75,000 employees as of March 2022.
The USP of McKesson lies in it being one of America’s largest pharmaceutical companies. McKesson’s mission statement reads, “Together with our customers and partners, we are creating a sustainable future for health care. Together we are charting a course to better health.” McKesson’s vision is to improve care in every setting one product, one partner, one patient at a time.
McKesson Corporation Revenue :
US $263.9 billion – FY ending 31st March 2022
US $238.2 billion – FY ending 31st March 2021
Competitive Analysis of McKesson Corporation
The SWOT analysis for McKesson is presented below:
Strengths | Weaknesses |
1. Strong presence in the USA and Canada pharmaceutical distribution business
2. Various offerings to diverse customer segments
3. Strong revenue growth in each segment
| 1. Dependency on United States for majority of the revenue
2. Large dependence on revenue from top 10 customers
|
Opportunities | Threats |
1. Acquisition of CoverMyMeds would help gain entry into new vertical of business
2. Favorable demographics in terms of age in USA.
3. More focus on Health Analytics software space
4. Expansion of oncology and biopharma ecosystems
| 1. Changes in regulatory policies in the healthcare industry would have material impact on revenues (USA and Canada)
2. Slowdown in Europe would affect the sales from the region
3. High competition in distribution business
4. Increased costs to distribute opioids
|
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Detailed SWOT Analysis of McKesson Corporation
Strengths
1. Strong presence in the USA and Canada pharmaceutical distribution business: McKesson is one of the largest pharmaceutical distributors in the USA. It supplies branded, specialty and generic pharmaceuticals and other healthcare-related products to customers throughout the United States in three primary customer channels- retail national accounts, independent retail pharmacies; and institutional healthcare providers. It also provides solutions and services to pharmaceutical manufacturers. Pharmacy order accuracy in North America is 99.9%. Each year, more than 50% of American doctors are provided with medical-surgical items. Moreover, 40 million or more prescription delivery annually is done by McKesson. McKesson Canada is one of the largest pharmaceutical distributors in Canada having a network of 14 distribution centers. The acquisition of Rexall Health, which operates approximately 470 retail pharmacies in Canada, particularly in Ontario and Western Canada, enhanced the Canadian pharmaceutical supply chain.
2. Differentiated offerings to diverse customer segments: McKesson provides differentiated offerings for various customer segments. Its Retail National Accounts business solutions help national account customers increase revenues and profitability. Solutions include Central Fill SM, Redistribution Centers, etc. Independent Retail Pharmacies solutions for managed care contracting, branding and advertising, operational efficiency, purchasing, automation and merchandising help independent pharmacists focus on patient care while improving profitability. Solutions include Health Mart, AccessHealth, McKesson Reimbursement Advantage, etc. For Institutional Healthcare Providers, McKesson provides electronic ordering/purchasing and supply chain management systems that help customers improve operational efficiencies and deliver better patient care along with financial performance. Solutions include Fulfill-Rx, Asset Management, etc. Thus, the various offerings for addresses the different needs within the value chain of the business.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weaknesses
This section is available only in the 'Complete Report' on purchase.
Opportunities
This section is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for McKesson is presented below in a matrix format followed by a detailed analysis:
Political | Economical |
1. Engagement in public policy issues and political contributions
2. Impact of healthcare reforms such as changes in pricing and reimbursement models
| 1. Overhauling of the H-1B work visa program by Trump administration
2. Inflation or related recessions may impact supply
|
Social | Technological |
1. Affordable Care Act facing an uncertain future
2. Role of pharmaceuticals in times of epidemic such as COVID-19
| 1. Healthcare analytics to improve performance, care and the bottom line
2. Acquisitions to strengthen technology capabilities
|
Legal | Environmental |
1. Regulations for the security of the supply chain
2. Involvement in various lawsuits highly impact reputation
| 1. Committed to reduction of carbon footprint and greenhouse emissions |
On purchase the McKesson Corporation SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of McKesson Corporation
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
1. Healthcare analytics to improve performance, care and the bottom line: The healthcare sector has undergone rapid transformation due to changes in regulations and domain processes. With the help of advanced analytics, industry players such as McKesson can leverage clinical patient and financial data and use them for actionable insights which help to improve performance, customer care and increase the bottom line. McKesson Corporation has established a brand-new, cutting-edge pharmaceutical distribution facility in Ohio. The new plant will provide consumers in Ohio, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia with pharmaceutical, over-the-counter (OTC), home healthcare (HHC), and consumer packaged goods (CPG) items. The 475,000 square foot complex, which is situated on around 40 acres, is equipped with the most cutting-edge automation in supply chain technology. This technology will maximise production and efficiency so that clients receive great service. Compared to McKesson's current biggest distribution centre, the Central Ohio distribution facility has the capacity to process two times as much volume. In order to accommodate volume increases and future expansion, the facility is equipped with automated putaway, replenishment, and order filling procedures, as well as a tote washer and robotic palletizer.
The remaining section under "Technological" is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the McKesson Corporation SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in McKesson Corporation SWOT & PESTLE Analysis Report
1. Annual Report - https://s24.q4cdn.com/128197368/files/doc_financials/2022/ar/2022-MCK-ANNUAL-REPORT.pdf
2. McKesson Opens Its Most Technologically Advanced Healthcare Distribution Center in Jeffersonville, Ohio - https://www.mckesson.com/About-McKesson/Newsroom/Press-Releases/2022/McKesson-Opens-Most-Technologically-Advanced-Healthcare-Distribution-Center/
3. McKesson and HCA Healthcare Announce Plans to Form an Oncology Research Joint Venture to Advance Cancer Care and Increase Access to Oncology Clinical Research - https://www.businesswire.com/news/home/20220623005518/en/McKesson-and-HCA-Healthcare-Announce-Plans-to-Form-an-Oncology-Research-Joint-Venture-to-Advance-Cancer-Care-and-Increase-Access-to-Oncology-Clinical-Research
4. McKesson to pay shareholders $141 mln in generic drug pricing lawsuit - https://www.reuters.com/legal/litigation/mckesson-pay-shareholders-141-mln-generic-drug-pricing-lawsuit-2022-11-03/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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